Bristol-Myers Squibb Co. (NYSE:BMY)

The financial data presents key performance indicators over multiple quarters, highlighting notable fluctuations in profitability and leverage.

Return on Assets (ROA)

The ROA exhibited a weak negative performance starting in late 2020, with values ranging from approximately -7.61% to -4.58%. A marked improvement occurred in 2021 and early 2022, where the ROA transitioned to positive territory, peaking around 9.08% in late 2023. This positive trend suggests enhanced asset efficiency during this period. However, from early 2024, the ROA declined sharply back into negative figures, reaching lows near -9.66% by late 2024, before recovering slightly to around 5.33% by mid-2025.

Financial Leverage

Financial leverage ratios demonstrated relative stability between early 2020 and 2023, fluctuating in a narrow band around 2.5 to 3.3. Starting in early 2024, however, leverage increased significantly, peaking above 6.0 in the second quarter of 2024. This marked increase indicates a substantial rise in debt financing relative to equity during this time frame, which may correspond with the concurrent declines in profitability ratios.

Return on Equity (ROE)

The ROE pattern largely mirrors that of ROA but with amplified volatility. Initial data from late 2020 reflects substantial negative returns on equity, reaching nearly -23.84%. This transitioned into strong positive returns throughout 2021 and 2023, with peaks exceeding 28%, indicating periods of profitable equity utilization. Notably, beginning in early 2024, ROE experienced a deep downturn to as low as -54.78%, the lowest point in the observed span, aligning with the heightened financial leverage. Subsequently, a partial recovery to around 29% is observed by mid-2025.

In summary, the company demonstrated a recovery in profitability measures during 2021 through 2023 following early losses, supported by moderate leverage levels. This was followed by a period of increased financial leverage in 2024, coinciding with pronounced declines in both ROA and ROE, suggesting elevated financial risk and deteriorated profitability. The latter part of the data indicates a rebound in financial performance despite persistent higher leverage.

Net Profit Margin

The Net Profit Margin exhibits significant volatility over the observed periods. Initially, there is a negative margin starting at -21.2% in December 2020, improving gradually to positive territory by March 2022, where it stabilizes between approximately 13% and 18%. This positive trend continues through December 2023, peaking at 18.44%. However, from March 2024, the margin declines sharply, reverting to negative values, hitting as low as -18.53% in December 2024. A subsequent recovery is observed in early 2025, with margins returning to positive levels around 10-11% by June 2025.

Asset Turnover

The Asset Turnover ratio demonstrates a general upward trend from 0.36 in March 2021 to a peak of 0.52 between September and June 2025. There is a slight fluctuation around 0.48-0.49 between late 2022 and early 2024. Despite minor declines in some quarters, the overall pattern suggests gradual improvement in the company's efficiency in utilizing assets to generate sales over the full period.

Financial Leverage

Financial Leverage shows relative stability from March 2020 through December 2023, fluctuating mostly between 2.5 and 3.3. Starting in March 2024, there is a marked increase, nearly doubling to approximately 5.3 to 6.0 during 2024 and into mid-2025. This significant rise indicates increased reliance on debt or other liabilities in the company's capital structure during this later period.

Return on Equity (ROE)

The ROE aligns closely with the trends observed in Net Profit Margin and Financial Leverage. It begins with negative values from December 2020, improving dramatically to peak values above 28% in early 2024. However, this is followed by a steep decline back to negative territory, reaching as low as -54.78% by December 2024. A strong recovery is noted in the first half of 2025, with ROE returning to positive levels exceeding 28%. The fluctuations reveal periods of both strong profitability and operational challenges impacting shareholder returns.

Net Profit Margin

The net profit margin exhibits a notable volatility throughout the observed periods. Initially, there is a significant negative margin beginning at -21.2% in December 2020, which progressively improves to positive territory by March 2021, reaching a peak of approximately 18.44% in September 2023. Following this peak, the margin experiences a marked decline, turning negative again from March 2024 and bottoming around -18.53% by December 2024. A recovery trend is observed in the final periods, ending positively at 11.38% in March 2025. This pattern suggests fluctuating profitability with periods of both strong profit generation and considerable losses.

Asset Turnover

Asset turnover demonstrates a steady upward trend over the evaluated timeframe. Starting from 0.36 in March 2021, the ratio gradually increases, with minor fluctuations, and peaks at 0.52 during two consecutive periods in September and December 2024 before slightly dipping to 0.50 in March 2025. This indicates a consistent enhancement in the efficiency of asset utilization to generate sales, reflecting improved operational performance.

Return on Assets (ROA)

The ROA closely mirrors the net profit margin's volatility, moving from negative values during the initial periods to positive growth reaching 9.08% by September 2023. Subsequently, it declines again, turning negative in early 2024 and sustaining a downturn until December 2024 with a low of -9.66%. A recovery ensues, with the metric rising to 5.86% by March 2025. This fluctuation in ROA underscores variations in profitability relative to asset base, aligning with the changes seen in net profit margin.