Bristol-Myers Squibb Company (BMY)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 1.25 1.24 1.16 1.11 1.43 1.18 1.39 1.42 1.25 1.42 1.44 1.32 1.52 1.47 1.54 1.56 1.58 1.67 1.47 1.66
Quick ratio 0.92 0.87 0.80 0.80 1.06 0.78 0.98 1.06 0.92 1.03 1.12 1.09 1.30 1.34 1.34 1.43 1.46 1.58 1.38 1.49
Cash ratio 0.47 0.39 0.31 0.40 0.57 0.34 0.48 0.53 0.47 0.53 0.68 0.72 0.87 0.91 0.86 0.93 1.01 1.18 1.05 1.05

The liquidity ratios of Bristol-Myers Squibb Company provide insights into its ability to meet short-term obligations. The current ratio, which measures the company's ability to cover its current liabilities with its current assets, has shown a declining trend over the past few years, from 1.66 in March 2020 to 1.25 in December 2024. This indicates a potential weakening in the company's short-term liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also experienced a downward trend, from 1.49 in March 2020 to 0.92 in December 2024. This suggests that Bristol-Myers Squibb may face challenges in meeting its immediate obligations without relying on inventory.

Furthermore, the cash ratio, which focuses solely on the company's ability to cover current liabilities with cash and cash equivalents, has shown a similar decline over the years, dropping from 1.05 in March 2020 to 0.47 in December 2024. This indicates a reduction in the company's liquid cash reserves relative to its current liabilities.

Overall, the decreasing trends in the current ratio, quick ratio, and cash ratio imply a potential deterioration in Bristol-Myers Squibb's short-term liquidity position. Management may need to closely monitor and efficiently manage its working capital to ensure the company can meet its immediate financial obligations.

See also:

Bristol-Myers Squibb Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 69.17 83.18 81.32 76.80 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

The cash conversion cycle of Bristol-Myers Squibb Company has shown fluctuations over the periods indicated. The company's cash conversion cycle, which represents the time taken to convert resources invested in the production of goods into cash flows from sales, has varied between 47.47 days to 83.18 days.

A lower cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert its inventory and receivables into cash quickly. Conversely, a higher cash conversion cycle may suggest inefficiencies in the company's operations or challenges in collecting receivables and managing inventory levels.

It is observed that the cash conversion cycle initially decreased from 89.01 days as of March 31, 2020, to a low of 47.47 days by June 30, 2021, indicating improved efficiency in working capital management. However, the cycle then increased again, reaching a peak of 83.18 days as of September 30, 2024.

Further analysis of the reasons behind these fluctuations in the cash conversion cycle, such as changes in inventory management, payment terms with customers, or collection processes, would be necessary to fully understand the implications for Bristol-Myers Squibb Company's financial performance and operational efficiency.