Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

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Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

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Short-term Activity Ratios (Summary)

Bristol-Myers Squibb Co., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover
Receivables turnover
Payables turnover
Working capital turnover
Average No. Days
Average inventory processing period
Add: Average receivable collection period
Operating cycle
Less: Average payables payment period
Cash conversion cycle

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).


Inventory Turnover
The inventory turnover ratio declined steadily from 5.68 in 2020 to a low of 4.02 in 2023, indicating slower inventory movement. However, there was a notable rebound to 5.46 in 2024, suggesting improved inventory efficiency in the most recent year.
Receivables Turnover
Receivables turnover exhibited a gradual decrease from 5.72 in 2020 to 4.93 in 2023, reflecting extended collection periods or slower conversion of receivables to cash. In 2024, there was a moderate recovery to 5.19, indicating some improvement in receivables management.
Payables Turnover
The payables turnover ratio declined consistently from 4.34 in 2020 to 3.28 in 2023, indicating a lengthening in the time taken to pay suppliers. In 2024, the ratio increased to 3.88, suggesting a partial reversal of the longer payment period trend.
Working Capital Turnover
Working capital turnover fluctuated over the period, beginning at 3.72 in 2020 and increasing modestly to 3.95 in 2021. It then surged sharply to 8.3 in 2022, before declining to 4.6 in 2023 and rising again to 7.79 in 2024. This volatility may reflect changes in working capital management or operational efficiency during these years.
Average Inventory Processing Period
The average inventory processing period lengthened from 64 days in 2020 to a peak of 91 days in 2023, evidencing slower inventory turnover. The period then shortened significantly to 67 days in 2024, which aligns with the improved inventory turnover ratio observed in that year.
Average Receivable Collection Period
Receivable collection days increased gradually from 64 days in 2020 to 74 days in 2023, indicating slower customer payments. This period decreased to 70 days in 2024, showing some recovery in collection efficiency.
Operating Cycle
The operating cycle expanded from 128 days in 2020 to a maximum of 165 days in 2023, reflecting combined effects of longer inventory and receivable periods. In 2024, the cycle shortened to 137 days, indicating improved operational processes.
Average Payables Payment Period
The payment period to suppliers lengthened significantly from 84 days in 2020 to 111 days in 2023, implying the company took longer to settle payables. In 2024, it was reduced to 94 days, signifying somewhat faster payment to suppliers.
Cash Conversion Cycle
The cash conversion cycle decreased from 44 days in 2020 to 34 days in 2021, then rose to 54 days in 2023, suggesting variability in the period cash is tied up in operations. The cycle then improved to 43 days in 2024, nearly returning to the initial level and reflecting enhanced cash flow management.

Turnover Ratios


Average No. Days


Inventory Turnover

Bristol-Myers Squibb Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of products sold, excludes amortization of acquired intangible assets
Inventories
Short-term Activity Ratio
Inventory turnover1
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Inventory Turnover, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Inventory turnover = Cost of products sold, excludes amortization of acquired intangible assets ÷ Inventories
= ÷ =

2 Click competitor name to see calculations.


Cost of Products Sold
The cost of products sold exhibited a declining trend from 2020 to 2021, decreasing from 11,773 million US dollars to 9,940 million US dollars. Subsequently, it showed a gradual increase over the next two years, reaching 10,693 million US dollars by the end of 2023. In 2024, there was a significant rise to 13,968 million US dollars, marking the highest value in the observed period.
Inventories
Inventory levels demonstrated a steady increase from 2,074 million US dollars in 2020 to 2,662 million US dollars in 2023. However, there was a slight decline in 2024, with inventories decreasing to 2,557 million US dollars. Despite this dip, inventory values in 2024 remained higher compared to the initial years of the period.
Inventory Turnover Ratio
The inventory turnover ratio declined consistently from 5.68 in 2020 to 4.02 by the end of 2023, indicating a slower rate of inventory movement over these years. In 2024, there was a notable rebound to 5.46, suggesting improved efficiency in managing inventory relative to cost of products sold after several years of decline.

Receivables Turnover

Bristol-Myers Squibb Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net product sales
Net trade receivables
Short-term Activity Ratio
Receivables turnover1
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Receivables Turnover, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Receivables turnover = Net product sales ÷ Net trade receivables
= ÷ =

2 Click competitor name to see calculations.


The analysis of the provided financial data reveals several notable trends in the company's performance and operational efficiency over the five-year period from 2020 to 2024.

Net Product Sales
Net product sales exhibited a general upward trend, increasing from US$41,321 million in 2020 to US$46,778 million in 2024. The highest sales figure was observed in 2024, reflecting a cumulative growth of approximately 13.2% over the five-year period. Despite a slight decline in sales in 2023 compared to 2022, the overall trajectory indicates resilient revenue generation with periodic fluctuations.
Net Trade Receivables
The balance of net trade receivables also showed an increasing pattern, rising from US$7,219 million in 2020 to US$9,012 million in 2024. This steady increase suggests a growing amount of credit sales or extended collection periods, matching the expansion observed in net product sales. The increase from 2023 to 2024 was modest, indicating a possible stabilization in receivables growth.
Receivables Turnover Ratio
The receivables turnover ratio demonstrated a declining trend from 5.72 in 2020 to 4.93 in 2023, implying a longer average collection period over these years. However, in 2024, the ratio improved to 5.19, suggesting enhanced efficiency in collecting receivables during the latest period. The initial decline could reflect either more lenient credit policies or challenges in collection, whereas the recent improvement might indicate tighter credit control or better cash flow management.

In summary, the company showed consistent growth in net product sales accompanied by an increase in net trade receivables. The efficiency of receivables collection deteriorated initially but showed signs of recovery in the most recent year. These dynamics highlight important aspects of revenue growth alongside evolving credit and collection practices.


Payables Turnover

Bristol-Myers Squibb Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Cost of products sold, excludes amortization of acquired intangible assets
Accounts payable
Short-term Activity Ratio
Payables turnover1
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Payables Turnover, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Payables turnover = Cost of products sold, excludes amortization of acquired intangible assets ÷ Accounts payable
= ÷ =

2 Click competitor name to see calculations.


The financial data indicates several notable trends over the five-year period ending in 2024. The cost of products sold, excluding amortization of acquired intangible assets, reveals an overall upward trajectory. Initially, there was a decrease from 11,773 million USD in 2020 to 9,940 million USD in 2021, followed by a slight rise in 2022 and 2023 to 10,137 million USD and 10,693 million USD respectively. However, in 2024, the cost surged significantly to 13,968 million USD, indicating a substantial increase in product costs during the final year of the period examined.

Accounts payable displayed a consistent increase across all years. Starting at 2,713 million USD in 2020, the value rose steadily to 3,602 million USD by 2024. This continuous growth suggests an increasing amount of obligations to suppliers and vendors over time, which aligns with the increase in cost of products sold, potentially reflecting larger purchase volumes or extended payment terms.

Regarding the payables turnover ratio, there is a noticeable fluctuation with a general decline from 4.34 in 2020 to a low of 3.28 in 2023. The ratio then experiences a recovery in 2024, climbing back up to 3.88. This metric indicates the frequency at which payables are paid during the period. The declining trend until 2023 could imply a slowdown in payment cycles or longer credit terms from suppliers. The rebound in 2024 suggests some improvement in payment efficiency or changes in credit terms.

Cost of Products Sold
Overall increasing trend with a marked spike in 2024.
Accounts Payable
Steady increase over the five-year period, reflecting rising liabilities.
Payables Turnover Ratio
Declining from 2020 to 2023, indicating slower payment cycles, followed by a recovery in 2024.

In summary, the financial data portrays rising costs and obligations, with some fluctuation in payment efficiency. These patterns may indicate changes in operational scale, supplier relations, or payment policies. The sharp increase in cost of products sold in the final year warrants further investigation to understand its drivers and implications for profitability and working capital management.


Working Capital Turnover

Bristol-Myers Squibb Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Current assets
Less: Current liabilities
Working capital
 
Net product sales
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Working Capital Turnover, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Working capital turnover = Net product sales ÷ Working capital
= ÷ =

2 Click competitor name to see calculations.


Working Capital
The working capital exhibited a fluctuating trend over the analyzed periods. It started at 11,112 million US dollars at the end of 2020, showing a slight increase to 11,394 million in 2021. However, there was a notable decline in 2022, with working capital decreasing to 5,383 million. This was followed by a partial recovery in 2023, reaching 9,508 million, before dropping again in 2024 to 6,006 million. The variability indicates instability in short-term liquidity management during these years.
Net Product Sales
Net product sales demonstrated a relatively stable performance with mild fluctuations. Sales increased from 41,321 million US dollars in 2020 to 45,055 million in 2021. A slight decrease occurred in 2022 to 44,671 million, with a further dip to 43,778 million in 2023. Nevertheless, sales showed resilience by rebounding to 46,778 million in 2024, the highest figure in the period reviewed. Overall, sales remained within a narrow range, suggesting a consistent demand and revenue generation capability.
Working Capital Turnover
The working capital turnover ratio experienced significant changes across the years. Starting at 3.72 in 2020, it saw a steady increase to 3.95 in 2021, followed by a sharp rise to 8.3 in 2022. The ratio then decreased to 4.6 in 2023 before climbing back up to 7.79 in 2024. The elevated turnover ratios in 2022 and 2024 imply more efficient use of working capital during those years, potentially linked to the sharp changes in the working capital balances. The fluctuations suggest volatility in operational efficiency related to short-term asset management.

Average Inventory Processing Period

Bristol-Myers Squibb Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover
Short-term Activity Ratio (no. days)
Average inventory processing period1
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Average Inventory Processing Period, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Inventory Turnover
The inventory turnover ratio exhibited a declining trend from 5.68 in 2020 to 4.02 in 2023, indicating a gradual reduction in the frequency with which inventory was sold and replaced during this period. However, in 2024, there was a notable recovery to 5.46, approaching the level observed in 2020. This suggests an improvement in inventory management or sales efficiency during the final year of the observed period.
Average Inventory Processing Period
The average inventory processing period, expressed as the number of days, increased steadily from 64 days in 2020 to a peak of 91 days in 2023. This reflects that inventory was held for progressively longer durations, implying slower turnover or potential challenges in inventory liquidation. In 2024, there was a significant decrease to 67 days, indicating a return to more efficient inventory processing times, nearly matching the level at the start of the period.

Average Receivable Collection Period

Bristol-Myers Squibb Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover
Short-term Activity Ratio (no. days)
Average receivable collection period1
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Average Receivable Collection Period, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Receivables Turnover
The receivables turnover ratio demonstrates a declining trend from 5.72 in 2020 to a low of 4.93 in 2023, followed by a slight recovery to 5.19 in 2024. This indicates that the company was progressively slower in collecting receivables during the period 2020 to 2023, though there was some improvement in the most recent year.
Average Receivable Collection Period
The average receivable collection period increased from 64 days in 2020 to a peak of 74 days in 2023, suggesting that the time taken to collect receivables lengthened over this period. In 2024, the collection period decreased to 70 days, aligning with the improvement in receivables turnover. The overall trend implies that the company faced increasing inefficiencies in receivables management until 2023, with some corrective measures evident in 2024.
Summary Insight
The inverse relationship observed between receivables turnover and collection period ratios reflects a deterioration in accounts receivable efficiency over the initial years, potentially signaling weaker credit control or slower customer payments. The modest improvement in the latest year suggests efforts to enhance collections or changes in credit policy. Monitoring these metrics moving forward will be critical to ensure sustained improvement in working capital management.

Operating Cycle

Bristol-Myers Squibb Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Short-term Activity Ratio
Operating cycle1
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Operating Cycle, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =

2 Click competitor name to see calculations.


Average Inventory Processing Period
The average inventory processing period shows a rising trend from 64 days in 2020 to a peak of 91 days in 2023, indicating an increasingly longer duration for inventory turnover during this period. However, in 2024, the period decreases significantly to 67 days, which suggests an improvement in inventory management or faster inventory processing compared to the previous year.
Average Receivable Collection Period
The average receivable collection period remained relatively stable from 64 days in 2020 to 65 days in 2021. Subsequently, it gradually increased to 74 days in 2023, pointing to a slower collection of receivables over these years. However, a slight improvement is observed in 2024, with the period decreasing to 70 days, suggesting a modest recovery in collection efficiency.
Operating Cycle
The operating cycle, which combines inventory processing and receivable collection, expanded steadily from 128 days in 2020 to 165 days in 2023. This indicates an overall lengthening of the time required to convert inventory and receivables into cash, potentially implying working capital inefficiencies during this time. In 2024, the operating cycle contracts notably to 137 days, reflecting an improvement in the company's operating efficiency and working capital turnover relative to 2023.

Average Payables Payment Period

Bristol-Myers Squibb Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover
Short-term Activity Ratio (no. days)
Average payables payment period1
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Average Payables Payment Period, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

2 Click competitor name to see calculations.


Payables Turnover
The payables turnover ratio has exhibited a declining trend from 4.34 in 2020 to 3.28 in 2023, indicating that the company was making payments more slowly or utilizing trade credit for a longer duration during this period. However, in 2024, there is a noticeable increase to 3.88, suggesting a faster payment cycle or a reduction in the use of supplier credit compared to the prior year.
Average Payables Payment Period
The average payables payment period has generally increased from 84 days in 2020 to a peak of 111 days in 2023, reflecting an extension in the time taken by the company to settle its payables. This trend aligns inversely with the decreasing payables turnover. In 2024, the payment period decreases substantially to 94 days, corresponding with the improved payables turnover ratio and indicating a shift toward quicker payment practices.
Overall Analysis
Over the examined period, the company exhibited a trend of extending its payables period, possibly as a working capital management strategy, which peaked in 2023. The subsequent reversal in 2024 suggests either a strategic decision to accelerate payments or changes in supplier agreements or cash management policies. This shift may impact the company's liquidity or supplier relations and warrants monitoring in future periods.

Cash Conversion Cycle

Bristol-Myers Squibb Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period
Average receivable collection period
Average payables payment period
Short-term Activity Ratio
Cash conversion cycle1
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc.
Amgen Inc.
Danaher Corp.
Eli Lilly & Co.
Gilead Sciences Inc.
Johnson & Johnson
Merck & Co. Inc.
Pfizer Inc.
Regeneron Pharmaceuticals Inc.
Thermo Fisher Scientific Inc.
Vertex Pharmaceuticals Inc.
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences
Cash Conversion Cycle, Industry
Health Care

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + =

2 Click competitor name to see calculations.


Average Inventory Processing Period
The average inventory processing period exhibited an overall upward trend from 64 days in 2020, peaking at 91 days in 2023, before decreasing to 67 days in 2024. This pattern suggests a lengthening in inventory holding time through 2023, potentially indicating slower inventory turnover or supply chain delays, followed by an improvement or efficiency gain in the most recent period.
Average Receivable Collection Period
The average receivable collection period showed a gradual increase from 64 days in 2020 to 74 days in 2023, with a slight reduction to 70 days in 2024. This indicates a modest elongation in the time taken to collect receivables over the years, suggesting either more lenient credit terms or slower payment by customers, with a minor reversal in the latest year.
Average Payables Payment Period
The average payables payment period rose significantly from 84 days in 2020 to a peak of 111 days in 2023, followed by a decline to 94 days in 2024. The extension indicates a longer duration before settling payables, which may reflect extended supplier credit or cash flow management strategies. The subsequent reduction in 2024 suggests a move towards faster payment or improved supplier relationships.
Cash Conversion Cycle
The cash conversion cycle showed variability, decreasing from 44 days in 2020 to 34 days in 2021, then increasing to 54 days in 2023 before dropping back to 43 days in 2024. This fluctuating pattern reflects changes in the efficiency of the company's working capital management, with the longer cycle in 2023 indicating slower cash recovery and the improvements in other years suggesting more efficient cash flow operations.