Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Bristol-Myers Squibb Co. (NYSE:BMY)

Return on Capital (ROC)

Advanced level

Return on Invested Capital (ROIC)

Bristol-Myers Squibb Co., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,482  5,363  2,096  4,399  1,351 
Invested capital2 100,285  18,973  16,538  17,735  14,454 
Performance Ratio
ROIC3 2.47% 28.27% 12.68% 24.80% 9.35%
Benchmarks
ROIC, Competitors4
Abbott Laboratories 6.53% 6.19% 0.03% 3.53% 9.18%
AbbVie Inc. 14.72% 15.25% 3.87% 11.87% 13.20%
Amgen Inc. 22.74% 37.39% 6.60% 27.25% 20.99%
Biogen Inc. 42.59% 35.40% 23.16% 28.10% 32.03%
Eli Lilly & Co. 22.93% 14.16% -4.90% 13.83% 6.75%
Gilead Sciences Inc. 13.17% 18.93% 20.25% 68.44% 68.63%
Illumina Inc. 19.15% 19.42% 20.55% 15.77% 16.47%
Johnson & Johnson 12.94% 14.38% 3.55% 19.24% 21.25%
Merck & Co. Inc. 18.75% 12.05% 0.69% 5.02% 5.48%
Pfizer Inc. 14.16% 11.82% -4.78% 6.18% 7.46%
Regeneron Pharmaceuticals Inc. 34.24% 37.16% 29.41% 22.47% 37.54%
Vertex Pharmaceuticals Inc. 27.62% 16.16% 0.62% 0.28% -19.23%
Zoetis Inc. 15.96% 15.59% 13.93% 10.88% 7.81%

Based on: 10-K (filing date: 2020-02-24), 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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,482 ÷ 100,285 = 2.47%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Bristol-Myers Squibb Co.’s ROIC improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Decomposition of ROIC

Bristol-Myers Squibb Co., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2019 2.47% = 18.78% × 0.26 × 50.55%
Dec 31, 2018 28.27% = 28.42% × 1.19 × 83.65%
Dec 31, 2017 12.68% = 25.35% × 1.26 × 39.81%
Dec 31, 2016 24.80% = 31.17% × 1.10 × 72.64%
Dec 31, 2015 9.35% = 13.17% × 1.15 × 61.94%

Based on: 10-K (filing date: 2020-02-24), 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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2019 year is the decrease in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Bristol-Myers Squibb Co., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,482  5,363  2,096  4,399  1,351 
Add: Cash operating taxes2 2,427  1,048  3,170  1,657  830 
Net operating profit before taxes (NOPBT) 4,909  6,411  5,266  6,056  2,181 
 
Revenues 26,145  22,561  20,776  19,427  16,560 
Profitability Ratio
OPM3 18.78% 28.42% 25.35% 31.17% 13.17%
Benchmarks
OPM, Competitors4
Abbott Laboratories 14.97% 11.67% 11.07% 12.18% 14.96%
AbbVie Inc. 30.01% 19.46% 30.71% 34.32% 32.29%
Amgen Inc. 46.69% 50.23% 50.31% 48.00% 43.83%
Biogen Inc. 49.60% 44.64% 43.44% 44.68% 45.53%
Eli Lilly & Co. 24.91% 15.94% 9.01% 15.95% 12.94%
Gilead Sciences Inc. 28.73% 41.64% 55.87% 59.42% 71.65%
Illumina Inc. 30.23% 27.22% 39.36% 24.75% 28.89%
Johnson & Johnson 21.00% 22.50% 23.33% 27.69% 28.57%
Merck & Co. Inc. 26.55% 21.38% 17.70% 12.62% 13.33%
Pfizer Inc. 35.34% 23.53% 23.75% 18.27% 21.52%
Regeneron Pharmaceuticals Inc. 33.76% 38.20% 34.45% 31.23% 39.36%
Vertex Pharmaceuticals Inc. 33.47% 21.74% 2.78% 2.86% -41.40%
Zoetis Inc. 31.81% 32.17% 30.87% 25.67% 18.43%

Based on: 10-K (filing date: 2020-02-24), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × 4,909 ÷ 26,145 = 18.78%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Bristol-Myers Squibb Co.’s OPM improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Turnover of Capital (TO)

Bristol-Myers Squibb Co., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Revenues 26,145  22,561  20,776  19,427  16,560 
Invested capital1 100,285  18,973  16,538  17,735  14,454 
Efficiency Ratio
TO2 0.26 1.19 1.26 1.10 1.15
Benchmarks
TO, Competitors3
Abbott Laboratories 0.55 0.52 0.42 0.46 0.67
AbbVie Inc. 0.53 0.98 0.62 0.53 0.52
Amgen Inc. 0.59 0.89 0.90 0.68 0.60
Biogen Inc. 1.02 1.02 0.98 0.89 0.97
Eli Lilly & Co. 1.04 0.95 1.02 0.93 0.90
Gilead Sciences Inc. 0.69 0.61 1.04 1.49 1.17
Illumina Inc. 0.71 0.84 0.77 0.83 0.81
Johnson & Johnson 0.85 0.81 0.72 0.85 0.94
Merck & Co. Inc. 0.87 0.86 0.81 0.75 0.63
Pfizer Inc. 0.43 0.53 0.51 0.43 0.46
Regeneron Pharmaceuticals Inc. 1.21 1.08 1.20 1.45 1.57
Vertex Pharmaceuticals Inc. 0.86 0.79 0.79 0.57 0.39
Zoetis Inc. 0.64 0.62 0.71 0.72 0.68

Based on: 10-K (filing date: 2020-02-24), 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).

1 Invested capital. See details »

2 2019 Calculation
TO = Revenues ÷ Invested capital
= 26,145 ÷ 100,285 = 0.26

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Bristol-Myers Squibb Co.’s TO deteriorated from 2017 to 2018 and from 2018 to 2019.

Effective Cash Tax Rate (CTR)

Bristol-Myers Squibb Co., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,482  5,363  2,096  4,399  1,351 
Add: Cash operating taxes2 2,427  1,048  3,170  1,657  830 
Net operating profit before taxes (NOPBT) 4,909  6,411  5,266  6,056  2,181 
Tax Rate
CTR3 49.45% 16.35% 60.19% 27.36% 38.06%
Benchmarks
CTR, Competitors4
Abbott Laboratories 21.15% -1.36% 99.37% 37.12% 8.57%
AbbVie Inc. 7.43% 19.97% 79.78% 34.90% 21.63%
Amgen Inc. 17.97% 16.67% 85.49% 16.15% 20.26%
Biogen Inc. 15.53% 22.35% 45.79% 29.12% 27.39%
Eli Lilly & Co. 11.34% 6.98% 153.07% 6.91% 41.90%
Gilead Sciences Inc. 33.35% 25.30% 65.27% 22.94% 18.16%
Illumina Inc. 10.66% 14.61% 31.76% 23.65% 29.58%
Johnson & Johnson 27.17% 20.74% 78.78% 18.53% 20.84%
Merck & Co. Inc. 19.06% 34.64% 95.19% 47.06% 34.62%
Pfizer Inc. 6.31% 4.80% 139.36% 21.23% 24.39%
Regeneron Pharmaceuticals Inc. 16.35% 10.01% 28.60% 50.27% 39.16%
Vertex Pharmaceuticals Inc. 3.62% 5.81% 72.05% 83.04%
Zoetis Inc. 21.17% 22.25% 36.23% 41.44% 38.13%

Based on: 10-K (filing date: 2020-02-24), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,427 ÷ 4,909 = 49.45%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Bristol-Myers Squibb Co.’s CTR decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.