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Bristol-Myers Squibb Co. (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

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,466  1,324  4,119  1,003  2,037 
Invested capital2 19,613  17,075  19,044  16,043  18,784 
Performance Ratio
ROIC3 27.87% 7.76% 21.63% 6.25% 10.84%

Based on: 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), 10-K (filing date: 2015-02-13).

1 NOPAT. See details »

2 Invested capital. See details »

3 2018 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,466 ÷ 19,613 = 27.87%

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.