Bristol-Myers Squibb Co. (NYSE:BMY)

The financial ratios presented demonstrate varying trends over the five-year period. Generally, adjusted ratios reveal a more conservative financial picture than reported figures, primarily due to adjustments impacting profitability and leverage. Asset turnover shows a consistent, albeit modest, improvement, while liquidity remains relatively stable. However, leverage ratios and profitability metrics exhibit more pronounced fluctuations.

Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit an upward trend, increasing from 0.42 and 0.43 in 2021 to 0.52 and 0.57 in 2025, respectively. This suggests a gradual improvement in the efficiency with which assets are used to generate revenue. The difference between reported and adjusted values remains consistently small.

Liquidity

The reported and adjusted current ratios remain identical across all periods. The ratio fluctuates between 1.25 and 1.52, indicating a generally stable short-term liquidity position. A slight dip to 1.25 in 2022 and 2024 is observed, but recovers to 1.26 by 2025.

Leverage

Debt to equity and debt to capital ratios show a notable increase from 2021 to 2024, with adjusted figures being consistently lower than reported values. The adjusted debt to equity ratio increases from 1.16 in 2021 to 3.98 in 2024 before decreasing to 3.43 in 2025. Similarly, the adjusted debt to capital ratio rises from 0.54 to 0.80 over the same period, then declines slightly to 0.77. This indicates increasing financial leverage, peaking in 2024, followed by a modest reduction in 2025. The difference between reported and adjusted values widens significantly in later years, suggesting adjustments related to debt recognition or classification.

Financial leverage also demonstrates a similar pattern, increasing from 2.75 to 6.87 (adjusted) between 2021 and 2024, then decreasing to 6.17 in 2025. This reinforces the observation of increasing, then slightly decreasing, reliance on financial leverage.

Profitability

Reported net profit margin experiences significant volatility, moving from 15.08% in 2021 to -18.53% in 2024, before recovering to 14.64% in 2025. The adjusted net profit margin exhibits a similar trend, though with more pronounced declines, reaching -21.91% in 2024 and recovering to 12.11% in 2025. The adjustments consistently result in lower profit margins, indicating that certain items are being added back to reported net income.

Return on equity (ROE) mirrors the volatility observed in net profit margin. Reported ROE declines sharply to -54.78% in 2024, then rebounds to 38.19% in 2025. The adjusted ROE shows an even more dramatic decline, reaching -82.27% in 2024, before recovering to 42.52% in 2025.

Return on assets (ROA) also displays significant fluctuations, with reported ROA falling to -9.66% in 2024 and recovering to 7.83% in 2025. The adjusted ROA exhibits a similar pattern, reaching -11.97% in 2024 and 6.89% in 2025. These trends align with the observed changes in net profit margin.

In summary, the period is characterized by increasing leverage, peaking in 2024, and substantial volatility in profitability metrics, particularly in 2024. The adjustments applied consistently present a more conservative view of the company’s financial performance, especially concerning profitability and leverage. The modest improvement in asset turnover suggests some efficiency gains, but these are overshadowed by the larger trends in leverage and profitability.

The period between December 31, 2021, and December 31, 2025, demonstrates fluctuating revenues alongside a consistent decline in total assets. This analysis focuses on the trends observed in the reported and adjusted total asset turnover ratios.

Revenues

Revenues experienced a slight decrease from US$46,385 million in 2021 to US$46,159 million in 2022, followed by a more substantial decrease to US$45,006 million in 2023. A recovery is then observed, with revenues increasing to US$48,300 million in 2024 and remaining relatively stable at US$48,194 million in 2025.

Total Assets

Total assets exhibited a consistent downward trend throughout the analyzed period. Beginning at US$109,314 million in 2021, assets decreased to US$96,820 million in 2022, US$95,159 million in 2023, US$92,603 million in 2024, and finally reached US$90,038 million in 2025.

Reported Total Asset Turnover

The reported total asset turnover ratio showed an initial increase from 0.42 in 2021 to 0.48 in 2022. This was followed by a slight decrease to 0.47 in 2023, and then a continued increase to 0.52 in 2024 and 0.54 in 2025. This suggests increasing efficiency in asset utilization despite the overall decline in asset base.

Adjusted Total Assets

Adjusted total assets mirrored the trend of reported total assets, decreasing from US$107,896 million in 2021 to US$84,718 million in 2025. The magnitude of the decrease was consistent with the decrease in reported total assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also increased over the period, though with slightly different magnitudes than the reported ratio. It rose from 0.43 in 2021 to 0.48 in 2022, 0.49 in 2023, 0.55 in 2024, and peaked at 0.57 in 2025. The adjusted ratio consistently remained slightly higher than the reported ratio throughout the period, indicating that the adjustments to total assets resulted in a marginally more favorable turnover metric. The increasing trend suggests improved efficiency in generating revenue from the adjusted asset base.

In summary, while revenues experienced some volatility, the consistent decline in total assets was accompanied by a steady increase in both the reported and adjusted total asset turnover ratios. This indicates that the company is becoming more efficient in utilizing its assets to generate revenue, even as the overall asset base shrinks.

The adjusted current ratio remained consistent with the reported current ratio across the observed period, from 2021 through 2025. Both ratios exhibited a similar pattern of fluctuation, suggesting the adjustments made to current assets did not materially alter the company’s short-term liquidity position as measured by this metric.

Overall Trend

The adjusted current ratio began at 1.52 in 2021, decreased to 1.25 in 2022, increased to 1.43 in 2023, and then stabilized at 1.25 in 2024 and 1.26 in 2025. This indicates a period of initial decline followed by a partial recovery, ultimately settling at a level slightly below the starting point.

Year-over-Year Changes

A decrease in the adjusted current ratio was observed from 2021 to 2022. This was followed by an increase from 2022 to 2023. The ratio remained relatively stable between 2023 and 2024, and experienced a minor increase from 2024 to 2025.

Underlying Components

Adjusted current assets mirrored the values of reported current assets throughout the period. Current liabilities generally increased over the five years, moving from US$21,868 million in 2021 to US$23,417 million in 2025. This increase in liabilities, coupled with fluctuations in current assets, contributed to the observed changes in the adjusted current ratio.

The consistency between the reported and adjusted current ratios suggests the adjustments to current assets were not substantial enough to significantly impact the assessment of the company’s ability to meet its short-term obligations. The ratio’s stabilization around 1.25-1.26 in the later years indicates a relatively consistent short-term liquidity profile during that timeframe.

The adjusted debt to equity ratio exhibited a fluctuating pattern over the five-year period. Initially, the ratio stood at 1.16 in 2021 and remained stable at 1.27 in 2022. A subsequent increase was observed in 2023, reaching 1.52, before escalating significantly to 3.98 in 2024. The ratio experienced a decrease in the final year, settling at 3.43 in 2025.

Adjusted Debt to Equity Ratio - Trend Analysis

From 2021 to 2023, the adjusted debt to equity ratio demonstrated an increasing trend, suggesting a growing reliance on debt financing relative to equity. The most substantial increase occurred between 2023 and 2024, indicating a considerable shift in the company’s capital structure. The slight decline in 2025 offers a partial offset to this increase, but the ratio remained elevated compared to earlier periods.

Adjusted Total Debt and Equity - Concurrent Movements

The adjusted total debt increased from US$45,596 million in 2021 to US$51,200 million in 2024, contributing to the rise in the adjusted debt to equity ratio. While debt decreased to US$47,139 million in 2025, the adjusted total equity experienced a more pronounced decrease over the entire period, falling from US$39,190 million in 2021 to US$13,724 million in 2025. This decline in equity played a significant role in amplifying the ratio’s upward movement, particularly in 2024.

The substantial increase in the adjusted debt to equity ratio in 2024 warrants further investigation. The concurrent decrease in adjusted total equity suggests potential factors such as share repurchases, dividend payouts, or accumulated losses impacting the equity base. The relative stability of the ratio in 2025, despite continued equity decline, indicates that debt management efforts may have partially mitigated the increasing leverage.

Comparison to Reported Debt to Equity

The adjusted debt to equity ratio consistently presented lower values than the reported debt to equity ratio across all observed years. This suggests that adjustments were made to either total debt or total equity that resulted in a more conservative leverage position when using the adjusted figures. The difference between the reported and adjusted ratios remained relatively consistent until 2024, where the gap widened considerably, indicating a more substantial impact from the adjustments in that year.

The reported and adjusted debt to capital ratios exhibit increasing trends over the observed period. Total debt initially decreased between 2021 and 2022, then showed modest increases in 2023 before a more substantial rise in 2024, followed by a slight decrease in 2025. Total capital consistently declined throughout the five-year period. These movements contribute to the observed changes in the debt to capital ratios.

Reported Debt to Capital

The reported debt to capital ratio increased from 0.55 in 2021 to 0.56 in 2022, indicating a slightly higher proportion of debt financing relative to capital. A further increase to 0.57 was observed in 2023. A significant jump occurred in 2024, reaching 0.75, suggesting a substantial increase in leverage. The ratio moderated slightly in 2025, settling at 0.71, but remained considerably higher than the levels seen in the earlier years of the period.

Adjusted Debt to Capital

The adjusted debt to capital ratio mirrored the trend of the reported ratio, beginning at 0.54 in 2021 and rising to 0.56 in 2022. An increase to 0.60 was recorded in 2023. The most pronounced change occurred in 2024, with the ratio reaching 0.80, indicating a significant reliance on debt financing. The ratio decreased to 0.77 in 2025, but remained elevated compared to the earlier years. The adjusted ratio consistently remained slightly below the reported ratio throughout the period.

The consistent decline in total capital, coupled with fluctuations in total debt, drove the increases in both the reported and adjusted debt to capital ratios. The substantial increases observed in 2024 suggest a period of increased borrowing or decreased equity, while the slight moderation in 2025 indicates a potential stabilization or shift in financing strategy. The difference between reported and adjusted ratios suggests that adjustments to the debt and capital figures have a moderating effect on the overall leverage picture.

An examination of the financial information reveals trends in both reported and adjusted financial leverage over a five-year period. Total assets demonstrate a consistent decline annually, decreasing from US$109,314 million in 2021 to US$90,038 million in 2025. Simultaneously, total shareholders’ equity also exhibits a decreasing trend, although with a slight recovery in the final year, falling from US$35,946 million in 2021 to US$16,335 million in 2024 before increasing to US$18,473 million in 2025.

Reported Financial Leverage

Reported financial leverage shows an increasing trend from 3.04 in 2021 to 3.23 in 2023. A significant increase is then observed in 2024, reaching 5.67, followed by a decrease to 4.87 in 2025. This suggests a period of increased reliance on debt financing, peaking in 2024, with a slight moderation in the final year.

Adjusted Financial Leverage

Adjusted financial leverage mirrors the trend of the reported leverage, increasing from 2.75 in 2021 to 3.39 in 2023. Similar to the reported leverage, a substantial increase occurs in 2024, reaching 6.87, before decreasing to 6.17 in 2025. The adjusted leverage consistently remains lower than the reported leverage throughout the period, indicating that adjustments to total assets and equity result in a more conservative leverage position.

Adjusted Total Assets and Equity

Adjusted total assets follow the same downward trajectory as reported total assets, declining from US$107,896 million in 2021 to US$84,718 million in 2025. Adjusted total equity also decreases over the period, moving from US$39,190 million in 2021 to US$12,863 million in 2024, with a modest increase to US$13,724 million in 2025. The magnitude of the decrease in adjusted equity is more pronounced than the decrease in adjusted assets, contributing to the increasing leverage ratios.

The consistent decline in both reported and adjusted asset bases, coupled with the more significant reduction in equity, contributes to the observed increases in financial leverage. The peak in leverage in 2024, followed by a slight decrease in 2025, suggests a potential shift in capital structure or financing strategies during that period.

The adjusted net profit margin exhibited considerable fluctuation over the five-year period. Initial values demonstrated a decline followed by a period of recovery and subsequent significant volatility. A detailed examination of the trends is presented below.

Overall Trend

The adjusted net profit margin began at 13.25% in 2021, decreased substantially to 7.67% in 2022, and then increased to 10.29% in 2023. However, 2024 saw a dramatic decline to -21.91%, representing a net loss. The final year, 2025, showed a recovery to 12.11%, though remaining below the initial 2021 level.

Year-over-Year Changes

From 2021 to 2022, the adjusted net profit margin decreased by 5.58 percentage points. A subsequent increase of 2.62 percentage points was observed between 2022 and 2023. The most significant change occurred between 2023 and 2024, with a decrease of 32.20 percentage points. Finally, a substantial increase of 34.02 percentage points occurred from 2024 to 2025.

Relationship to Revenues

Revenues demonstrated a generally stable trend, with a slight decrease in 2023 followed by increases in 2024 and 2025. The significant decline in adjusted net profit margin in 2024 occurred despite an increase in revenues, suggesting that increased costs or other non-revenue factors substantially impacted profitability. The recovery in 2025, while the adjusted net profit margin increased, did not fully restore it to prior levels despite relatively stable revenues.

Comparison to Reported Net Profit Margin

The adjusted net profit margin consistently differed from the reported net profit margin. The largest divergence occurred in 2024, where the adjusted margin was 3.4 percentage points lower than the reported margin. This indicates that adjustments made to net earnings had a substantial impact on the overall profitability picture, particularly in years with significant losses.

The volatility in the adjusted net profit margin warrants further investigation into the nature of the adjustments being made to net earnings and the underlying factors driving these fluctuations. The substantial loss in 2024, despite revenue growth, is a key area of concern.

The adjusted return on equity (ROE) exhibited considerable fluctuation over the five-year period. While net earnings attributable to BMS and total shareholders’ equity both experienced changes, the adjusted figures reveal a more pronounced volatility in profitability relative to equity.

Adjusted ROE Trend

The adjusted ROE began at 15.69% in 2021, decreased to 11.06% in 2022, and then rose to 16.98% in 2023. A substantial decline occurred in 2024, resulting in a negative adjusted ROE of -82.27%. The adjusted ROE recovered significantly in 2025, reaching 42.52%.

Relationship to Adjusted Net Earnings

The significant drop in adjusted ROE in 2024 directly correlates with a substantial adjusted net loss of US$10,583 million. This contrasts with positive adjusted net earnings in the preceding and subsequent years. The recovery in 2025 is similarly linked to a return to positive adjusted net earnings of US$5,836 million.

Relationship to Adjusted Total Equity

Adjusted total equity generally decreased from US$39,190 million in 2021 to US$12,863 million in 2024. This decrease contributed to the lower adjusted ROE in 2024, as the negative adjusted net earnings were divided by a smaller equity base. A modest increase in adjusted total equity to US$13,724 million in 2025 accompanied the recovery in adjusted ROE.

Comparison to Reported ROE

The reported ROE mirrored the general trend of the adjusted ROE, but with differing magnitudes. The reported ROE also experienced a negative value in 2024 (-54.78%), though less severe than the adjusted ROE. The divergence between reported and adjusted ROE suggests the impact of adjustments to net earnings and equity are substantial and influence the overall profitability picture.

In summary, the adjusted ROE demonstrates a volatile pattern, heavily influenced by fluctuations in adjusted net earnings and, to a lesser extent, changes in adjusted total equity. The year 2024 represents a significant outlier due to a substantial adjusted net loss and a corresponding decrease in adjusted equity, resulting in a markedly negative adjusted ROE.

The adjusted return on assets (ROA) exhibited considerable fluctuation between 2021 and 2025. Initial values demonstrated a decline, followed by a significant negative value, and a subsequent recovery. A detailed examination of the components contributing to this metric reveals key insights into the company’s performance.

Adjusted ROA Trend

The adjusted ROA began at 5.70% in 2021, decreasing to 3.71% in 2022. A modest increase was observed in 2023, reaching 5.01%. However, 2024 saw a substantial decline, resulting in a negative adjusted ROA of -11.97%. The final year presented in the information, 2025, showed a recovery to 6.89%.

Relationship to Adjusted Net Earnings

The adjusted net earnings trend closely mirrors the adjusted ROA trend. Adjusted net earnings decreased from US$6,148 million in 2021 to US$3,541 million in 2022, increased to US$4,629 million in 2023, then experienced a significant loss of US$-10,583 million in 2024, before recovering to US$5,836 million in 2025. This suggests that changes in profitability are a primary driver of the fluctuations in adjusted ROA.

Relationship to Adjusted Total Assets

Adjusted total assets consistently decreased over the five-year period, moving from US$107,896 million in 2021 to US$84,718 million in 2025. While decreasing assets generally contribute to a higher ROA given constant net income, the substantial decline in adjusted net earnings in 2024 overwhelmed this effect, leading to the significantly negative adjusted ROA for that year. The recovery in 2025 was driven by both an increase in adjusted net earnings and a slower rate of asset reduction.

Comparison to Reported ROA

The adjusted ROA consistently differed from the reported ROA. The largest divergence occurred in 2024, where the reported ROA was -9.66% and the adjusted ROA was -11.97%. This indicates that adjustments made to net earnings and total assets had a material impact on the overall ROA calculation, particularly in years with significant adjustments. The adjustments appear to consistently lower the ROA compared to the reported figures.

In summary, the adjusted ROA demonstrates a volatile pattern, heavily influenced by fluctuations in adjusted net earnings and a consistent decrease in adjusted total assets. The substantial negative value in 2024 highlights a period of significant underperformance, while the 2025 figures suggest a partial recovery. The differences between reported and adjusted ROA underscore the importance of considering the impact of these adjustments when evaluating the company’s profitability relative to its assets.