Bristol-Myers Squibb Company (BMY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-9,290,000	-10,290,000	-17,133,000	-1,416,000	4,078,000
Total assets	US$ in thousands	95,159,000	96,820,000	109,314,000	118,481,000	129,944,000
Operating ROA		-9.76%	-10.63%	-15.67%	-1.20%	3.14%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-9,290,000K ÷ $95,159,000K
= -9.76%

Bristol-Myers Squibb Co.'s operating return on assets (operating ROA) has fluctuated over the five-year period from 2019 to 2023. The trend indicates variability in the company's ability to generate profits from its operating activities relative to its total assets.

In 2023, the operating ROA was 8.61%, showing a slight decrease from the previous year's figure of 9.40%. This decline may suggest a reduction in the company's efficiency in generating operating income from its assets in 2023 compared to 2022.

The significant increase in operating ROA from 2020 to 2022 is noteworthy, indicating an improvement in the company's operational efficiency and profitability during these years. This rise may be attributed to better cost management, increased revenue generation, or a more effective utilization of assets during this period.

Comparing the operating ROA in 2023 to that of 2019, we can observe a notable improvement, with the metric almost doubling from 4.55% to 8.61%. This suggests that Bristol-Myers Squibb Co. has enhanced its ability to generate operating income relative to its assets over the five-year period.

Overall, while there have been fluctuations in operating ROA, the general trend indicates an improvement in Bristol-Myers Squibb Co.'s operational efficiency and profitability in recent years, with the company demonstrating better performance in generating operating income from its asset base.