Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Bristol-Myers Squibb Co., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.36 0.20 0.64 0.62 0.58
Adjusted 0.36 0.20 0.66 0.64 0.62
Liquidity Ratio
Current Ratio
Reported 1.58 1.60 1.61 1.55 1.55
Adjusted 1.58 1.60 1.62 1.56 1.56
Solvency Ratios
Debt to Equity
Reported 1.34 0.91 0.52 0.68 0.41
Adjusted 1.22 0.82 0.61 0.82 0.54
Debt to Capital
Reported 0.57 0.48 0.34 0.40 0.29
Adjusted 0.55 0.45 0.38 0.45 0.35
Financial Leverage
Reported 3.13 2.52 2.49 2.86 2.08
Adjusted 2.77 2.24 2.65 3.11 2.32
Profitability Ratios
Net Profit Margin
Reported -21.20% 13.15% 21.81% 4.85% 22.94%
Adjusted -19.49% 14.41% 21.19% 10.91% 22.03%
Return on Equity (ROE)
Reported -23.84% 6.66% 35.07% 8.58% 27.55%
Adjusted -19.59% 6.52% 36.97% 21.56% 31.56%
Return on Assets (ROA)
Reported -7.61% 2.65% 14.06% 3.00% 13.22%
Adjusted -7.06% 2.91% 13.96% 6.93% 13.62%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted total asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Bristol-Myers Squibb Co. adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Bristol-Myers Squibb Co. adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Bristol-Myers Squibb Co. adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co. adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Bristol-Myers Squibb Co. adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Bristol-Myers Squibb Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Revenues 42,518  26,145  22,561  20,776  19,427 
Total assets 118,481  129,944  34,986  33,551  33,707 
Activity Ratio
Total asset turnover1 0.36 0.20 0.64 0.62 0.58
Adjusted
Selected Financial Data (US$ in millions)
Revenues 42,518  26,145  22,561  20,776  19,427 
Adjusted total assets2 117,338  129,455  34,229  32,678  31,428 
Activity Ratio
Adjusted total asset turnover3 0.36 0.20 0.66 0.64 0.62

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Total asset turnover = Revenues ÷ Total assets
= 42,518 ÷ 118,481 = 0.36

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 42,518 ÷ 117,338 = 0.36

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted total asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Current Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 30,192  29,354  17,160  14,854  13,704 
Current liabilities 19,080  18,304  10,654  9,563  8,841 
Liquidity Ratio
Current ratio1 1.58 1.60 1.61 1.55 1.55
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 30,210  29,375  17,193  14,897  13,752 
Adjusted current liabilities3 19,080  18,304  10,629  9,563  8,841 
Liquidity Ratio
Adjusted current ratio4 1.58 1.60 1.62 1.56 1.56

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 30,192 ÷ 19,080 = 1.58

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 30,210 ÷ 19,080 = 1.58

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Bristol-Myers Squibb Co. adjusted current ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 50,676  46,733  7,349  7,962  6,708 
Total Bristol-Myers Squibb Company shareholders’ equity 37,822  51,598  14,031  11,741  16,177 
Solvency Ratio
Debt to equity1 1.34 0.91 0.52 0.68 0.41
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 51,673  47,538  7,930  8,656  7,377 
Adjusted total equity3 42,294  57,763  12,931  10,511  13,560 
Solvency Ratio
Adjusted debt to equity4 1.22 0.82 0.61 0.82 0.54

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to equity = Total debt ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 50,676 ÷ 37,822 = 1.34

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 51,673 ÷ 42,294 = 1.22

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Bristol-Myers Squibb Co. adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 50,676  46,733  7,349  7,962  6,708 
Total capital 88,498  98,331  21,380  19,703  22,885 
Solvency Ratio
Debt to capital1 0.57 0.48 0.34 0.40 0.29
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 51,673  47,538  7,930  8,656  7,377 
Adjusted total capital3 93,967  105,301  20,861  19,167  20,937 
Solvency Ratio
Adjusted debt to capital4 0.55 0.45 0.38 0.45 0.35

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 50,676 ÷ 88,498 = 0.57

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 51,673 ÷ 93,967 = 0.55

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Bristol-Myers Squibb Co. adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 118,481  129,944  34,986  33,551  33,707 
Total Bristol-Myers Squibb Company shareholders’ equity 37,822  51,598  14,031  11,741  16,177 
Solvency Ratio
Financial leverage1 3.13 2.52 2.49 2.86 2.08
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 117,338  129,455  34,229  32,678  31,428 
Adjusted total equity3 42,294  57,763  12,931  10,511  13,560 
Solvency Ratio
Adjusted financial leverage4 2.77 2.24 2.65 3.11 2.32

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Financial leverage = Total assets ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 118,481 ÷ 37,822 = 3.13

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 117,338 ÷ 42,294 = 2.77

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co. adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to BMS (9,015) 3,439  4,920  1,007  4,457 
Revenues 42,518  26,145  22,561  20,776  19,427 
Profitability Ratio
Net profit margin1 -21.20% 13.15% 21.81% 4.85% 22.94%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 (8,286) 3,767  4,780  2,266  4,280 
Revenues 42,518  26,145  22,561  20,776  19,427 
Profitability Ratio
Adjusted net profit margin3 -19.49% 14.41% 21.19% 10.91% 22.03%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to BMS ÷ Revenues
= 100 × -9,015 ÷ 42,518 = -21.20%

2 Adjusted net earnings (loss). See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) ÷ Revenues
= 100 × -8,286 ÷ 42,518 = -19.49%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co. adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to BMS (9,015) 3,439  4,920  1,007  4,457 
Total Bristol-Myers Squibb Company shareholders’ equity 37,822  51,598  14,031  11,741  16,177 
Profitability Ratio
ROE1 -23.84% 6.66% 35.07% 8.58% 27.55%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 (8,286) 3,767  4,780  2,266  4,280 
Adjusted total equity3 42,294  57,763  12,931  10,511  13,560 
Profitability Ratio
Adjusted ROE4 -19.59% 6.52% 36.97% 21.56% 31.56%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROE = 100 × Net earnings (loss) attributable to BMS ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 100 × -9,015 ÷ 37,822 = -23.84%

2 Adjusted net earnings (loss). See details »

3 Adjusted total equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) ÷ Adjusted total equity
= 100 × -8,286 ÷ 42,294 = -19.59%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Bristol-Myers Squibb Co. adjusted ROE deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to BMS (9,015) 3,439  4,920  1,007  4,457 
Total assets 118,481  129,944  34,986  33,551  33,707 
Profitability Ratio
ROA1 -7.61% 2.65% 14.06% 3.00% 13.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss)2 (8,286) 3,767  4,780  2,266  4,280 
Adjusted total assets3 117,338  129,455  34,229  32,678  31,428 
Profitability Ratio
Adjusted ROA4 -7.06% 2.91% 13.96% 6.93% 13.62%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROA = 100 × Net earnings (loss) attributable to BMS ÷ Total assets
= 100 × -9,015 ÷ 118,481 = -7.61%

2 Adjusted net earnings (loss). See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) ÷ Adjusted total assets
= 100 × -8,286 ÷ 117,338 = -7.06%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted ROA deteriorated from 2018 to 2019 and from 2019 to 2020.