Bristol-Myers Squibb Co. (NYSE:BMY)

The analysis of the quarterly financial ratios reveals distinct cyclical patterns and fluctuations over the observed periods. The three key metrics—Return on Assets (ROA), Financial Leverage, and Return on Equity (ROE)—demonstrate noteworthy variations indicative of underlying operational and financial dynamics.

Return on Assets (ROA)

ROA displays significant volatility throughout the period. Initially, the ratio is negative, declining from -5.53% to -4.58%, then slightly worsening before sharply improving to positive territory at 6.4% by the end of 2021. This positive trend continues into early 2023, peaking around 9.08% before a sharp reversal into deeply negative figures in early to mid-2024, reaching lows near -9.66%. The ratio recovers once again by late 2025, suggesting a cyclical nature influenced by varying asset utilization efficiency or earnings fluctuations relative to total assets.

Financial Leverage

Financial leverage remains relatively stable in the early and middle segments, hovering between 2.9 and 3.3. However, starting in early 2024, a substantial increase is observed, with leverage ratios rising steeply to above 5.4 and peaking at 6.01. This suggests greater reliance on debt financing or increased total liabilities relative to equity during this later period. Following the peak, leverage slightly moderates but remains elevated relative to the earlier periods, indicating a sustained shift in the company’s capital structure.

Return on Equity (ROE)

ROE exhibits a pattern closely linked with both ROA and financial leverage but with more pronounced extremes. Early quarters reflect negative returns down to approximately -16.54%, followed by a sharp turnaround to high positive returns exceeding 28% by late 2023. This surge corresponds to periods of improved asset returns and moderate leverage. Subsequently, ROE plunges dramatically in early 2024 to deeply negative values around -54.78%, aligning with the period of increased financial leverage and declining ROA. In the most recent quarters, ROE rebounds strongly, regaining positive returns exceeding 30%, suggesting effective recovery in equity profitability after prior setbacks.

In summary, the observed data illustrate a period of initial financial struggle with negative profitability metrics, followed by a phase of strong improvement and efficient capital utilization. The elevated financial leverage starting in 2024 corresponds with marked volatility in profitability measures, indicating potential risk exposures related to debt or capital structure changes. Despite these fluctuations, the latest periods show signs of recovery in both asset efficiency and equity returns, suggesting resilience and adaptability in the company’s financial performance over the analyzed timeline.

Net Profit Margin

The net profit margin demonstrated notable volatility over the observed periods. Initially, the margin was negative, indicating losses, but it improved significantly by the end of 2021, stabilizing in a positive range during 2022 and early 2023 with values generally around 14% to 18%. However, there was a substantial decline beginning in early 2024, with margins turning negative again and reaching lows near -18.5% by the end of 2024. In 2025, profitability recovered to positive territory, albeit with moderate values ranging between approximately 10.5% and 12.6%, indicating ongoing fluctuating profitability challenges.

Asset Turnover

Asset turnover displayed a steady upward trend throughout most periods, beginning at 0.38 and rising gradually to a peak of about 0.52 by the end of 2024. This suggests a consistent improvement in the efficiency with which assets were utilized to generate revenue. There was a slight dip in mid-2023 and again marginal decreases in 2025, but overall the ratio remained relatively stable around the 0.5 mark, reflecting sustained operational efficiency despite other financial challenges.

Financial Leverage

Financial leverage ratios were relatively stable around the 3.0 mark from 2021 through 2023, indicating a moderate level of debt relative to equity. A marked increase occurred at the beginning of 2024, with ratios doubling to values above 5.4, peaking over 6.0, signaling a significant rise in the use of debt financing during this period. This elevated leverage persisted through 2024 and early 2025, before showing a slight reduction later in 2025. The sharp increase in leverage may represent strategic financing decisions or external pressures that increased reliance on debt.

Return on Equity (ROE)

Return on equity exhibited substantial fluctuations mirroring trends seen in net profit margin but with greater amplitude. ROE started with negative values around -16%, improved sharply to reach peaks over 28% at the end of 2023. Early 2024 saw a drastic reversal with ROE falling deeply negative, reaching nearly -55%, indicating severe declines in shareholder returns during this timeframe. However, by mid-to-late 2025, ROE recovered robustly to values exceeding 30%, reflecting a rebound in profitability and efficient equity utilization, albeit after a period of pronounced financial distress.

The analysis of the quarterly financial metrics reveals distinct cyclical patterns and fluctuations in profitability and operational efficiency over the observed periods.

Net Profit Margin (%)

The net profit margin shows notable volatility across the time frame. Initially, there is a phase of negative margins, reaching a low point around the first quarter of 2021. This is followed by a significant positive turnaround starting from the last quarter of 2021, with margins consistently above 13% and peaking near 18.44% towards the end of 2023. However, a pronounced decline occurs thereafter, with margins dropping below zero again in early 2024 and continuing to decrease substantially through late 2024. By early 2025, the net profit margin recovers again to positive territory, stabilizing between approximately 10.5% and 12.5%.

Asset Turnover (ratio)

Asset turnover exhibits a generally positive and steady upward trend throughout the period. Starting from a low point of 0.38, the ratio gradually increases, fluctuating between 0.46 and 0.52 in most quarters following the initial year. This suggests an improving efficiency in the use of assets to generate revenue. Although minor fluctuations are observed, the overall trend does not show any abrupt declines and indicates a strengthening operational performance in asset utilization.

Return on Assets (ROA) (%)

Return on assets mirrors the net profit margin’s volatility but on a relatively more modest scale. The metric starts with negative returns early in 2021, progressively improves to a peak near 9.08% by late 2023, signifying enhanced overall profitability and asset efficiency. Nevertheless, similar to the net profit margin, ROA sharply deteriorates starting in 2024, with negative values increasing in magnitude toward the end of that year. Early 2025 shows a rebound with ROA recovering to positive levels again, though remaining below the previous peak.

In summary, the company experienced periods of strong profitability and improving asset efficiency particularly from late 2021 through 2023. However, considerable challenges emerged in 2024, resulting in marked declines in profit margins and returns on assets despite sustained asset turnover levels. The rebound in early 2025 suggests some recovery, but the fluctuations highlight potential volatility in financial performance that may warrant further investigation.