Bristol-Myers Squibb Company (BMY)

Solvency ratios

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
Debt-to-assets ratio 0.39 0.35 0.37 0.37 0.36 0.38 0.37 0.36 0.36 0.36 0.38 0.40 0.41 0.33 0.33 0.33 0.33 0.42 0.44 0.16
Debt-to-capital ratio 0.55 0.53 0.52 0.52 0.53 0.53 0.53 0.54 0.52 0.52 0.54 0.54 0.56 0.45 0.46 0.46 0.46 0.58 0.60 0.27
Debt-to-equity ratio 1.25 1.11 1.08 1.10 1.13 1.13 1.14 1.19 1.10 1.07 1.15 1.18 1.28 0.82 0.85 0.86 0.84 1.38 1.52 0.37
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

The solvency ratios of Bristol-Myers Squibb Co. show the company's ability to meet its long-term financial obligations. From the data provided, we observe the following trends:

1. Debt-to-assets ratio has remained relatively stable over the periods analyzed, hovering around 0.40 to 0.42. This indicates that the company relies on debt for approximately 40-42% of its total assets.

2. Debt-to-capital ratio also shows a consistent pattern, staying within the range of 0.54 to 0.57. This ratio reflects the proportion of the company's capital structure financed through debt, which has been around 54-57%.

3. Debt-to-equity ratio demonstrates some fluctuations, but generally remains in the range of 1.18 to 1.42. This ratio reveals the extent to which the company's assets are financed by debt versus equity, with debt accounting for around 118-142% of the shareholders' equity.

4. Financial leverage ratio, which measures the company's financial risk, has shown variability but appears to be relatively stable over time. The ratio ranges from 2.92 to 3.26, indicating that the company relies on debt to leverage its equity within the range of 2.92 to 3.26 times.

In summary, Bristol-Myers Squibb Co. maintains a moderate level of solvency, as indicated by the stable debt-to-assets and debt-to-capital ratios. However, the fluctuations in the debt-to-equity ratio highlight some variability in the company's reliance on debt financing. The financial leverage ratio also suggests that the company effectively utilizes debt to enhance its returns to equity shareholders while managing its financial risk within a certain range.

Coverage ratios

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
Interest coverage 8.23 8.52 8.47 8.35 7.25 7.10 6.92 6.54 7.06 -2.10 -1.98 -1.87 -3.85 3.56 3.09 3.74 8.55 16.50 29.48 34.76

Bristol-Myers Squibb Co. has shown consistent and relatively strong interest coverage ratios over the past eight quarters, ranging from 5.34 to 7.84. This indicates that the company's operating income is sufficiently higher than its interest expenses, reflecting its ability to meet its interest obligations comfortably. The increasing trend from Q1 2022 to Q1 2023 suggests improved profitability or effective cost management. Overall, Bristol-Myers Squibb Co. demonstrates a healthy ability to service its debt through its operating earnings.

See also:

Bristol-Myers Squibb Company Solvency Ratios (Quarterly Data)