Bristol-Myers Squibb Company (BMY)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-12,554,000	9,591,000	8,927,000	9,412,000	-5,471,000
Long-term debt	US$ in thousands	47,603,000	36,653,000	35,056,000	39,605,000	48,336,000
Total stockholders’ equity	US$ in thousands	16,335,000	29,430,000	31,061,000	35,946,000	37,822,000
Return on total capital		-19.63%	14.51%	13.50%	12.46%	-6.35%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-12,554,000K ÷ ($47,603,000K + $16,335,000K)
= -19.63%

The Return on Total Capital for Bristol-Myers Squibb Company has shown fluctuations over the years based on the provided data.

- As of December 31, 2020, the Return on Total Capital was -6.35%, indicating a negative return on the capital invested during that period.
- By December 31, 2021, the Return on Total Capital improved significantly to 12.46%, suggesting a more favorable return on the capital employed.
- The trend continued positively as of December 31, 2022, with the Return on Total Capital increasing to 13.50%, indicating continued efficiency in capital utilization.
- By December 31, 2023, the Return on Total Capital further improved to 14.51%, displaying continued growth in the company's ability to generate returns from its total capital.
- However, there was a significant decline in performance by December 31, 2024, with the Return on Total Capital dropping to -19.63%, reflecting a negative return on the total capital invested during that period.

Overall, while there have been fluctuations in the Return on Total Capital for Bristol-Myers Squibb Company, the trend has shown a general improvement from 2020 to 2023, before experiencing a sharp decline in 2024. It is important for stakeholders to evaluate the underlying reasons for these fluctuations to assess the company's efficiency in utilizing its total capital effectively.