Bristol-Myers Squibb Company (BMY)

Working capital 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 current assets	US$ in thousands	31,770,000	27,273,000	33,262,000	30,192,000	29,354,000
Total current liabilities	US$ in thousands	22,262,000	21,890,000	21,868,000	19,080,000	18,304,000
Working capital turnover		4.73	8.57	4.07	3.83	2.37

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $45,006,000K ÷ ($31,770,000K – $22,262,000K)
= 4.73

The working capital turnover of Bristol-Myers Squibb Co. has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.

In 2023, the working capital turnover ratio decreased to 4.73 from 8.57 in 2022, reflecting a decline in the efficiency of working capital utilization. This could be due to changes in the company's operating activities or management of its current assets and liabilities.

Comparing to 2021, the ratio improved significantly in 2022, indicating a positive trend in working capital efficiency. The company was able to generate more sales revenue for each unit of working capital in 2022 compared to the previous year.

In 2019 and 2020, the working capital turnover ratios were lower, indicating a lower efficiency in utilizing working capital to generate sales revenue. However, there was an improvement in 2021 and further enhancement in 2022, signifying better management of working capital during those years.

Overall, Bristol-Myers Squibb Co. has shown fluctuations in its working capital turnover ratio over the past five years. It would be essential for the company to analyze the underlying factors driving these changes to ensure optimal utilization of working capital for generating sales in the future.