Bristol-Myers Squibb Company (BMY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 9,591,000 | 8,927,000 | 9,412,000 | -5,471,000 | 5,610,000 |
| Long-term debt | US$ in thousands | 36,653,000 | 35,056,000 | 39,605,000 | 48,336,000 | 43,387,000 |
| Total stockholders’ equity | US$ in thousands | 29,430,000 | 31,061,000 | 35,946,000 | 37,822,000 | 51,598,000 |
| Return on total capital | 14.51% | 13.50% | 12.46% | -6.35% | 5.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $9,591,000K ÷ ($36,653,000K + $29,430,000K)
= 14.51%
Bristol-Myers Squibb Co.'s return on total capital has shown fluctuations over the past five years. In 2023, its return on total capital was 11.84%, a slight decrease from the previous year's 12.94%. However, it remains higher than the figures reported in 2021, 2020, and 2019, which were 9.17%, 2.46%, and 6.01% respectively. This indicates that the company has been able to generate profit relative to the total capital employed, albeit with varying levels of efficiency. Further analysis is needed to understand the factors influencing these fluctuations and to assess the company's overall performance in utilizing its total capital effectively.
Peer comparison
Dec 31, 2023