Bristol-Myers Squibb Company (BMY)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	8,025,000	6,327,000	6,994,000	-9,015,000	3,439,000
Total assets	US$ in thousands	95,159,000	96,820,000	109,314,000	118,481,000	129,944,000
ROA		8.43%	6.53%	6.40%	-7.61%	2.65%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $8,025,000K ÷ $95,159,000K
= 8.43%

The return on assets (ROA) of Bristol-Myers Squibb Co. has shown varying trends over the past five years. In 2023, the ROA increased to 8.43%, indicating that the company generated $0.0843 in profit for every dollar of assets it owns. This represents an improvement compared to the previous year when the ROA was 6.53%.

Looking back further, in 2021, the ROA was relatively stable at 6.40%. However, in 2020, there was a significant decline in ROA to -7.61%, implying that the company incurred losses greater than the value of its assets. This negative ROA suggests inefficiencies or financial challenges faced by the company during that year.

On a positive note, in 2019, the ROA was 2.65%, indicating a moderate profitability level relative to its asset base.

Overall, the recent increase in ROA is a positive indicator of improved efficiency in generating profits from the company's assets. Monitoring ROA over time can provide insights into the company's operational performance and financial health.