Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Bristol-Myers Squibb Co., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.60 | 1.61 | 1.55 | 1.55 | 1.30 | |
| Quick ratio | 1.26 | 1.37 | 1.30 | 1.27 | 1.05 | |
| Cash ratio | 0.84 | 0.83 | 0.71 | 0.72 | 0.53 |
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Bristol-Myers Squibb Co.’s current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Bristol-Myers Squibb Co.’s quick ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Bristol-Myers Squibb Co.’s cash ratio improved from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Bristol-Myers Squibb Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 29,354 | 17,160 | 14,854 | 13,704 | 10,415 | |
| Current liabilities | 18,304 | 10,654 | 9,563 | 8,841 | 8,017 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.60 | 1.61 | 1.55 | 1.55 | 1.30 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | 1.44 | 1.62 | 2.26 | 4.02 | 1.54 | |
| AbbVie Inc. | 3.18 | 0.98 | 1.28 | 1.65 | 1.50 | |
| Amgen Inc. | 1.44 | 2.79 | 5.49 | 4.11 | 4.44 | |
| Biogen Inc. | 1.72 | 2.32 | 2.34 | 2.55 | 2.60 | |
| Eli Lilly & Co. | 1.16 | 1.73 | 1.32 | 1.37 | 1.53 | |
| Gilead Sciences Inc. | 3.10 | 3.38 | 2.74 | 2.22 | 2.50 | |
| Illumina Inc. | 6.69 | 2.49 | 3.99 | 3.29 | 3.43 | |
| Johnson & Johnson | 1.26 | 1.47 | 1.41 | 2.47 | 2.17 | |
| Merck & Co. Inc. | 1.24 | 1.17 | 1.33 | 1.78 | 1.55 | |
| Pfizer Inc. | 0.88 | 1.57 | 1.35 | 1.25 | 1.49 | |
| Regeneron Pharmaceuticals Inc. | 3.67 | 4.47 | 3.82 | 2.56 | 3.59 | |
| Vertex Pharmaceuticals Inc. | 3.61 | 3.43 | 3.28 | 2.31 | 2.78 | |
| Zoetis Inc. | 2.63 | 3.60 | 3.85 | 3.03 | 2.15 | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.58 | 1.74 | 1.83 | 2.11 | 1.94 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.49 | 1.53 | 1.62 | 1.76 | 1.72 | |
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 29,354 ÷ 18,304 = 1.60
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Bristol-Myers Squibb Co.’s current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Quick Ratio
Bristol-Myers Squibb Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 12,346 | 6,911 | 5,421 | 4,237 | 2,385 | |
| Marketable debt securities | 3,047 | 1,973 | 1,391 | 2,113 | 1,885 | |
| Net trade receivables | 6,476 | 4,636 | 4,347 | 3,774 | 2,948 | |
| Alliance, royalties, VAT and other | 1,209 | 1,111 | 1,262 | 1,142 | 1,169 | |
| Total quick assets | 23,078 | 14,631 | 12,421 | 11,266 | 8,387 | |
| Current liabilities | 18,304 | 10,654 | 9,563 | 8,841 | 8,017 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.26 | 1.37 | 1.30 | 1.27 | 1.05 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.88 | 1.03 | 1.67 | 3.31 | 1.04 | |
| AbbVie Inc. | 2.91 | 0.78 | 0.89 | 1.14 | 1.21 | |
| Amgen Inc. | 1.01 | 2.44 | 4.98 | 3.68 | 3.97 | |
| Biogen Inc. | 1.43 | 1.83 | 1.78 | 1.94 | 1.93 | |
| Eli Lilly & Co. | 0.68 | 1.20 | 0.91 | 0.98 | 1.04 | |
| Gilead Sciences Inc. | 2.86 | 3.15 | 2.52 | 1.78 | 2.07 | |
| Illumina Inc. | 6.00 | 2.23 | 3.43 | 2.75 | 2.90 | |
| Johnson & Johnson | 0.94 | 1.08 | 1.04 | 2.04 | 1.77 | |
| Merck & Co. Inc. | 0.78 | 0.72 | 0.83 | 1.24 | 1.04 | |
| Pfizer Inc. | 0.50 | 0.84 | 0.93 | 0.84 | 1.07 | |
| Regeneron Pharmaceuticals Inc. | 2.81 | 3.50 | 2.98 | 2.13 | 3.10 | |
| Vertex Pharmaceuticals Inc. | 3.33 | 3.19 | 2.94 | 2.06 | 2.41 | |
| Zoetis Inc. | 1.67 | 2.24 | 2.34 | 1.47 | 1.17 | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.19 | 1.29 | 1.41 | 1.65 | 1.51 | |
| Quick Ratio, Industry | ||||||
| Health Care | 1.13 | 1.12 | 1.24 | 1.36 | 1.32 | |
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 23,078 ÷ 18,304 = 1.26
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Bristol-Myers Squibb Co.’s quick ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Cash Ratio
Bristol-Myers Squibb Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 12,346 | 6,911 | 5,421 | 4,237 | 2,385 | |
| Marketable debt securities | 3,047 | 1,973 | 1,391 | 2,113 | 1,885 | |
| Total cash assets | 15,393 | 8,884 | 6,812 | 6,350 | 4,270 | |
| Current liabilities | 18,304 | 10,654 | 9,563 | 8,841 | 8,017 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.84 | 0.83 | 0.71 | 0.72 | 0.53 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | 0.38 | 0.45 | 1.08 | 2.82 | 0.67 | |
| AbbVie Inc. | 2.56 | 0.47 | 0.59 | 0.66 | 0.77 | |
| Amgen Inc. | 0.69 | 2.17 | 4.62 | 3.40 | 3.62 | |
| Biogen Inc. | 0.92 | 1.07 | 1.10 | 1.43 | 1.33 | |
| Eli Lilly & Co. | 0.21 | 0.68 | 0.55 | 0.55 | 0.54 | |
| Gilead Sciences Inc. | 2.50 | 2.84 | 2.19 | 1.29 | 1.48 | |
| Illumina Inc. | 5.13 | 1.95 | 2.88 | 2.21 | 2.27 | |
| Johnson & Johnson | 0.54 | 0.63 | 0.60 | 1.59 | 1.38 | |
| Merck & Co. Inc. | 0.47 | 0.40 | 0.46 | 0.83 | 0.70 | |
| Pfizer Inc. | 0.26 | 0.59 | 0.66 | 0.57 | 0.79 | |
| Regeneron Pharmaceuticals Inc. | 1.53 | 1.95 | 1.24 | 0.84 | 1.29 | |
| Vertex Pharmaceuticals Inc. | 2.85 | 2.83 | 2.59 | 1.81 | 2.06 | |
| Zoetis Inc. | 1.07 | 1.39 | 1.43 | 0.65 | 0.65 | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.82 | 0.90 | 1.01 | 1.24 | 1.11 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.73 | 0.72 | 0.85 | 0.95 | 0.92 | |
Based on: 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 15,393 ÷ 18,304 = 0.84
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Bristol-Myers Squibb Co.’s cash ratio improved from 2017 to 2018 and from 2018 to 2019. |