Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Two-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 27.27% = 8.43% × 3.23
Dec 31, 2022 20.37% = 6.53% × 3.12
Dec 31, 2021 19.46% = 6.40% × 3.04
Dec 31, 2020 -23.84% = -7.61% × 3.13
Dec 31, 2019 6.66% = 2.65% × 2.52

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 27.27% = 17.83% × 0.47 × 3.23
Dec 31, 2022 20.37% = 13.71% × 0.48 × 3.12
Dec 31, 2021 19.46% = 15.08% × 0.42 × 3.04
Dec 31, 2020 -23.84% = -21.20% × 0.36 × 3.13
Dec 31, 2019 6.66% = 13.15% × 0.20 × 2.52

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in profitability measured by net profit margin ratio.


Five-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 27.27% = 0.95 × 0.88 × 21.31% × 0.47 × 3.23
Dec 31, 2022 20.37% = 0.82 × 0.86 × 19.34% × 0.48 × 3.12
Dec 31, 2021 19.46% = 0.87 × 0.86 × 20.29% × 0.42 × 3.04
Dec 31, 2020 -23.84% = × × -12.87% × 0.36 × 3.13
Dec 31, 2019 6.66% = 0.69 × 0.88 × 21.46% × 0.20 × 2.52

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in return on equity ratio (ROE) over 2023 year is the increase in effect of taxes measured by tax burden ratio.


Two-Component Disaggregation of ROA

Bristol-Myers Squibb Co., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.43% = 17.83% × 0.47
Dec 31, 2022 6.53% = 13.71% × 0.48
Dec 31, 2021 6.40% = 15.08% × 0.42
Dec 31, 2020 -7.61% = -21.20% × 0.36
Dec 31, 2019 2.65% = 13.15% × 0.20

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

Bristol-Myers Squibb Co., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 8.43% = 0.95 × 0.88 × 21.31% × 0.47
Dec 31, 2022 6.53% = 0.82 × 0.86 × 19.34% × 0.48
Dec 31, 2021 6.40% = 0.87 × 0.86 × 20.29% × 0.42
Dec 31, 2020 -7.61% = × × -12.87% × 0.36
Dec 31, 2019 2.65% = 0.69 × 0.88 × 21.46% × 0.20

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in effect of taxes measured by tax burden ratio.


Disaggregation of Net Profit Margin

Bristol-Myers Squibb Co., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 17.83% = 0.95 × 0.88 × 21.31%
Dec 31, 2022 13.71% = 0.82 × 0.86 × 19.34%
Dec 31, 2021 15.08% = 0.87 × 0.86 × 20.29%
Dec 31, 2020 -21.20% = × × -12.87%
Dec 31, 2019 13.15% = 0.69 × 0.88 × 21.46%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The primary reason for the increase in net profit margin ratio over 2023 year is the increase in effect of taxes measured by tax burden ratio.