Bristol-Myers Squibb Company (BMY)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	34.53	31.35	30.38	33.68	30.02	25.53	26.48	25.99	25.33	32.25	38.73	45.24	64.30	62.65	81.76	104.39	193.98	59.96	67.30	69.61
Days of sales outstanding (DSO)	days	88.57	83.70	81.68	80.04	78.17	75.07	70.10	66.15	73.72	74.22	74.15	73.84	72.98	74.70	82.24	97.59	107.29	83.20	86.70	89.40
Number of days of payables	days	42.27	36.20	39.44	41.29	39.01	31.95	35.63	36.36	35.66	40.18	65.41	68.84	84.11	78.46	97.81	112.97	110.48	94.97	103.16	107.22
Cash conversion cycle	days	80.83	78.85	72.62	72.43	69.18	68.66	60.95	55.78	63.40	66.28	47.47	50.23	53.17	58.88	66.19	89.01	190.79	48.19	50.84	51.80

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.53 + 88.57 – 42.27
= 80.83

The cash conversion cycle for Bristol-Myers Squibb Co. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 68.19 days, which was slightly lower than the previous quarter at 70.64 days. Compared to Q2 and Q3 2023, the cycle has increased, indicating a potential inefficiency in managing cash flows and working capital.

Looking further back, Q2 and Q3 2022 had the lowest cash conversion cycle at 42.64 days and 34.11 days, respectively. This suggests that the company was more efficient in converting its investments in inventory and accounts receivable into cash during that period.

Overall, Bristol-Myers Squibb Co. should focus on optimizing its cash conversion cycle to improve its liquidity and operational efficiency. Strategies such as streamlining inventory management and accelerating accounts receivable collection could help reduce the cycle duration and enhance the company's financial performance in the long run.