Return on Capital (ROC)
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, comparison to benchmarks
| 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
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
| 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
| 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
| 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.