Bristol-Myers Squibb Company (BMY)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	10,747,000	10,921,000	9,886,000	9,369,000	8,501,000
Total current liabilities	US$ in thousands	23,774,000	22,262,000	21,890,000	21,868,000	19,080,000
Quick ratio		0.92	1.06	0.92	1.30	1.46

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,346,000K + $802,000K + $10,747,000K) ÷ $23,774,000K
= 0.92

The quick ratio of Bristol-Myers Squibb Company has shown some fluctuations over the years. As of December 31, 2020, the quick ratio was 1.46, indicating the company had $1.46 in liquid assets available to cover each $1 of current liabilities. However, by December 31, 2021, the quick ratio decreased to 1.30, which may suggest a slight weakening in the company's short-term liquidity position.

There was a noticeable decline in the quick ratio by December 31, 2022, where it fell to 0.92. This decrease could indicate a potential liquidity challenge as the company may have had fewer liquid assets readily available to cover its short-term obligations.

By December 31, 2023, the quick ratio improved slightly to 1.06, implying a better ability to meet its current liabilities with liquid assets. Nonetheless, the quick ratio dropped back to 0.92 by December 31, 2024, suggesting another decrease in short-term liquidity.

Overall, the trend in Bristol-Myers Squibb Company's quick ratio indicates some variability in its ability to quickly cover its short-term obligations with liquid assets over the years, with some fluctuations possibly signaling changes in the company's working capital management or cash flow dynamics.