Common-Size Income Statement
Quarterly Data
Bristol-Myers Squibb Co., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The common-size income statement reveals several noteworthy trends in the company’s financial performance between March 2021 and December 2025. Revenues are consistently dominated by net product sales, averaging approximately 97% of total revenues throughout the period. Alliance and other revenues contribute a smaller, but fluctuating, portion, ranging from approximately 2.5% to 4.3% of total revenues. A significant fluctuation is observed in the cost of products sold, particularly in December 2022 and December 2024, which warrants further investigation. Overall, the company demonstrates considerable variability in profitability, with notable shifts in operating income and net earnings.
- Revenue Composition
- Net product sales consistently represent the vast majority of revenues, exhibiting relative stability between 95.70% and 97.74% over the observed period. Alliance and other revenues show more volatility, peaking at 4.30% in December 2022 and reaching a low of 2.48% in March 2021. This suggests a reliance on core product sales, with supplemental revenue streams subject to change.
- Gross Margin
- Gross margin fluctuates between 67.24% and 80.34%. A general downward trend is apparent in the later periods, decreasing from a high of 80.34% in December 2021 to 67.24% in December 2025. This decline coincides with increases in the cost of products sold and may indicate pricing pressures or increased production costs.
- Operating Expenses
- Selling, general, and administrative expenses remain relatively stable, generally ranging between 15.03% and 19.95% of revenues. Research and development expenses also exhibit consistency, typically falling between 19.40% and 25.64% of revenues. However, ‘Acquired IPRD’ shows significant volatility, with a particularly large negative impact in December 2024 (-109.14%), and a substantial impact in June 2025 (-12.29%). This suggests potentially large write-downs or impairments related to acquired intangible assets.
- Profitability
- Operating income as a percentage of revenues demonstrates considerable variation, ranging from a low of 3.89% in December 2022 to a high of 29.54% in March 2025. Net earnings show a similar pattern, with a significant loss reported in December 2024 (-100.39%) and a return to profitability in subsequent periods. The substantial loss in December 2024 appears heavily influenced by the large negative impact from ‘Acquired IPRD’ and amortization of acquired intangible assets. Net earnings attributable to BMS generally mirror the overall net earnings trend.
- Tax Rate
- The income tax rate fluctuates, ranging from a benefit of 4.29% in December 2021 to an expense of 7.52% in September 2025. This variability may be due to changes in tax laws, geographic distribution of earnings, or the realization of tax benefits.
In conclusion, the company’s financial performance is characterized by stable revenue sources, fluctuating gross margins, and significant variability in profitability. The substantial negative impact from ‘Acquired IPRD’ and amortization of acquired intangible assets, particularly in December 2024, requires further scrutiny. The observed trends suggest a need for careful cost management and a thorough evaluation of acquired intangible assets.
AI Ask an analyst for more