Bristol-Myers Squibb Company (BMY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.23% | 37.71% | 38.37% | 33.15% | 72.31% |
| Operating profit margin | -25.99% | -20.64% | -22.29% | -36.94% | -3.33% |
| Pretax margin | -17.38% | 18.72% | 16.67% | 17.42% | -16.21% |
| Net profit margin | -18.53% | 17.83% | 13.71% | 15.08% | -21.20% |
Based on the provided data, Bristol-Myers Squibb Company's profitability ratios have exhibited fluctuations over the years:
1. Gross Profit Margin:
- The gross profit margin has shown a decline from 72.31% in December 2020 to 34.23% in December 2024. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin has also decreased significantly from -3.33% in December 2020 to -25.99% in December 2024. This implies that the company's profitability from core operational activities has worsened over the years.
3. Pretax Margin:
- The pretax margin has been volatile, with a negative margin in 2020, turning positive in 2021 and 2022, and then reverting to negative in 2024. This suggests fluctuating levels of profitability before accounting for taxes.
4. Net Profit Margin:
- The net profit margin displays a similar pattern to the pretax margin, moving from negative to positive territory until a dip to -18.53% in December 2024. This metric reflects the company's bottom-line profitability after all expenses, including taxes.
Overall, the declining trend in gross profit margin and the negative operating profit margins raise concerns about Bristol-Myers Squibb's ability to generate profits from its operations. The fluctuations in pretax and net profit margins further underscore the company's inconsistent profitability performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -13.56% | -9.76% | -10.63% | -15.67% | -1.20% |
| Return on assets (ROA) | -9.66% | 8.43% | 6.53% | 6.40% | -7.61% |
| Return on total capital | -19.63% | 14.51% | 13.50% | 12.46% | -6.35% |
| Return on equity (ROE) | -54.78% | 27.27% | 20.37% | 19.46% | -23.84% |
Bristol-Myers Squibb Company's profitability ratios show fluctuations over the period from December 31, 2020, to December 31, 2024.
1. Operating return on assets (Operating ROA):
- The Operating ROA reflects the company's operating performance in generating profits from its assets. The trend shows a decline from -1.20% in 2020 to -15.67% in 2021, followed by improvements to -9.76% in 2023 but a subsequent decrease to -13.56% in 2024. The company struggled to efficiently utilize its assets to generate operating income.
2. Return on assets (ROA):
- ROA indicates the overall profitability of the company relative to its total assets. The ratio improved from -7.61% in 2020 to a positive 8.43% in 2023, suggesting better management of assets to generate profits. However, it dipped to -9.66% in 2024, indicating a decline in profitability relative to the assets employed.
3. Return on total capital:
- This ratio evaluates the company's ability to generate profits from the total capital invested in the business. There was a significant increase in return on total capital from 12.46% in 2021 to 14.51% in 2023, indicating efficient use of total capital. However, there was a sharp decline to -19.63% in 2024, showcasing a negative return on the total capital employed.
4. Return on equity (ROE):
- ROE measures the return earned by the company for its shareholders' equity. The trend fluctuated notably over the period, with 2023 showing the highest return of 27.27%. However, there was a substantial decrease to -54.78% in 2024, indicating significant challenges in generating profits for shareholders' equity.
In summary, Bristol-Myers Squibb Company experienced varying levels of profitability over the analyzed period, with improvements in some ratios but also facing challenges in maintaining consistent profitability across all metrics.