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, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (6,822) 3,071  5,095  2,189  4,456 
Invested capital2 90,149  100,285  18,973  16,538  17,735 
Performance Ratio
ROIC3 -7.57% 3.06% 26.85% 13.23% 25.13%
Benchmarks
ROIC, Competitors4
Abbott Laboratories 8.01% 6.47% 6.13% 0.03% 3.51%
AbbVie Inc. 4.49% 14.72% 15.25% 3.87% 11.87%
Amgen Inc. 20.35% 22.74% 37.39% 6.60% 27.25%
Eli Lilly & Co. 25.89% 22.93% 14.16% -4.90% 13.83%
Gilead Sciences Inc. 13.17% 18.93% 20.25% 68.44%
Illumina Inc. 12.08% 19.15% 19.42% 20.55% 15.77%
Johnson & Johnson 13.91% 12.94% 14.38% 3.55% 19.24%
Merck & Co. Inc. 11.66% 18.52% 12.10% 0.69% 5.02%
Pfizer Inc. 5.87% 14.19% 11.81% -4.78% 6.18%
Regeneron Pharmaceuticals Inc. 44.87% 34.24% 37.16% 29.41% 22.47%
Vertex Pharmaceuticals Inc. 37.13% 27.57% 16.16% 0.62% 0.28%
Zoetis Inc. 14.94% 15.96% 15.59% 13.93% 10.88%

Based on: 10-K (filing date: 2021-02-10), 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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -6,822 ÷ 90,149 = -7.57%

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 deteriorated from 2018 to 2019 and from 2019 to 2020.

Decomposition of ROIC

Bristol-Myers Squibb Co., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2020 -7.57% = -12.65% × 0.47 × 100.00%
Dec 31, 2019 3.06% = 21.63% × 0.26 × 54.30%
Dec 31, 2018 26.85% = 26.91% × 1.19 × 83.91%
Dec 31, 2017 13.23% = 26.03% × 1.26 × 40.47%
Dec 31, 2016 25.13% = 31.63% × 1.10 × 72.53%

Based on: 10-K (filing date: 2021-02-10), 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).

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 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (6,822) 3,071  5,095  2,189  4,456 
Add: Cash operating taxes2 1,445  2,584  977  3,220  1,688 
Net operating profit before taxes (NOPBT) (5,377) 5,655  6,072  5,408  6,145 
 
Revenues 42,518  26,145  22,561  20,776  19,427 
Profitability Ratio
OPM3 -12.65% 21.63% 26.91% 26.03% 31.63%
Benchmarks
OPM, Competitors4
Abbott Laboratories 16.05% 14.97% 11.67% 11.07% 12.18%
AbbVie Inc. 13.66% 30.01% 19.46% 30.71% 34.32%
Amgen Inc. 38.71% 46.69% 50.23% 50.31% 48.00%
Eli Lilly & Co. 30.98% 24.91% 15.94% 9.01% 15.95%
Gilead Sciences Inc. 28.73% 41.64% 55.87% 59.42%
Illumina Inc. 19.37% 30.23% 27.22% 39.36% 24.75%
Johnson & Johnson 20.16% 21.00% 22.50% 23.33% 27.69%
Merck & Co. Inc. 19.13% 26.21% 21.47% 17.70% 12.62%
Pfizer Inc. 19.53% 35.42% 23.50% 23.75% 18.27%
Regeneron Pharmaceuticals Inc. 46.12% 33.76% 38.20% 34.45% 31.23%
Vertex Pharmaceuticals Inc. 50.94% 33.47% 21.74% 2.78% 2.86%
Zoetis Inc. 32.90% 31.81% 32.17% 30.87% 25.67%

Based on: 10-K (filing date: 2021-02-10), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Revenues
= 100 × -5,377 ÷ 42,518 = -12.65%

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 deteriorated from 2018 to 2019 and from 2019 to 2020.

Turnover of Capital (TO)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Revenues 42,518  26,145  22,561  20,776  19,427 
Invested capital1 90,149  100,285  18,973  16,538  17,735 
Efficiency Ratio
TO2 0.47 0.26 1.19 1.26 1.10
Benchmarks
TO, Competitors3
Abbott Laboratories 0.57 0.55 0.52 0.42 0.46
AbbVie Inc. 0.44 0.53 0.98 0.62 0.53
Amgen Inc. 0.63 0.59 0.89 0.90 0.68
Eli Lilly & Co. 1.00 1.04 0.95 1.02 0.93
Gilead Sciences Inc. 0.69 0.61 1.04 1.49
Illumina Inc. 0.66 0.71 0.84 0.77 0.83
Johnson & Johnson 0.84 0.85 0.81 0.72 0.85
Merck & Co. Inc. 0.84 0.87 0.86 0.81 0.75
Pfizer Inc. 0.40 0.43 0.53 0.51 0.43
Regeneron Pharmaceuticals Inc. 1.03 1.21 1.08 1.20 1.45
Vertex Pharmaceuticals Inc. 0.76 0.85 0.79 0.79 0.57
Zoetis Inc. 0.58 0.64 0.62 0.71 0.72

Based on: 10-K (filing date: 2021-02-10), 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).

1 Invested capital. See details »

2 2020 Calculation
TO = Revenues ÷ Invested capital
= 42,518 ÷ 90,149 = 0.47

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 2018 to 2019 but then slightly improved from 2019 to 2020.

Effective Cash Tax Rate (CTR)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 (6,822) 3,071  5,095  2,189  4,456 
Add: Cash operating taxes2 1,445  2,584  977  3,220  1,688 
Net operating profit before taxes (NOPBT) (5,377) 5,655  6,072  5,408  6,145 
Tax Rate
CTR3 45.70% 16.09% 59.53% 27.47%
Benchmarks
CTR, Competitors4
Abbott Laboratories 12.92% 21.15% -1.36% 99.37% 37.12%
AbbVie Inc. 25.34% 7.43% 19.97% 79.78% 34.90%
Amgen Inc. 15.91% 17.97% 16.67% 85.49% 16.15%
Eli Lilly & Co. 16.37% 11.34% 6.98% 153.07% 6.91%
Gilead Sciences Inc. 33.35% 25.30% 65.27% 22.94%
Illumina Inc. 5.55% 10.66% 14.61% 31.76% 23.65%
Johnson & Johnson 17.72% 27.17% 20.74% 78.78% 18.53%
Merck & Co. Inc. 27.35% 19.04% 34.59% 95.19% 47.06%
Pfizer Inc. 25.53% 6.34% 4.78% 139.36% 21.23%
Regeneron Pharmaceuticals Inc. 5.71% 16.35% 10.01% 28.60% 50.27%
Vertex Pharmaceuticals Inc. 4.34% 3.62% 5.81% 72.05% 83.04%
Zoetis Inc. 21.37% 21.17% 22.25% 36.23% 41.44%

Based on: 10-K (filing date: 2021-02-10), 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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,445 ÷ -5,377 =

4 Click competitor name to see calculations.