Bristol-Myers Squibb Company (BMY)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-8,948,000	8,025,000	6,327,000	6,994,000	-9,015,000
Total stockholders’ equity	US$ in thousands	16,335,000	29,430,000	31,061,000	35,946,000	37,822,000
ROE		-54.78%	27.27%	20.37%	19.46%	-23.84%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-8,948,000K ÷ $16,335,000K
= -54.78%

The return on equity (ROE) of Bristol-Myers Squibb Company has shown significant fluctuation over the years based on the provided data.

- On December 31, 2020, the ROE was reported at -23.84%, indicating that the company generated negative returns on shareholders' equity during that period.

- By the end of December 31, 2021, the ROE improved to 19.46%, reflecting a positive return on equity, which suggests the company started to generate profit on shareholders' investments.

- The trend continued to show improvement in the following years, with ROE reaching 20.37% on December 31, 2022, and further increasing to 27.27% by December 31, 2023. This indicates a strengthening performance in utilizing shareholders' equity to generate profits.

- However, there was a notable downturn by December 31, 2024, with the ROE dropping to -54.78%, signifying a significant decline in generating returns on equity, possibly due to various factors impacting the company's financial performance.

In conclusion, while the ROE of Bristol-Myers Squibb Company has shown positive improvements in recent years, the significant fluctuations, especially the sharp decline in 2024, suggest the need for a closer examination of the company's financial strategies and performance to sustain and enhance shareholder value in the future.