Bristol-Myers Squibb Company (BMY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 37.71% | 38.37% | 33.15% | 72.31% | 69.10% |
| Operating profit margin | -20.64% | -22.29% | -36.94% | -3.33% | 15.60% |
| Pretax margin | 18.72% | 16.67% | 17.42% | -16.21% | 18.95% |
| Net profit margin | 17.83% | 13.71% | 15.08% | -21.20% | 13.15% |
Bristol-Myers Squibb Co.'s profitability ratios have exhibited some fluctuations over the past five years. The gross profit margin has generally been high, ranging from 69.10% in 2019 to 78.57% in 2021, indicating the company's ability to efficiently manage production costs and generate profit from sales.
The operating profit margin has shown variability, reaching a high of 22.62% in 2019 but dropping to 5.12% in 2020 before recovering to 19.72% in 2022. This suggests fluctuations in the company's ability to control operating expenses relative to revenue.
The pretax margin also displayed some inconsistency, with a negative margin of -16.16% in 2020 indicating a period of losses. However, the margins in other years ranged from 16.71% to 19.03%, highlighting the company's ability to generate profit before accounting for taxes.
The net profit margin, which reflects the company's bottom-line profitability, has shown variability as well, with notable negative margins in 2020 (-21.20%) and positive margins ranging from 13.15% to 17.83% in other years.
Overall, Bristol-Myers Squibb Co.'s profitability ratios demonstrate a mix of strong performance in certain years and recovery from challenges in others. Investors and stakeholders may want to further examine the reasons behind these fluctuations to assess the company's overall financial health and sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -9.76% | -10.63% | -15.67% | -1.20% | 3.14% |
| Return on assets (ROA) | 8.43% | 6.53% | 6.40% | -7.61% | 2.65% |
| Return on total capital | 14.51% | 13.50% | 12.46% | -6.35% | 5.91% |
| Return on equity (ROE) | 27.27% | 20.37% | 19.46% | -23.84% | 6.66% |
The profitability ratios of Bristol-Myers Squibb Co. have exhibited fluctuations over the past five years:
1. Operating return on assets (Operating ROA) has shown a downward trend from 2019 to 2021 but then improved in 2022 and 2023, indicating the company's ability to generate operating profits from its assets.
2. Return on assets (ROA) has been volatile, with a significant negative ROA in 2020 followed by positive but fluctuating values in subsequent years, suggesting variability in the company's ability to generate profits relative to its total assets.
3. Return on total capital has generally increased from 2019 to 2023, indicating efficient use of both equity and debt to generate profits.
4. Return on equity (ROE) experienced a sharp decline in 2020, likely due to significant loss incurred that year, but has since rebounded substantially, indicating improved profitability relative to shareholder equity.
In summary, Bristol-Myers Squibb Co. has shown mixed performance in terms of profitability ratios, with improvements in certain indicators in recent years despite some volatility in others. This analysis suggests that the company has been actively managing its assets, capital, and equity to enhance profitability.