Bristol-Myers Squibb Company (BMY)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	48,300,000	45,006,000	46,159,000	46,385,000	42,518,000
Total current assets	US$ in thousands	29,780,000	31,770,000	27,273,000	33,262,000	30,192,000
Total current liabilities	US$ in thousands	23,774,000	22,262,000	21,890,000	21,868,000	19,080,000
Working capital turnover		8.04	4.73	8.57	4.07	3.83

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $48,300,000K ÷ ($29,780,000K – $23,774,000K)
= 8.04

Bristol-Myers Squibb Company's working capital turnover has shown variability over the past five years. The ratio increased from 3.83 in December 2020 to 4.07 in December 2021, indicating a slight improvement in the company's efficiency in managing its working capital to generate sales.

However, a significant spike was observed in December 2022, with the working capital turnover reaching 8.57, suggesting a substantial enhancement in the efficiency of converting working capital into revenue during that period. The company may have optimized its working capital management practices or experienced a boost in sales relative to its working capital.

Subsequently, the ratio decreased to 4.73 in December 2023, indicating a potential decrease in efficiency in utilizing working capital to generate sales compared to the previous year. Nonetheless, the working capital turnover rebounded to 8.04 in December 2024, showcasing another period of strong performance in converting working capital into revenue.

Overall, Bristol-Myers Squibb Company's working capital turnover has displayed fluctuations over the years, with notable improvements in efficiency during certain periods. Further analysis would be necessary to understand the specific factors driving these fluctuations and to assess the company's overall working capital management strategy.