Bristol-Myers Squibb Company (BMY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	10,346,000	11,464,000	9,123,000	13,979,000	14,546,000
Short-term investments	US$ in thousands	802,000	1,275,000	1,234,000	5,006,000	4,737,000
Total current liabilities	US$ in thousands	23,774,000	22,262,000	21,890,000	21,868,000	19,080,000
Cash ratio		0.47	0.57	0.47	0.87	1.01

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,346,000K + $802,000K) ÷ $23,774,000K
= 0.47

The cash ratio of Bristol-Myers Squibb Company has shown a decreasing trend over the past five years, starting at 1.01 as of December 31, 2020, and decreasing to 0.87 by December 31, 2021. Subsequently, the ratio declined further to 0.47 by December 31, 2022 and remained at the same level by December 31, 2024. However, there was a slight improvement to 0.57 by December 31, 2023.

The decreasing trend in the cash ratio indicates that the company may be experiencing challenges in maintaining sufficient cash to cover its short-term obligations. A lower cash ratio may imply a higher dependency on short-term borrowing or a decrease in the company's ability to meet its immediate financial obligations without relying on other sources of liquidity. It is essential for Bristol-Myers Squibb to closely monitor its cash management practices to ensure it can effectively manage its short-term liquidity needs.