Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Return on Capital (ROC)

Microsoft Excel

Return on Invested Capital (ROIC)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,869 4,571 6,656 (6,822) 3,071
Invested capital2 67,562 71,720 80,284 90,149 100,285
Performance Ratio
ROIC3 8.69% 6.37% 8.29% -7.57% 3.06%
Benchmarks
ROIC, Competitors4
AbbVie Inc. 4.83% 14.05% 12.89% 4.30% 14.74%
Amgen Inc. 11.15% 16.11% 15.93% 20.35% 22.74%
Eli Lilly & Co. 10.52% 17.77% 19.28% 25.89% 22.93%
Gilead Sciences Inc. 11.75% 8.28% 14.43% 1.26% 12.92%
Johnson & Johnson 8.98% 14.12% 19.20% 13.91% 12.94%
Merck & Co. Inc. -1.02% 19.14% 18.87% 11.66% 18.52%
Pfizer Inc. -0.82% 28.01% 20.98% 5.87% 14.19%
Regeneron Pharmaceuticals Inc. 26.80% 29.90% 72.83% 44.66% 34.05%
Thermo Fisher Scientific Inc. 5.98% 7.76% 9.32% 10.70% 6.69%
Vertex Pharmaceuticals Inc. 19.93% 22.66% 23.86% 37.13% 27.57%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,869 ÷ 67,562 = 8.69%

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. ROIC deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Decomposition of ROIC

Bristol-Myers Squibb Co., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2023 8.69% = 21.81% × 0.67 × 59.79%
Dec 31, 2022 6.37% = 19.38% × 0.64 × 51.09%
Dec 31, 2021 8.29% = 20.31% × 0.58 × 70.66%
Dec 31, 2020 -7.57% = -12.65% × 0.47 × 100.00%
Dec 31, 2019 3.06% = 21.63% × 0.26 × 54.30%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 increase in return on invested capital (ROIC) over 2023 year is the decrease in effective cash tax rate (CTR).


Operating Profit Margin (OPM)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,869 4,571 6,656 (6,822) 3,071
Add: Cash operating taxes2 3,947 4,376 2,764 1,445 2,584
Net operating profit before taxes (NOPBT) 9,816 8,948 9,419 (5,377) 5,655
 
Revenues 45,006 46,159 46,385 42,518 26,145
Profitability Ratio
OPM3 21.81% 19.38% 20.31% -12.65% 21.63%
Benchmarks
OPM, Competitors4
AbbVie Inc. 14.58% 26.77% 27.06% 13.19% 30.02%
Amgen Inc. 40.00% 35.35% 32.55% 38.71% 46.69%
Eli Lilly & Co. 20.00% 24.98% 22.91% 30.98% 24.91%
Gilead Sciences Inc. 29.07% 25.11% 34.43% 10.83% 27.94%
Johnson & Johnson 17.15% 22.65% 24.38% 20.16% 21.00%
Merck & Co. Inc. 4.63% 30.22% 30.60% 19.13% 26.21%
Pfizer Inc. 1.43% 38.86% 30.18% 19.53% 35.42%
Regeneron Pharmaceuticals Inc. 32.80% 40.59% 58.09% 46.15% 33.80%
Thermo Fisher Scientific Inc. 15.91% 18.33% 23.79% 24.12% 17.61%
Vertex Pharmaceuticals Inc. 38.69% 46.55% 36.91% 50.94% 33.47%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × 9,816 ÷ 45,006 = 21.81%

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. OPM deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Turnover of Capital (TO)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Revenues 45,006 46,159 46,385 42,518 26,145
Invested capital1 67,562 71,720 80,284 90,149 100,285
Efficiency Ratio
TO2 0.67 0.64 0.58 0.47 0.26
Benchmarks
TO, Competitors3
AbbVie Inc. 0.80 0.71 0.59 0.44 0.53
Amgen Inc. 0.38 0.62 0.60 0.63 0.59
Eli Lilly & Co. 1.16 1.17 1.08 1.00 1.04
Gilead Sciences Inc. 0.59 0.59 0.57 0.48 0.70
Johnson & Johnson 0.86 0.83 0.95 0.84 0.85
Merck & Co. Inc. 0.86 0.80 0.69 0.84 0.87
Pfizer Inc. 0.38 0.91 0.93 0.40 0.43
Regeneron Pharmaceuticals Inc. 1.10 0.99 1.48 1.03 1.20
Thermo Fisher Scientific Inc. 0.50 0.54 0.49 0.53 0.49
Vertex Pharmaceuticals Inc. 0.75 0.68 0.81 0.76 0.85

Based on: 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), 10-K (reporting date: 2019-12-31).

1 Invested capital. See details »

2 2023 Calculation
TO = Revenues ÷ Invested capital
= 45,006 ÷ 67,562 = 0.67

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. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

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

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,869 4,571 6,656 (6,822) 3,071
Add: Cash operating taxes2 3,947 4,376 2,764 1,445 2,584
Net operating profit before taxes (NOPBT) 9,816 8,948 9,419 (5,377) 5,655
Tax Rate
CTR3 40.21% 48.91% 29.34% 45.70%
Benchmarks
CTR, Competitors4
AbbVie Inc. 58.42% 25.72% 18.70% 26.24% 7.42%
Amgen Inc. 27.52% 27.01% 18.93% 15.91% 17.97%
Eli Lilly & Co. 54.68% 39.42% 22.30% 16.37% 11.34%
Gilead Sciences Inc. 31.23% 44.33% 25.84% 76.01% 34.29%
Johnson & Johnson 39.03% 25.17% 17.54% 17.72% 27.17%
Merck & Co. Inc. 125.66% 20.99% 10.42% 27.35% 19.04%
Pfizer Inc. 252.75% 20.44% 25.02% 25.53% 6.34%
Regeneron Pharmaceuticals Inc. 25.49% 25.84% 15.22% 5.72% 16.36%
Thermo Fisher Scientific Inc. 24.94% 21.94% 19.99% 15.79% 21.66%
Vertex Pharmaceuticals Inc. 30.87% 28.16% 19.91% 4.34% 3.62%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 3,947 ÷ 9,816 = 40.21%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Bristol-Myers Squibb Co. CTR increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.