Bristol-Myers Squibb Co. (NYSE:BMY) 

Return on Assets (ROA)

ROA data starts from December 31, 2020, showing a negative trend initially with -7.61%, improving gradually to a positive range between March 31, 2021 (6.4%) and December 31, 2023 (9.08%). The highest ROA was observed at 9.08% on September 30, 2023. However, from March 31, 2024, a significant decline occurs, plunging to negative values again, reaching a low of -9.66% by December 31, 2024. There is a sharp recovery noted at March 31, 2025, with ROA jumping back to 5.86%.

Financial Leverage

Financial leverage displays relatively stable behavior around an average of approximately 3 times between March 31, 2020, and December 31, 2023, with minor fluctuations between 2.5 and 3.26. In 2024, there is a marked increase in leverage, peaking at 6.01 on March 31, 2024, then slightly declining but remaining elevated above 5.3 through March 31, 2025. This indicates a significant increase in the use of debt or financial obligations starting early 2024.

Return on Equity (ROE)

ROE follows a pattern similar to ROA with available data from December 31, 2020. Initial values are substantially negative (-23.84% to -13.8%) but improve dramatically, turning positive at 19.46% on March 31, 2021. The ROE peaks at 28.57% on September 30, 2023, with consistent growth observed through 2021 to 2023. Nonetheless, a sharp deterioration occurs starting from March 31, 2024, with ROE plummeting to an extreme negative of -54.78% by December 31, 2024. This is followed by a significant positive recovery to 31.16% by March 31, 2025.

The financial metrics exhibit varied trends over the periods analyzed, illustrating fluctuations in profitability, efficiency, leverage, and overall return to equity holders.

Net Profit Margin

The net profit margin experienced a significant turnaround from negative values in early 2020 to positive figures through most of 2021 and 2022, indicating an improvement in profitability. Margins peaked around 18.44% in Q3 2023, reflecting strong profitability during this period. However, a sharp decline followed starting Q1 2024, falling back into negative territory and reaching as low as -18.53% by Q4 2024 before rebounding to 11.38% in Q1 2025. This volatility suggests instability in net earnings relative to revenue towards the latter part of the timeline.

Asset Turnover

Asset turnover shows a steady upward trend overall, beginning at 0.36 and increasing progressively to reach 0.52 by Q1 2025. The incremental rise indicates an improving efficiency in utilizing assets to generate revenue. Although relatively stable in some quarters, the consistent increase over the time series points toward effective asset management and enhanced operational performance.

Financial Leverage

Financial leverage fluctuated around the low 3.0 range between 2020 and 2023, signaling a moderate reliance on debt relative to equity. Starting in early 2024, there was a marked increase in leverage ratios, more than doubling to around 5.32 by Q1 2025. This substantial rise in leverage may imply increased borrowing or higher debt levels, elevating the financial risk profile of the company during this phase.

Return on Equity (ROE)

ROE mirrored the net profit margin's pattern with negative returns in early 2020, improving markedly through 2021 and 2022 to reach a peak of 28.57% in Q3 2023. The strong ROE during this period suggests effective use of equity capital to generate profits. Nonetheless, from early 2024 onwards, ROE declined precipitously, plunging to negative values as low as -54.78% in Q4 2024, before recovering significantly to 31.16% in Q1 2025. This severe fluctuation indicates periods of both high profitability and considerable losses, linked possibly to the changes in net profit margin and financial leverage.

The data reveals fluctuating profitability and efficiency trends over the observed periods.

Net Profit Margin

Initially, the net profit margin was negative in the early periods, starting at approximately -21.2% and gradually improving to positive territory by the end of 2020. During 2021 and into early 2023, the margin remained positive and relatively stable, fluctuating between roughly 13% and 18%, indicating a period of profitability. From early 2024 onwards, the net profit margin again declined sharply, turning negative and reaching a low near -18.53%, before rebounding to a positive margin of 11.38% by the end of the timeline. This pattern suggests periods of volatility and challenges affecting profitability, particularly in 2024.

Asset Turnover

Asset turnover ratios show a consistent upward trend across most periods, beginning around 0.36 and gradually improving to about 0.52 by the final period. This steady increase indicates improving operational efficiency in the use of assets to generate sales. Minor fluctuations occur, but the overall pattern reflects continuous progress in asset utilization over the analyzed timeline.

Return on Assets (ROA)

ROA mirrors the trend seen in net profit margin, with early periods marked by negative returns, reaching approximately -7.61%. An improvement trend is visible throughout 2021 and into early 2023 where ROA turned positive, climbing as high as 9.08%. However, a significant decline occurs again starting in early 2024, with ROA falling negative near -9.66%, before recovering somewhat to 5.86% at the end. This oscillation highlights periods of reduced asset profitability and eventual recovery.