Stock Analysis on Net
Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

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Common-Size Income Statement

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Bristol-Myers Squibb Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net product sales
Alliance and other revenues
Revenues
Cost of products sold, excludes amortization of acquired intangible assets
Gross margin
Marketing, selling and administrative
Research and development
Acquired IPRD
Amortization of acquired intangible assets
Operating income (loss)
Interest expense
Royalty income, divestitures
Royalty and licensing income
Provision for restructuring
Investment income
Integration expenses
Litigation and other settlements
Acquisition expense
Intangible asset impairment
Equity investment gains (losses), net
Loss on debt redemption
Divestiture gains (losses)
Other
Other income (expense), net
Earnings (loss) before income taxes
Income tax provision
Net earnings (loss)
Noncontrolling interest
Net earnings (loss) attributable to BMS

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Revenue Composition
Net product sales have consistently represented the majority of revenues, fluctuating narrowly between approximately 96.8% and 97.3% over the five-year period. Alliance and other revenues, while smaller in proportion, showed a slight increase overall, peaking in 2022 at 3.22% before adjusting to 3.15% in 2024.
Cost of Products Sold and Gross Margin
The cost of products sold, excluding amortization of acquired intangible assets, experienced a reduction from 27.69% of revenues in 2020 to a low of 21.43% in 2021 but then increased steadily to 28.92% by 2024. Reflecting these changes, the gross margin improved significantly from 72.31% in 2020 to a peak of 78.57% in 2021, then gradually decreased to 71.08% in 2024, indicating overall pressure on cost efficiencies in recent periods.
Operating Expenses
Marketing, selling, and administrative expenses as a percentage of revenues showed a modest decline from 18.02% in 2020 to 16.58% in 2021, followed by a slight upward trend to 17.42% by 2024. Research and development expenses decreased steadily from 23.63% in 2020 to 20.60% in 2022, remained relatively stable in 2023, and then increased again to 23.10% in 2024. Acquired in-process research and development (IPRD) costs showed a sharp decline after 2020, dropping to below 3% from 2021 to 2023, but spiked back to 27.69% in 2024. Amortization of acquired intangible assets consistently decreased from 22.79% in 2020 to 18.37% in 2024.
Profitability and Income Measures
Operating income exhibited significant volatility, shifting from a negative 21.6% of revenues in 2020 to positive territory, peaking at 17.96% in 2022, then declining sharply back to a negative 15.5% in 2024. Earnings before income taxes showed a similar trend, turning from losses of 16.16% in 2020 to gains near 18.75% in 2023 before dropping to a loss of 17.35% in 2024. Net earnings attributable to the company followed this pattern, moving from negative 21.2% in 2020 to positive figures exceeding 17% in 2023, and then falling back to negative 18.53% in the final year.
Other Income and Expenses
Interest expense decreased from 3.34% in 2020 to a low of 2.59% in 2023, rising again to 4.03% in 2024. Royalty and licensing income generally increased, reaching a peak of 3.31% in 2023 but then fell to 1.52% in 2024. Integrated expenses declined steadily over the period, from 1.69% in 2020 to below 0.6% in the final years. Gains and losses related to equity investments and debt redemption showed inconsistencies, with equity investment gains turning into losses in 2022 and 2023, followed by a return to break-even by 2024.
Provision for Restructuring and Litigation
Provision for restructuring remained relatively low, fluctuating between 0.16% and 1.31%. Litigation and other settlements were generally minor, with varying net impacts ranging from slight gains to small charges across the years.
Taxation
The income tax provision declined noticeably from 5% of revenues in 2020 to less than 1.2% in the last two years, contributing to improved net income metrics in the positive-income years.
Summary of Trends and Insights
Overall, the data reveals fluctuations in profitability with a notable turnaround in 2021 through 2023, followed by a return to losses in 2024. This pattern is closely linked to significant shifts in cost structures, particularly in cost of products sold and acquired IPRD expenses. The increase in acquired IPRD costs alongside a rise in costs of products sold in 2024 negatively impacted margins and operating results. The reduction in amortization expense and stabilized marketing and R&D expenditures suggest some operational control, but these were insufficient to offset cost pressures faced in the latest period. Income tax benefits in the middle years corresponded with improved net profitability, but were insufficient to prevent the return to negative earnings in 2024. The variability in other income components and expenses, including interest and provisions for restructuring, suggest ongoing financial volatility and potential operational challenges.