Bristol-Myers Squibb Co. (NYSE:BMY)

Current Ratio

The current ratio exhibits a fluctuating but generally declining trend between March 31, 2020, and June 30, 2025. Initially, the ratio stands at 1.66, which decreases to a low of 1.11 in March 31, 2024. Thereafter, a moderate recovery is observed, reaching 1.28 in March 31, 2025. Overall, the current ratio remains above 1.0 throughout the periods, indicating that the company maintains sufficient current assets to cover its current liabilities, though with a gradually narrowing margin over time.

Quick Ratio

The quick ratio shows a similar downward trajectory with some fluctuations throughout the analyzed periods. Starting at 1.38 on March 31, 2020, it declines to its lowest point of 0.77 by September 30, 2023, signaling a decrease in highly liquid assets relative to current liabilities. While a slight increase occurs toward June 30, 2025, reaching 0.94, the ratio consistently remains below the current ratio level, reflecting a more conservative measure of liquidity. This downward trend suggests tightening liquidity conditions excluding inventory.

Cash Ratio

The cash ratio demonstrates a more pronounced decline over the periods covered, beginning at 0.95 in March 31, 2020, and dropping to a low of 0.29 in September 30, 2024. Although a modest rebound takes place afterward, reaching 0.49 by June 30, 2025, the overall trajectory indicates a reduced cushion of cash and cash equivalents to meet short-term obligations. This decline might raise considerations regarding immediate liquidity adequacy.

Current Assets

The current assets display a fluctuating pattern over the analyzed periods. Initially, there was a peak near mid-2020, followed by a decline by the end of that year. The first half of 2021 indicated a gradual recovery, with assets increasing again toward late 2021. However, in 2022, current assets exhibited a generally declining trend until the end of that year. Early 2023 showed some instability, with assets slightly rising and falling throughout the year. Notably, the last quarters in 2024 and the first half of 2025 suggest a positive upward trend in current assets, reaching levels comparable to peaks observed earlier in the timeline.

Current Liabilities

Current liabilities experienced more volatility relative to current assets. Starting at a moderate level in early 2020, liabilities increased sharply by mid-2020. Afterward, they decreased somewhat but remained elevated through late 2021. The data from 2022 showed a decrease in liabilities midyear but a rebound toward the year's end. Through 2023 and into 2024, liabilities continued to fluctuate, with certain quarters reaching new highs compared to prior periods. In the first half of 2025, current liabilities rose noticeably, surpassing amounts recorded in earlier years.

Current Ratio

The current ratio, reflecting liquidity and the ability to meet short-term obligations, demonstrates a marked decreasing tendency over the full period. Early 2020 values were comfortably above 1.5, indicating solid short-term financial health. Yet, by late 2021 and during much of 2022 and 2023, the ratio declined, occasionally dipping near or below 1.2. This suggests a reduced cushion of current assets over current liabilities. The trend persists into 2024 and early 2025, with ratios hovering around or just above 1.2, indicating tightening liquidity conditions relative to earlier periods. Despite fluctuations in both assets and liabilities, the downward trend in the current ratio points to increasing pressure on the company’s short-term financial flexibility.

The analysis of the quarterly financial data reveals several notable trends concerning the liquidity position over the periods examined.

Total Quick Assets

The total quick assets, expressed in millions of US dollars, generally exhibit a fluctuating pattern. Starting at 26,612 in March 2020, they rose to a peak of 29,513 by June 2020, followed by fluctuations with periods of declines notably reaching a low around 18,640 in September 2022. Subsequently, there is a tendency towards stabilization and moderate recovery, with values reaching 25,018 by December 2025. This indicates variability in the liquid and near-liquid resources available across the timeline, with some recovery toward the end of the period.

Current Liabilities

Current liabilities have shown an increasing trend over the quarters. Beginning at 19,232 million in March 2020, there was an initial rise and some oscillation, but a consistent upward movement is noticeable, peaking at 27,528 million by December 2025. This suggests a growing short-term obligation position relative to assets, implying increased short-term financial commitments or operational demands.

Quick Ratio

The quick ratio presents a declining trend in liquidity relative to current liabilities. It starts at a healthy level of 1.38 in March 2020, showing minor volatility but predominantly decreasing over time. The ratio dips below 1.0 starting September 2021 and fluctuates around this mark thereafter, reaching a low of 0.77 in September 2023. Towards the final quarters, it slightly improves but remains below 1.0, ending at 0.91 in December 2025. This reflects a decreasing cushion of liquid assets available to cover current liabilities, indicating increasing liquidity risk over the analyzed timeframe.

In summary, the company's liquidity position has weakened over the analyzed periods, as evidenced by declining quick ratios coupled with rising current liabilities and variable quick asset levels. The gap between quick assets and current liabilities has narrowed, placing increased emphasis on close liquidity management going forward.

Total Cash Assets

Over the observed period, total cash assets exhibit a fluctuating but generally declining trend from the beginning values above 18 billion to lower levels around 7 to 13 billion in the later quarters. Notably, there is a significant dip between March 2022 and September 2022, where cash assets decreased from approximately 15 billion to just over 9 billion. A temporary recovery is seen in December 2023 reaching nearly 12 billion, following which there is another decline and fluctuation hovering mostly between 6.5 and 8 billion. The final quarters show an upward trend again, reaching above 13 billion by June 2025.

Current Liabilities

Current liabilities have mostly increased over the timeline, starting just below 20 billion and ending above 27 billion. There are periods of moderate volatility, with liabilities peaking around the end of 2024 and early 2025, showing consistent elevation relative to earlier periods. Despite some quarter-to-quarter fluctuations, the overall pattern is one of rising liabilities, indicating growing short-term financial obligations.

Cash Ratio

The cash ratio, which measures liquidity by comparing cash assets to current liabilities, shows a clear downward trend throughout the timeframe. Starting near 1.0 early in 2020, the ratio gradually declines and falls below 0.5 from the end of 2021 onward, reaching its lowest points below 0.3 during mid to late 2024. This declining trend suggests reduced ability to cover current liabilities using cash alone. Although modest improvements can be observed towards the end of the period, the ratio remains below 0.5, highlighting weakened short-term liquidity.

Summary

The data points to a scenario where cash reserves have diminished relative to the growing current liabilities, resulting in a weakened liquidity profile as reflected by the falling cash ratio. The company’s capacity to quickly meet short-term obligations with cash has lessened over time, especially from late 2021 through 2024, despite some signs of cash recovery in early 2025. The increase in current liabilities coupled with decreasing cash assets could signal increased reliance on other forms of financing or operational challenges affecting near-term cash availability.