Microsoft Excel LibreOffice Calc

Bristol-Myers Squibb Co. (BMY)


Analysis of Income Taxes

Advanced level


Accounting Policy on Income Taxes

The provision for income taxes includes income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recognized to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment including the long-range forecast of future taxable income and the evaluation of tax planning initiatives. Adjustments to the deferred tax valuation allowances are made to earnings in the period when such assessments are made.

Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement.

Source: 10-K (filing date: 2019-02-25).


Income Tax Expense (Benefit)

Bristol-Myers Squibb Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
U.S. 485  2,782  1,144  337  334 
Non-U.S. 450  364  468  456  560 
Current 935  3,146  1,612  793  894 
U.S. 29  1,063  (101) (394) (403)
Non-U.S. 57  (53) (103) 47  (139)
Deferred 86  1,010  (204) (347) (542)
Provision for income taxes 1,021  4,156  1,408  446  352 

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Bristol-Myers Squibb Co.’s current increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Bristol-Myers Squibb Co.’s deferred increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Bristol-Myers Squibb Co.’s provision for income taxes increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Effective Income Tax Rate (EITR)

Bristol-Myers Squibb Co., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
U.S. statutory Federal income tax rate 21.00% 35.00% 35.00% 35.00% 35.00%
Deferred tax remeasurement 0.00% 5.60% 0.00% 0.00% 0.00%
Global intangible low taxed income (GILTI) 1.60% 0.00% 0.00% 0.00% 0.00%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland -3.40% -10.90% -7.50% -25.80% -21.40%
U.S. tax effect of capital losses 0.00% 0.00% 0.00% 0.00% -15.20%
U.S. Federal valuation allowance 2.00% 0.00% -0.50% -4.00% 0.00%
U.S. Federal, state and foreign contingent tax matters -0.90% 1.40% 1.50% 2.70% 9.60%
U.S. Federal research based credits -2.30% -2.80% -2.40% -6.40% -5.40%
Goodwill allocated to divestitures 0.00% 0.10% 0.60% 1.20% 8.80%
U.S. Branded Prescription Drug Fee 0.30% 1.00% 0.90% 2.10% 3.50%
Non-deductible R&D charges 0.30% 5.20% 1.70% 17.80% 2.20%
Puerto Rico excise tax -2.60% -2.60% -2.20% -2.70% -1.20%
Domestic manufacturing deduction 0.00% -1.50% -2.10% -0.80% 0.00%
State and local taxes, net of valuation allowance 1.10% 1.50% 0.40% 0.80% 0.80%
Foreign and other 0.90% -1.90% -1.60% 1.60% -1.90%
Effective tax rate, before deemed repatriation transition tax 18.00% 30.10% 23.80% 21.50% 14.80%
Deemed repatriation transition tax -0.90% 50.90% 0.00% 0.00% 0.00%
Effective tax rate 17.10% 81.00% 23.80% 21.50% 14.80%

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Item Description The company
Effective tax rate, before deemed repatriation transition tax Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Bristol-Myers Squibb Co.’s effective tax rate, before deemed repatriation transition tax increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Components of Deferred Tax Assets and Liabilities

Bristol-Myers Squibb Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Foreign net operating loss carryforwards 2,978  2,872  2,945  3,090  3,473 
State net operating loss and credit carryforwards 121  143  114  324  337 
U.S. Federal net operating loss and credit carryforwards 67  99  156  173  161 
Deferred income 188  212  764  1,009  1,163 
Milestone payments and license fees 552  386  534  560  440 
Pension and postretirement benefits 26  131  358  462  467 
Intercompany profit and other inventory items 670  651  1,241  607  531 
Other foreign deferred tax assets 327  312  188  172  202 
Share-based compensation 54  60  114  122  95 
Internal transfer of intellectual property —  —  629  635  247 
Other 352  280  308  438  981 
Deferred tax assets 5,335  5,146  7,351  7,592  8,097 
Valuation allowance (3,193) (2,827) (3,078) (3,534) (4,259)
Deferred tax assets net of valuation allowance 2,142  2,319  4,273  4,058  3,838 
Depreciation (61) (11) (125) (105) (128)
Acquired intangible assets (220) (216) (344) (338) (390)
Goodwill and other (533) (527) (855) (802) (832)
Deferred tax liabilities (814) (754) (1,324) (1,245) (1,350)
Deferred tax assets (liabilities), net 1,328  1,565  2,949  2,813  2,488 

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Bristol-Myers Squibb Co.’s deferred tax assets decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Deferred tax assets net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Bristol-Myers Squibb Co.’s deferred tax assets net of valuation allowance decreased from 2016 to 2017 and from 2017 to 2018.
Deferred tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Bristol-Myers Squibb Co.’s deferred tax assets (liabilities), net decreased from 2016 to 2017 and from 2017 to 2018.

Deferred Tax Assets and Liabilities, Classification

Bristol-Myers Squibb Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Deferred income tax assets, current —  —  —  —  1,644 
Deferred income tax assets, non-current 1,371  1,610  2,996  2,844  915 
Deferred income tax liabilities, current (included in Liabilities related to assets held-for-sale or Income taxes payable) 25  —  —  —  11 
Deferred income tax liabilities, non-current (included in Income taxes payable) 18  45  47  31  60 

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Item Description The company
Deferred income tax assets, non-current Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Bristol-Myers Squibb Co.’s deferred income tax assets, non-current decreased from 2016 to 2017 and from 2017 to 2018.
Deferred income tax liabilities, non-current (included in Income taxes payable) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Bristol-Myers Squibb Co.’s deferred income tax liabilities, non-current (included in Income taxes payable) decreased from 2016 to 2017 and from 2017 to 2018.

Adjustments to Financial Statements: Removal of Deferred Taxes

Bristol-Myers Squibb Co., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Current Assets
Current assets (as reported) 17,160  14,854  13,704  10,415  14,608 
Less: Current deferred tax assets, net —  —  —  —  1,644 
Current assets (adjusted) 17,160  14,854  13,704  10,415  12,964 
Adjustment to Total Assets
Total assets (as reported) 34,986  33,551  33,707  31,748  33,749 
Less: Current deferred tax assets, net —  —  —  —  1,644 
Less: Noncurrent deferred tax assets, net 1,371  1,610  2,996  2,844  915 
Total assets (adjusted) 33,615  31,941  30,711  28,904  31,190 
Adjustment to Current Liabilities
Current liabilities (as reported) 10,654  9,563  8,841  8,017  8,461 
Less: Current deferred tax liabilities, net 25  —  —  —  11 
Current liabilities (adjusted) 10,629  9,563  8,841  8,017  8,450 
Adjustment to Total Liabilities
Total liabilities (as reported) 20,859  21,704  17,360  17,324  18,766 
Less: Current deferred tax liabilities, net 25  —  —  —  11 
Less: Noncurrent deferred tax liabilities, net 18  45  47  31  60 
Total liabilities (adjusted) 20,816  21,659  17,313  17,293  18,695 
Adjustment to Total Bristol-Myers Squibb Company Shareholders’ Equity
Total Bristol-Myers Squibb Company shareholders’ equity (as reported) 14,031  11,741  16,177  14,266  14,852 
Less: Net deferred tax assets (liabilities) 1,328  1,565  2,949  2,813  2,488 
Total Bristol-Myers Squibb Company shareholders’ equity (adjusted) 12,703  10,176  13,228  11,453  12,364 
Adjustment to Net Earnings Attributable To BMS
Net earnings attributable to BMS (as reported) 4,920  1,007  4,457  1,565  2,004 
Add: Deferred income tax expense (benefit) 86  1,010  (204) (347) (542)
Net earnings attributable to BMS (adjusted) 5,006  2,017  4,253  1,218  1,462 

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).


Bristol-Myers Squibb Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Bristol-Myers Squibb Co., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current Ratio
Reported current ratio 1.61 1.55 1.55 1.30 1.73
Adjusted current ratio 1.61 1.55 1.55 1.30 1.53
Net Profit Margin
Reported net profit margin 21.81% 4.85% 22.94% 9.45% 12.62%
Adjusted net profit margin 22.19% 9.71% 21.89% 7.36% 9.21%
Total Asset Turnover
Reported total asset turnover 0.64 0.62 0.58 0.52 0.47
Adjusted total asset turnover 0.67 0.65 0.63 0.57 0.51
Financial Leverage
Reported financial leverage 2.49 2.86 2.08 2.23 2.27
Adjusted financial leverage 2.65 3.14 2.32 2.52 2.52
Return on Equity (ROE)
Reported ROE 35.07% 8.58% 27.55% 10.97% 13.49%
Adjusted ROE 39.41% 19.82% 32.15% 10.63% 11.82%
Return on Assets (ROA)
Reported ROA 14.06% 3.00% 13.22% 4.93% 5.94%
Adjusted ROA 14.89% 6.31% 13.85% 4.21% 4.69%

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Bristol-Myers Squibb Co.’s adjusted current ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co.’s adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co.’s adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co.’s adjusted financial leverage ratio increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Bristol-Myers Squibb Co.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Bristol-Myers Squibb Co., Financial Ratios: Reported vs. Adjusted


Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Current assets 17,160  14,854  13,704  10,415  14,608 
Current liabilities 10,654  9,563  8,841  8,017  8,461 
Liquidity Ratio
Current ratio1 1.61 1.55 1.55 1.30 1.73
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 17,160  14,854  13,704  10,415  12,964 
Adjusted current liabilities 10,629  9,563  8,841  8,017  8,450 
Liquidity Ratio
Adjusted current ratio2 1.61 1.55 1.55 1.30 1.53

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 17,160 ÷ 10,654 = 1.61

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 17,160 ÷ 10,629 = 1.61

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Bristol-Myers Squibb Co.’s adjusted current ratio improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to BMS 4,920  1,007  4,457  1,565  2,004 
Revenues 22,561  20,776  19,427  16,560  15,879 
Profitability Ratio
Net profit margin1 21.81% 4.85% 22.94% 9.45% 12.62%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to BMS 5,006  2,017  4,253  1,218  1,462 
Revenues 22,561  20,776  19,427  16,560  15,879 
Profitability Ratio
Adjusted net profit margin2 22.19% 9.71% 21.89% 7.36% 9.21%

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Net profit margin = 100 × Net earnings attributable to BMS ÷ Revenues
= 100 × 4,920 ÷ 22,561 = 21.81%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to BMS ÷ Revenues
= 100 × 5,006 ÷ 22,561 = 22.19%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co.’s adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Revenues 22,561  20,776  19,427  16,560  15,879 
Total assets 34,986  33,551  33,707  31,748  33,749 
Activity Ratio
Total asset turnover1 0.64 0.62 0.58 0.52 0.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 22,561  20,776  19,427  16,560  15,879 
Adjusted total assets 33,615  31,941  30,711  28,904  31,190 
Activity Ratio
Adjusted total asset turnover2 0.67 0.65 0.63 0.57 0.51

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 22,561 ÷ 34,986 = 0.64

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 22,561 ÷ 33,615 = 0.67

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co.’s adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 34,986  33,551  33,707  31,748  33,749 
Total Bristol-Myers Squibb Company shareholders’ equity 14,031  11,741  16,177  14,266  14,852 
Solvency Ratio
Financial leverage1 2.49 2.86 2.08 2.23 2.27
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 33,615  31,941  30,711  28,904  31,190 
Adjusted total Bristol-Myers Squibb Company shareholders’ equity 12,703  10,176  13,228  11,453  12,364 
Solvency Ratio
Adjusted financial leverage2 2.65 3.14 2.32 2.52 2.52

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 Financial leverage = Total assets ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 34,986 ÷ 14,031 = 2.49

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Bristol-Myers Squibb Company shareholders’ equity
= 33,615 ÷ 12,703 = 2.65

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co.’s adjusted financial leverage ratio increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to BMS 4,920  1,007  4,457  1,565  2,004 
Total Bristol-Myers Squibb Company shareholders’ equity 14,031  11,741  16,177  14,266  14,852 
Profitability Ratio
ROE1 35.07% 8.58% 27.55% 10.97% 13.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to BMS 5,006  2,017  4,253  1,218  1,462 
Adjusted total Bristol-Myers Squibb Company shareholders’ equity 12,703  10,176  13,228  11,453  12,364 
Profitability Ratio
Adjusted ROE2 39.41% 19.82% 32.15% 10.63% 11.82%

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 ROE = 100 × Net earnings attributable to BMS ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 100 × 4,920 ÷ 14,031 = 35.07%

2 Adjusted ROE = 100 × Adjusted net earnings attributable to BMS ÷ Adjusted total Bristol-Myers Squibb Company shareholders’ equity
= 100 × 5,006 ÷ 12,703 = 39.41%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Bristol-Myers Squibb Co.’s adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to BMS 4,920  1,007  4,457  1,565  2,004 
Total assets 34,986  33,551  33,707  31,748  33,749 
Profitability Ratio
ROA1 14.06% 3.00% 13.22% 4.93% 5.94%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to BMS 5,006  2,017  4,253  1,218  1,462 
Adjusted total assets 33,615  31,941  30,711  28,904  31,190 
Profitability Ratio
Adjusted ROA2 14.89% 6.31% 13.85% 4.21% 4.69%

Based on: 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-12), 10-K (filing date: 2015-02-13).

2018 Calculations

1 ROA = 100 × Net earnings attributable to BMS ÷ Total assets
= 100 × 4,920 ÷ 34,986 = 14.06%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to BMS ÷ Adjusted total assets
= 100 × 5,006 ÷ 33,615 = 14.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co.’s adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.