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.
Peer comparison
Dec 31, 2023