Bristol-Myers Squibb Company (BMY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	29,430,000	31,061,000	35,946,000	37,822,000	51,598,000
ROE		27.27%	20.37%	19.46%	-23.84%	6.66%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $8,025,000K ÷ $29,430,000K
= 27.27%

The return on equity (ROE) of Bristol-Myers Squibb Co. has shown fluctuating trends over the past five years, ranging from -23.84% in 2020 to a peak of 27.27% in 2023. It is notable that the ROE turned negative in 2020, indicating that the company's net income was insufficient to cover its shareholders' equity. However, there has been a strong recovery since then, with significant improvements in the subsequent years.

The increasing trend in ROE from 2019 to 2023 suggests that Bristol-Myers Squibb Co. has been able to generate higher profits relative to its shareholders' equity. This indicates improved efficiency in utilizing equity capital to generate earnings for the company's investors. The sharp increase in ROE to 27.27% in 2023 indicates a particularly strong performance in that year.

Overall, the upward trajectory in ROE signifies that Bristol-Myers Squibb Co. has been effectively leveraging its equity to generate returns for shareholders in recent years, reflecting positively on the company's financial health and operational efficiency.