Bristol-Myers Squibb Company (BMY)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 45,006,000 | 46,159,000 | 46,385,000 | 42,518,000 | 26,145,000 |
| Total assets | US$ in thousands | 95,159,000 | 96,820,000 | 109,314,000 | 118,481,000 | 129,944,000 |
| Total asset turnover | 0.47 | 0.48 | 0.42 | 0.36 | 0.20 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $45,006,000K ÷ $95,159,000K
= 0.47
The total asset turnover ratio measures a company's ability to generate revenue in relation to its total assets. A higher total asset turnover indicates that the company is more efficient in utilizing its assets to generate sales.
In the case of Bristol-Myers Squibb Co., the total asset turnover has shown a generally improving trend over the past five years. The ratio has increased from 0.20 in 2019 to 0.47 in 2023. This indicates that the company has been more effective in generating revenue relative to its total assets over the years.
The increase in total asset turnover suggests that Bristol-Myers Squibb Co. has been able to streamline its operations, manage its assets more efficiently, or increase sales without significantly increasing its asset base. This could be a positive sign of improved operational efficiency and management effectiveness within the company.
Overall, the increasing trend in total asset turnover for Bristol-Myers Squibb Co. reflects positively on its ability to utilize its assets effectively to drive revenue growth and indicates a positive trajectory in terms of operational efficiency and asset management.
Peer comparison
Dec 31, 2023