Bristol-Myers Squibb Co. (NYSE:BMY)

The analysis of the financial data reveals several notable trends in goodwill, intangible assets, and related amortization over the five-year period ending December 31, 2024.

Goodwill

The goodwill balance remained relatively stable throughout the years, fluctuating slightly from $20,547 million in 2020 to $21,719 million in 2024. This suggests that there were moderate goodwill additions or impairments during the period, but no drastic changes occurred.

R&D Technology

This category only shows a value in 2024, with $1,980 million capitalized, indicating a new recognition or reclassification in that year. Prior years lacked data in this category, implying either absence of capitalization or a change in accounting or reporting policies.

Acquired Marketed Product Rights

This asset category shows a general upward trend, starting from $59,404 million in 2020, peaking at $63,076 million in 2023, and dipping slightly to $61,876 million in 2024. This reflects ongoing acquisitions or purchases of marketed product rights, enhancing the asset base.

Capitalized Software

Capitalized software balances increased from $1,325 million in 2020 to $1,555 million in 2022, followed by a slight dip to $1,497 million in 2023, and a minor increase to $1,499 million in 2024, indicating relatively stable investment in software infrastructure.

IPRD (In-Process Research and Development)

IPRD values fluctuated significantly, decreasing sharply from $6,130 million in 2020 to $3,750 million in 2021, rebounding to $6,560 million in 2022, dropping again to $3,710 million in 2023, and sharply increasing to $7,985 million in 2024. This pattern suggests a volatile investment or valuation approach toward in-process R&D, possibly reflecting variable acquisitions or impairments year-over-year.

Other Intangible Assets, Gross Carrying Amounts

This aggregate balance showed a modest increase from $66,859 million in 2020 to $73,340 million in 2024, with some fluctuations in between. The overall upward trend suggests ongoing additions to intangible assets, including those beyond goodwill and product rights.

Accumulated Amortization

Accumulated amortization presented a consistent increase in magnitude (a more negative number), moving from -$13,616 million in 2020 to -$50,033 million in 2024. This significant growth reflects ongoing amortization expense, reducing the net book value of intangible assets over time.

Other Intangible Assets, Net

The net intangible assets decreased substantially, declining from $53,243 million in 2020 to $23,307 million in 2024. The sharp reduction corresponds with rising accumulated amortization, indicating a substantial write-down of intangible asset values despite increases in gross carrying amounts.

Goodwill and Other Intangible Assets, Total

The total of goodwill and intangibles declined sharply from $73,790 million in 2020 to $45,026 million in 2024. This overall decrease is mainly driven by the marked reduction in net other intangible assets, which were partially offset by fairly stable goodwill levels.

In summary, while the company expanded some intangible asset categories, particularly acquired product rights and capitalized R&D technology in the latest year, the net value of other intangible assets declined due to substantial amortization. Goodwill remained relatively stable, which may indicate limited acquisition activity or effective impairment management. The pattern of fluctuating IPRD suggests selective investment or valuation volatility in research and development projects. Overall, the financial data signals a cautious approach to intangible asset capitalization and a significant amortization impact diminishing net intangible asset values over the period.

Reported Total Assets

There is a clear declining trend in reported total assets from 2020 through 2024. The value decreased from 118,481 million US dollars in 2020 to 92,603 million US dollars by 2024, representing an overall reduction of approximately 21.9%. The largest annual decrease occurred between 2021 and 2022, suggesting a period of significant asset reduction during that interval.

Adjusted Total Assets

The adjusted total assets, which exclude goodwill, exhibit a similar downward trend over the same period. Starting at 97,934 million US dollars in 2020, adjusted assets declined steadily each year to reach 70,884 million US dollars by 2024, a decline of about 27.6%. This sharper decline relative to reported assets indicates that goodwill adjustments have a substantial impact on the asset base.

Reported Total BMS Shareholders’ Equity

Reported shareholders’ equity shows a continuous decrease from 37,822 million US dollars in 2020 to 16,335 million US dollars in 2024. The decrease is substantial, totaling nearly 56.8% over five years. The equity declined each year, with the sharpest fall observed between 2023 and 2024, suggesting increasing pressures on the company's equity position in recent years.

Adjusted Total BMS Shareholders’ Equity

When adjusted for goodwill, shareholders’ equity exhibits an even more pronounced downward trend. Beginning at 17,275 million US dollars in 2020, adjusted equity steadily declined each year, culminating in a negative balance of -5,384 million US dollars by 2024. This negative equity position signals potential concerns regarding underlying net asset value after removing intangible assets such as goodwill and highlights issues related to asset impairment or accumulated losses.

Overall Analysis

The data demonstrates a consistent contraction in both total assets and shareholders’ equity over the five-year period, with adjusted figures reflecting a more pronounced decline than reported figures. The substantial reduction in adjusted equity culminating in negative figures suggests that intangible assets, mainly goodwill, constitute a significant portion of the company’s balance sheet. The negative adjusted equity implies potential risks regarding financial stability and solvency when goodwill is excluded. This downward trajectory in core financial metrics may warrant further investigation into asset quality, operational performance, or strategic changes implemented during the period.

The data reveals notable trends in the efficiency, leverage, and profitability metrics over the five-year period. Distinct differences also emerge when comparing reported and goodwill adjusted figures, illustrating the impact of asset adjustments on financial performance evaluation.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit an overall upward trend, indicating improved efficiency in using assets to generate sales. Reported turnover increased from 0.36 in 2020 to 0.52 in 2024, with a slight dip in 2023. Adjusted turnover shows a more pronounced rise from 0.43 in 2020 to 0.68 in 2024, maintaining stability between 2022 and 2023 before rising again.

Financial Leverage

Reported financial leverage remains relatively stable between 3.04 and 3.23 from 2020 to 2023, then sharply increases to 5.67 in 2024. The adjusted financial leverage is consistently higher, starting at 5.67 in 2020 and climbing steadily to 8.96 in 2023, with the 2024 value not available. This suggests a considerable reliance on debt or financial obligations when adjusted for goodwill.

Return on Equity (ROE)

Reported ROE shows substantial volatility, starting with a negative return of -23.84% in 2020, followed by positive growth reaching 27.27% in 2023, but then dramatically falling to -54.78% in 2024. The adjusted ROE, which excludes goodwill effects, exhibits a strong upward trajectory from -52.19% in 2020 to 97.14% in 2023, with the 2024 figure missing. This suggests underlying profitability improvements after adjusting for intangible assets, despite reported fluctuations.

Return on Assets (ROA)

Similar patterns are observed in ROA metrics. Reported ROA moves from -7.61% in 2020 to a peak of 8.43% in 2023, followed by a decline to -9.66% in 2024. Adjusted ROA, consistently lower than the reported counterparts in absolute terms, improves steadily from -9.21% in 2020 to 10.85% in 2023 before decreasing to -12.62% in 2024. The trends imply enhanced asset profitability when adjusted for goodwill, with notable deterioration in the latest year.

Overall, the data indicates improved asset turnover and profitability through most of the period until 2023, followed by a significant decline in 2024 across reported metrics. Adjusted figures generally depict stronger financial leverage and higher returns, highlighting the considerable influence of goodwill on financial statement interpretations. The sharp reversal in 2024 results warrants further investigation to understand underlying causes.

The data indicates a consistent decline in reported total assets over the five-year period. The reported total assets decreased from $118.5 billion in 2020 to approximately $92.6 billion in 2024. A similar downward trend is observable in the adjusted total assets, which fell from about $97.9 billion in 2020 to roughly $70.9 billion in 2024. This suggests a reduction in asset base when excluding goodwill adjustments.

Conversely, both reported and adjusted total asset turnover ratios exhibit an improving trend throughout the same period. The reported total asset turnover increased from 0.36 in 2020 to 0.52 in 2024, indicating enhanced efficiency in generating revenue from assets. The adjusted total asset turnover shows a more pronounced improvement, rising from 0.43 in 2020 to 0.68 in 2024. This marked increase in adjusted turnover suggests that the company's core asset utilization, excluding goodwill, has significantly improved over time.

The simultaneous decline in asset values combined with rising asset turnover ratios may imply strategic asset optimization and improved operational efficiency. The noteworthy increase in adjusted asset turnover highlights enhanced effectiveness in utilizing non-goodwill assets to drive business activity. Overall, the company appears to be managing its asset base more efficiently, generating higher revenues per asset unit despite a shrinking asset base.

The financial data over the five-year period reveals several notable trends in the company's asset base, equity position, and leverage ratios.

Total Assets

Reported total assets decreased steadily from US$118,481 million in 2020 to US$92,603 million in 2024, representing an overall decline of approximately 22%. Similarly, the adjusted total assets, which account for goodwill adjustments, mirrored this downward trajectory, falling from US$97,934 million in 2020 to US$70,884 million in 2024. This consistent reduction indicates a shrinking asset base over the analyzed time frame.

Shareholders’ Equity

Reported total shareholders’ equity experienced a continuous decline from US$37,822 million in 2020 to US$16,335 million in 2024, amounting to a reduction of over 56%. The adjusted equity figures, which exclude goodwill, depict an even more pronounced deterioration, dropping from US$17,275 million in 2020 to a negative US$5,384 million in 2024. The transition into negative adjusted equity by 2024 suggests substantial erosion of the company's net asset value when goodwill is excluded, reflecting potential impairments or accumulated losses.

Financial Leverage

The reported financial leverage ratio remained relatively stable between 3.04 and 3.23 from 2020 through 2023 but then surged significantly to 5.67 in 2024. In contrast, the adjusted financial leverage, which considers the goodwill adjustments, showed a rising trend throughout the period, moving from 5.67 in 2020 to 8.96 in 2023, with the 2024 value not reported. The upward trend in adjusted leverage indicates increasing reliance on debt financing relative to adjusted equity, suggesting rising financial risk. The sharp increase in reported leverage in 2024 aligns with the dramatic decline in reported equity, amplifying concerns about leverage sustainability.

In summary, the company has witnessed a persistent decline in both reported and adjusted asset and equity values, with adjusted equity turning negative by 2024. Concurrently, financial leverage measures have risen, particularly the adjusted leverage, which highlights growing financial risk. These patterns may signal challenges in maintaining capital adequacy and managing debt obligations, emphasizing the importance of close monitoring of financial stability moving forward.

The analysis of the financial data over the five-year period reveals several significant trends in the equity and performance metrics.

Total BMS Shareholders’ Equity

The reported total shareholders’ equity shows a declining trend from 37,822 million USD in 2020 to 16,335 million USD in 2024. This indicates a substantial reduction in the company's net assets attributable to shareholders over the period. The adjusted total shareholders’ equity, which accounts for goodwill, also exhibits a decreasing pattern, starting at 17,275 million USD in 2020 and moving into negative territory by 2024 at -5,384 million USD. This suggests impairment or write-downs related to goodwill and adjustments that negatively impact the book value of equity.

Return on Equity (ROE)

The reported ROE fluctuates markedly over the period. It begins at a negative -23.84% in 2020, improves to positive values through 2021 to 2023, peaking at 27.27% in 2023, before a dramatic fall to -54.78% in 2024. This volatility reflects significant swings in profitability relative to shareholders' equity. The adjusted ROE, accounting for goodwill adjustments, shows even more extreme variability, starting at -52.19% in 2020 and rising sharply to 97.14% in 2023. No data is provided for 2024. The adjusted ROE underscores a period of recovery and enhanced profitability before the latest data gap, likely influenced by accounting adjustments.

Overall Insights

The downward trend in both reported and adjusted shareholders’ equity suggests ongoing challenges in maintaining net asset value, potentially driven by operational losses, impairments, or capital returns. Despite this, the ROE figures highlight episodes of strong returns in the interim years, especially under adjusted figures, implying effective utilization of equity or positive one-time adjustments before the sharp downturn in 2024. The negative adjusted equity and declining ROE in 2024 may signal financial distress or significant write-offs impacting the company’s financial stability and return measures.

The analysis of the financial data reveals several notable trends in the company's total assets and return on assets (ROA) over the five-year period.

Total Assets

The reported total assets consistently decreased year over year, moving from US$118,481 million in 2020 to US$92,603 million in 2024. This represents a significant reduction, approximately 21.9% over the five-year period. Adjusted total assets, which likely exclude goodwill or other intangible elements, exhibited a similar downward trajectory, falling from US$97,934 million in 2020 to US$70,884 million in 2024. This decrease equates to roughly 27.6%, indicating an even more pronounced reduction when adjustments are considered. The consistent decline in both reported and adjusted total assets suggests a contraction in the company's asset base, which could be reflective of asset disposals, impairments, or other strategic changes affecting the balance sheet composition.

Return on Assets (ROA)

The reported ROA demonstrated considerable volatility during the period. Starting with a negative return of -7.61% in 2020, the metric improved significantly to positive values in the subsequent years, reaching 8.43% in 2023. However, in 2024, the reported ROA sharply declined to -9.66%, marking a considerable reversal and the lowest point in the five-year span. The adjusted ROA, which likely accounts for asset adjustments such as the removal of goodwill effects, followed a similar pattern but with amplified fluctuations. It began at -9.21% in 2020, rose more sharply to 10.85% in 2023, and then experienced a pronounced decrease to -12.62% in 2024. These oscillations in ROA indicate periods of improved operational profitability followed by significant deterioration, especially apparent in the final year. The divergence between reported and adjusted ROA values further suggests that adjustments may magnify the impact of operational changes on asset efficiency.

Overall, the data indicates a shrinking asset base coupled with highly variable profitability efficiency as measured by ROA. The trends culminate in a notable downturn in 2024, which may warrant further investigation into underlying business conditions or external factors influencing performance.