Financial statement analysis and common stock valuation

Analysis of Geographic Areas

Bristol-Myers Squibb Co. operates in 2 regions: United States and International.

• Area Asset Turnover
• Revenues
• Property, plant and equipment, net

Analysis of Profitability Ratios
Quarterly Data

Measures the income of Bristol-Myers Squibb Co. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Evaluates revenues and output generated by the Bristol-Myers Squibb Co. assets. Operating performance ratios describe the relationship between the Bristol-Myers Squibb Co. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Payables Payment Period

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Bristol-Myers Squibb Co. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Bristol-Myers Squibb Co. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Bristol-Myers Squibb Co. balance sheet.

Analysis of Debt

• Total Debt (Carrying Amount)
• Total Debt (Fair Value)
• Weighted-average Interest Rate on Debt

Common-Size Balance Sheet: Assets
Quarterly Data

Assets components shown as percentage of total assets.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Bristol-Myers Squibb Co. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Common-Size Income Statement

Income statement components (revenues and expenses) shown as percentage of total sales.

Income Statement

The income statement (statement of earnings) reports on the performance of Bristol-Myers Squibb Co., the result of its operating activities.

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV