Stock Analysis on Net
Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

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

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 27.27% = 8.43% × 3.23
Sep 30, 2023 28.57% = 9.08% × 3.15
Jun 30, 2023 24.91% = 8.52% × 2.92
Mar 31, 2023 22.97% = 7.75% × 2.96
Dec 31, 2022 20.37% = 6.53% × 3.12
Sep 30, 2022 20.44% = 6.80% × 3.01
Jun 30, 2022 20.30% = 6.59% × 3.08
Mar 31, 2022 19.79% = 6.07% × 3.26
Dec 31, 2021 19.46% = 6.40% × 3.04
Sep 30, 2021 -14.52% = -4.87% × 2.98
Jun 30, 2021 -13.80% = -4.58% × 3.01
Mar 31, 2021 -16.54% = -5.53% × 2.99
Dec 31, 2020 -23.84% = -7.61% × 3.13
Sep 30, 2020 -0.09% = -0.04% × 2.50
Jun 30, 2020 -1.15% = -0.44% × 2.61
Mar 31, 2020 1.91% = 0.74% × 2.59
Dec 31, 2019 6.66% = 2.65% × 2.52
Sep 30, 2019 — = — × 3.25
Jun 30, 2019 — = — × 3.44
Mar 31, 2019 — = — × 2.29

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 27.27% = 17.83% × 0.47 × 3.23
Sep 30, 2023 28.57% = 18.44% × 0.49 × 3.15
Jun 30, 2023 24.91% = 17.62% × 0.48 × 2.92
Mar 31, 2023 22.97% = 15.95% × 0.49 × 2.96
Dec 31, 2022 20.37% = 13.71% × 0.48 × 3.12
Sep 30, 2022 20.44% = 14.29% × 0.48 × 3.01
Jun 30, 2022 20.30% = 14.04% × 0.47 × 3.08
Mar 31, 2022 19.79% = 13.31% × 0.46 × 3.26
Dec 31, 2021 19.46% = 15.08% × 0.42 × 3.04
Sep 30, 2021 -14.52% = -11.89% × 0.41 × 2.98
Jun 30, 2021 -13.80% = -11.44% × 0.40 × 3.01
Mar 31, 2021 -16.54% = -14.53% × 0.38 × 2.99
Dec 31, 2020 -23.84% = -21.20% × 0.36 × 3.13
Sep 30, 2020 -0.09% = -0.11% × 0.31 × 2.50
Jun 30, 2020 -1.15% = -1.61% × 0.27 × 2.61
Mar 31, 2020 1.91% = 3.08% × 0.24 × 2.59
Dec 31, 2019 6.66% = 13.15% × 0.20 × 2.52
Sep 30, 2019 — = — × — × 3.25
Jun 30, 2019 — = — × — × 3.44
Mar 31, 2019 — = — × — × 2.29

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Bristol-Myers Squibb Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 8.43% = 17.83% × 0.47
Sep 30, 2023 9.08% = 18.44% × 0.49
Jun 30, 2023 8.52% = 17.62% × 0.48
Mar 31, 2023 7.75% = 15.95% × 0.49
Dec 31, 2022 6.53% = 13.71% × 0.48
Sep 30, 2022 6.80% = 14.29% × 0.48
Jun 30, 2022 6.59% = 14.04% × 0.47
Mar 31, 2022 6.07% = 13.31% × 0.46
Dec 31, 2021 6.40% = 15.08% × 0.42
Sep 30, 2021 -4.87% = -11.89% × 0.41
Jun 30, 2021 -4.58% = -11.44% × 0.40
Mar 31, 2021 -5.53% = -14.53% × 0.38
Dec 31, 2020 -7.61% = -21.20% × 0.36
Sep 30, 2020 -0.04% = -0.11% × 0.31
Jun 30, 2020 -0.44% = -1.61% × 0.27
Mar 31, 2020 0.74% = 3.08% × 0.24
Dec 31, 2019 2.65% = 13.15% × 0.20
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in asset turnover ratio.