Bristol-Myers Squibb Company (BMY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.60 | 3.83 | 3.88 | 1.93 |
| Quick ratio | 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 | 1.38 | 3.65 | 3.66 | 1.69 |
| Cash ratio | 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 | 0.96 | 3.13 | 3.07 | 1.04 |
Bristol-Myers Squibb Co.'s liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has fluctuated over the quarters, ranging from a low of 1.18 in Q3 2023 to a high of 1.43 in Q4 2023. This ratio improved in Q4 2023, reflecting a slight increase in assets relative to liabilities compared to the previous quarter.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also shows variability, ranging from 1.07 in Q3 2023 to 1.31 in Q4 2023. This indicates that the company may have some challenges in meeting its short-term obligations without relying on inventory in certain quarters.
The cash ratio, which reflects the most conservative measure of liquidity, has shown fluctuations as well, with values ranging from 0.63 in Q3 2023 to 0.81 in Q4 2023. Despite the fluctuations, the company's ability to cover its current liabilities with cash has improved in Q4 2023 compared to the previous quarter.
Overall, while Bristol-Myers Squibb Co. seems to have maintained a generally adequate liquidity position, the fluctuations in the ratios suggest potential variations in the company's ability to meet its short-term obligations effectively. Monitoring these ratios over time can provide insights into the company's liquidity management and financial health.
See also:
Bristol-Myers Squibb Company Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
To analyze Bristol-Myers Squibb Co.'s cash conversion cycle over the past eight quarters, we can see fluctuations in the efficiency of its working capital management.
The cash conversion cycle measures the time it takes for a company to convert its resources into cash flows, reflecting how efficiently management is handling its accounts receivables, inventory, and accounts payables.
Observing the data provided, we note that the cash conversion cycle has ranged from 34.11 days in Q1 2022 to 70.64 days in Q3 2023. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital, while a longer cycle signals inefficiencies.
In the first two quarters of 2022, the company exhibited a notably shorter cash conversion cycle, suggesting effective management of its working capital components. However, in Q3 and Q4 of 2023, there was an increase in the cycle length, indicating potential challenges in converting resources to cash.
It is essential for Bristol-Myers Squibb Co. to continually monitor and improve its cash conversion cycle to ensure optimal working capital management and cash flow efficiency. Any prolonged trend of increasing days in the cycle may indicate potential liquidity issues or inefficiencies in managing its cash inflows and outflows.