Bristol-Myers Squibb Company (BMY)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	95,159,000	91,263,000	93,489,000	94,281,000	96,820,000	98,196,000	100,357,000	103,034,000	109,314,000	110,893,000	110,797,000	112,435,000	118,481,000	125,536,000	128,076,000	129,285,000	129,944,000	57,433,000	55,163,000	34,834,000
Total stockholders’ equity	US$ in thousands	29,430,000	28,998,000	31,973,000	31,824,000	31,061,000	32,671,000	32,600,000	31,580,000	35,946,000	37,213,000	36,808,000	37,605,000	37,822,000	50,158,000	49,094,000	49,911,000	51,598,000	17,648,000	16,049,000	15,218,000
Financial leverage ratio		3.23	3.15	2.92	2.96	3.12	3.01	3.08	3.26	3.04	2.98	3.01	2.99	3.13	2.50	2.61	2.59	2.52	3.25	3.44	2.29

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $95,159,000K ÷ $29,430,000K
= 3.23

The financial leverage ratio for Bristol-Myers Squibb Co. has shown fluctuation over the past eight quarters, ranging from a low of 2.92 in Q2 2023 to a high of 3.26 in Q1 2022. This ratio indicates the proportion of the company's assets that are financed through debt rather than equity.

The decreasing trend from Q1 2022 to Q2 2023 suggests that the company has been reducing its reliance on debt to finance its operations and investments. This could be a strategic move to improve the company's financial stability and flexibility, as excessive leverage can increase financial risk, especially in times of economic uncertainty.

However, the recent increase in Q4 2023 compared to the previous quarter may indicate a shift in the company's capital structure towards higher debt levels. It is important for investors and stakeholders to monitor this trend closely to assess the potential impact on the company's financial health and risk profile.

Overall, a financial leverage ratio of over 3 indicates that Bristol-Myers Squibb Co. has a higher proportion of debt in its capital structure compared to equity. While some level of leverage is common and can enhance returns, it is essential for the company to manage its debt levels prudently to maintain long-term financial sustainability.