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Bristol-Myers Squibb Co. (NYSE:BMY)

Return on Capital (ROC)

Advanced level

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)

Bristol-Myers Squibb Co., ROIC calculation

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%

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%

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.