Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Bristol-Myers Squibb Co., solvency ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Solvency ratios demonstrate a notable shift in the company’s financial leverage profile over the five-year period. Initially, from 2021 to 2023, increases in debt ratios were incremental. However, 2024 witnessed a substantial increase in leverage, followed by a partial reduction in 2025, though levels remained elevated compared to earlier years.
- Debt Ratios (Debt to Equity, Debt to Capital, Debt to Assets)
- The Debt to Equity ratio increased from 1.24 in 2021 to 1.35 in 2023, indicating a growing reliance on debt financing relative to equity. A significant jump occurred in 2024, reaching 3.04, before decreasing to 2.44 in 2025. Similar trends are observed in the Debt to Capital and Debt to Assets ratios, with increases through 2023 and a marked rise in 2024, followed by a slight decline in 2025. Inclusion of operating lease liabilities consistently results in slightly higher ratio values.
- Financial Leverage
- Financial leverage exhibited a consistent upward trend from 3.04 in 2021 to 3.23 in 2023. The ratio experienced a dramatic increase in 2024, reaching 5.67, suggesting a considerably amplified use of debt to finance assets. While decreasing to 4.87 in 2025, the level remained substantially higher than in previous years.
- Coverage Ratios (Interest Coverage, Fixed Charge Coverage)
- Both Interest Coverage and Fixed Charge Coverage ratios improved steadily from 2021 to 2023, indicating an increasing ability to meet interest and fixed obligations. However, 2024 saw a significant deterioration, with both ratios becoming negative (-3.30 and -2.75 respectively), signifying an inability to cover these obligations with earnings. A recovery was observed in 2025, with ratios returning to positive values (5.93 and 5.27), though still below the levels seen prior to 2024.
The substantial increase in debt ratios and financial leverage in 2024, coupled with the negative coverage ratios, suggests a period of increased financial risk. The partial recovery in 2025 is encouraging, but the solvency position remains more leveraged than it was in the 2021-2023 timeframe. Continued monitoring of these ratios is warranted to assess the sustainability of the company’s capital structure.
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Debt Ratios
Coverage Ratios
Debt to Equity
Bristol-Myers Squibb Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Total BMS shareholders’ equity | 18,473) | 16,335) | 29,430) | 31,061) | 35,946) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.44 | 3.04 | 1.35 | 1.27 | 1.24 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | 20.19 | 5.73 | 3.67 | 4.98 | |
| Amgen Inc. | 6.31 | 10.23 | 10.37 | 10.64 | 4.97 | |
| Danaher Corp. | 0.35 | 0.32 | 0.34 | 0.39 | 0.49 | |
| Eli Lilly & Co. | 1.60 | 2.37 | 2.34 | 1.52 | 1.88 | |
| Gilead Sciences Inc. | 1.10 | 1.38 | 1.09 | 1.19 | 1.27 | |
| Johnson & Johnson | 0.59 | 0.51 | 0.43 | 0.52 | 0.46 | |
| Merck & Co. Inc. | 0.94 | 0.80 | 0.93 | 0.67 | 0.87 | |
| Pfizer Inc. | 0.75 | 0.73 | 0.81 | 0.37 | 0.50 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.12 | 0.14 | |
| Thermo Fisher Scientific Inc. | 0.74 | 0.63 | 0.75 | 0.78 | 0.85 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.02 | 1.04 | 0.97 | 0.80 | 0.93 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.86 | 0.87 | 0.82 | 0.72 | 0.80 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity = Total debt ÷ Total BMS shareholders’ equity
= 45,111 ÷ 18,473 = 2.44
2 Click competitor name to see calculations.
The debt to equity ratio exhibits a notable increasing trend over the observed period. Initially, the ratio stood at 1.24 in 2021 and increased to 1.35 by 2023. A significant jump is then observed, with the ratio reaching 3.04 in 2024, before decreasing slightly to 2.44 in 2025.
- Total Debt
- Total debt decreased from US$44,553 million in 2021 to US$39,320 million in 2022. It experienced a slight increase to US$39,772 million in 2023, followed by a substantial rise to US$49,649 million in 2024. The most recent year, 2025, shows a decrease in total debt to US$45,111 million.
- Total Shareholders’ Equity
- Total shareholders’ equity consistently declined from US$35,946 million in 2021 to US$29,430 million in 2023. A significant reduction occurred in 2024, falling to US$16,335 million. A modest recovery is seen in 2025, with equity increasing to US$18,473 million, though remaining substantially lower than earlier levels.
- Debt to Equity Ratio – Trend Analysis
- The initial increase in the debt to equity ratio from 2021 to 2023 suggests a growing reliance on debt financing relative to equity. The dramatic increase in 2024 is primarily driven by a combination of increased debt and a substantial decrease in shareholders’ equity. The slight decrease in the ratio in 2025 is attributable to a reduction in total debt, partially offset by a limited increase in equity. The ratio remains elevated compared to the levels observed in the earlier years of the period.
The observed trends suggest a shift in the company’s capital structure towards greater financial leverage, particularly pronounced in 2024. The subsequent decrease in the ratio in 2025 offers a partial offset, but the overall level of debt relative to equity remains considerably higher than in 2021, 2022, and 2023.
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Debt to Equity (including Operating Lease Liability)
Bristol-Myers Squibb Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Current operating lease liabilities | 202) | 181) | 162) | 136) | 169) | |
| Non-current operating lease liabilities | 1,826) | 1,370) | 1,530) | 1,261) | 874) | |
| Total debt (including operating lease liability) | 47,139) | 51,200) | 41,464) | 40,717) | 45,596) | |
| Total BMS shareholders’ equity | 18,473) | 16,335) | 29,430) | 31,061) | 35,946) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.55 | 3.13 | 1.41 | 1.31 | 1.27 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 20.46 | 5.82 | 3.72 | 5.03 | |
| Amgen Inc. | 6.40 | 10.36 | 10.50 | 10.83 | 5.07 | |
| Danaher Corp. | 0.37 | 0.35 | 0.37 | 0.41 | 0.52 | |
| Eli Lilly & Co. | 1.65 | 2.45 | 2.44 | 1.59 | 1.96 | |
| Gilead Sciences Inc. | 1.13 | 1.41 | 1.12 | 1.22 | 1.30 | |
| Johnson & Johnson | 0.60 | 0.53 | 0.44 | 0.53 | 0.47 | |
| Merck & Co. Inc. | 0.96 | 0.83 | 0.97 | 0.70 | 0.91 | |
| Pfizer Inc. | 0.78 | 0.76 | 0.84 | 0.41 | 0.54 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.10 | 0.11 | 0.12 | 0.15 | |
| Thermo Fisher Scientific Inc. | 0.76 | 0.66 | 0.78 | 0.82 | 0.89 | |
| Vertex Pharmaceuticals Inc. | 0.11 | 0.11 | 0.05 | 0.06 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.05 | 1.07 | 1.00 | 0.83 | 0.96 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 0.90 | 0.85 | 0.76 | 0.83 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total BMS shareholders’ equity
= 47,139 ÷ 18,473 = 2.55
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liability, demonstrates a notable shift over the observed period. Initially, the ratio exhibited a modest increase, followed by a substantial rise and subsequent moderation. Total debt, inclusive of operating lease liabilities, fluctuated, while total shareholders’ equity generally decreased before a slight recovery in the final year.
- Debt to Equity Ratio - Trend Analysis
- The debt to equity ratio began at 1.27 in 2021 and increased to 1.31 in 2022, indicating a slightly increased reliance on debt financing relative to equity. This trend continued in 2023, with the ratio reaching 1.41. A significant increase was then observed in 2024, with the ratio jumping to 3.13, suggesting a substantial increase in debt relative to equity. The ratio decreased in 2025 to 2.55, though it remained considerably higher than the levels seen in the earlier years of the period.
- Total Debt - Trend Analysis
- Total debt decreased from US$45,596 million in 2021 to US$40,717 million in 2022. It then experienced a slight increase to US$41,464 million in 2023 before rising substantially to US$51,200 million in 2024. In 2025, total debt decreased to US$47,139 million, but remained elevated compared to the 2021-2023 levels.
- Total Shareholders’ Equity - Trend Analysis
- Total shareholders’ equity experienced a consistent decline from US$35,946 million in 2021 to US$29,430 million in 2023. A significant decrease occurred in 2024, with equity falling to US$16,335 million. A modest recovery was observed in 2025, with equity increasing to US$18,473 million, although it remained substantially lower than the levels recorded in 2021, 2022, and 2023.
The combined effect of decreasing equity and fluctuating debt levels resulted in the observed changes in the debt to equity ratio. The substantial increase in the ratio in 2024 warrants further investigation to understand the drivers behind the increased debt and the significant reduction in equity.
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Debt to Capital
Bristol-Myers Squibb Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Total BMS shareholders’ equity | 18,473) | 16,335) | 29,430) | 31,061) | 35,946) | |
| Total capital | 63,584) | 65,984) | 69,202) | 70,381) | 80,499) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.71 | 0.75 | 0.57 | 0.56 | 0.55 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.91 | 0.83 | |
| Danaher Corp. | 0.26 | 0.24 | 0.26 | 0.28 | 0.33 | |
| Eli Lilly & Co. | 0.62 | 0.70 | 0.70 | 0.60 | 0.65 | |
| Gilead Sciences Inc. | 0.52 | 0.58 | 0.52 | 0.54 | 0.56 | |
| Johnson & Johnson | 0.37 | 0.34 | 0.30 | 0.34 | 0.31 | |
| Merck & Co. Inc. | 0.48 | 0.44 | 0.48 | 0.40 | 0.46 | |
| Pfizer Inc. | 0.43 | 0.42 | 0.45 | 0.27 | 0.33 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.42 | 0.39 | 0.43 | 0.44 | 0.46 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.51 | 0.49 | 0.44 | 0.48 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.47 | 0.45 | 0.42 | 0.44 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 45,111 ÷ 63,584 = 0.71
2 Click competitor name to see calculations.
The Debt to Capital ratio exhibits an increasing trend over the observed period. Initially, the ratio stood at 0.55 in 2021 and gradually increased to 0.75 in 2024 before decreasing slightly to 0.71 in 2025. This indicates a growing reliance on debt financing relative to total capital employed by the entity.
- Total Debt
- Total debt decreased from US$44,553 million in 2021 to US$39,320 million in 2022. It experienced a slight increase to US$39,772 million in 2023, followed by a more substantial rise to US$49,649 million in 2024. A subsequent decrease to US$45,111 million was observed in 2025. This suggests periods of debt reduction followed by increased borrowing, particularly noticeable in 2024.
- Total Capital
- Total capital consistently declined throughout the period, moving from US$80,499 million in 2021 to US$63,584 million in 2025. This continuous reduction in the capital base contributes to the increasing Debt to Capital ratio, as the denominator shrinks while debt levels fluctuate.
- Debt to Capital Ratio – Trend Analysis
- The ratio’s increase from 0.55 in 2021 to 0.75 in 2024 signifies a notable shift in the company’s capital structure, with a greater proportion of funding coming from debt. The slight decrease to 0.71 in 2025 offers a marginal improvement, but the ratio remains significantly higher than its initial value. The increase in 2024 coincides with a substantial increase in total debt and a continued decline in total capital, amplifying the ratio’s upward movement. The trend suggests a potential increase in financial risk, as the entity is becoming more leveraged.
The observed changes in both total debt and total capital are key drivers of the Debt to Capital ratio’s behavior. The consistent decline in total capital, coupled with fluctuations in total debt, warrants further investigation to understand the underlying reasons for these movements and their potential implications for the entity’s long-term financial health.
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Debt to Capital (including Operating Lease Liability)
Bristol-Myers Squibb Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Current operating lease liabilities | 202) | 181) | 162) | 136) | 169) | |
| Non-current operating lease liabilities | 1,826) | 1,370) | 1,530) | 1,261) | 874) | |
| Total debt (including operating lease liability) | 47,139) | 51,200) | 41,464) | 40,717) | 45,596) | |
| Total BMS shareholders’ equity | 18,473) | 16,335) | 29,430) | 31,061) | 35,946) | |
| Total capital (including operating lease liability) | 65,612) | 67,535) | 70,894) | 71,778) | 81,542) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.72 | 0.76 | 0.58 | 0.57 | 0.56 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Amgen Inc. | 0.86 | 0.91 | 0.91 | 0.92 | 0.84 | |
| Danaher Corp. | 0.27 | 0.26 | 0.27 | 0.29 | 0.34 | |
| Eli Lilly & Co. | 0.62 | 0.71 | 0.71 | 0.61 | 0.66 | |
| Gilead Sciences Inc. | 0.53 | 0.59 | 0.53 | 0.55 | 0.56 | |
| Johnson & Johnson | 0.38 | 0.35 | 0.31 | 0.35 | 0.32 | |
| Merck & Co. Inc. | 0.49 | 0.45 | 0.49 | 0.41 | 0.48 | |
| Pfizer Inc. | 0.44 | 0.43 | 0.46 | 0.29 | 0.35 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.40 | 0.44 | 0.45 | 0.47 | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.10 | 0.04 | 0.06 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.51 | 0.52 | 0.50 | 0.45 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.47 | 0.46 | 0.43 | 0.45 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 47,139 ÷ 65,612 = 0.72
2 Click competitor name to see calculations.
The Debt to Capital ratio, including operating lease liability, exhibits an increasing trend over the observed period. Initially, the ratio remained relatively stable, then increased significantly in the later years of the period.
- Debt to Capital Ratio Trend
- In 2021, the Debt to Capital ratio was 0.56. It experienced a slight increase to 0.57 in 2022 and further to 0.58 in 2023. A substantial increase was then observed in 2024, reaching 0.76. The ratio decreased slightly in 2025 to 0.72, but remained significantly higher than the levels observed in the earlier years.
The increase in the Debt to Capital ratio suggests a growing reliance on debt financing relative to the company’s capital base. The most pronounced change occurred between 2023 and 2024, indicating a potentially significant shift in the company’s financial leverage during that period. While the ratio decreased slightly in 2025, it remains elevated, suggesting continued higher leverage compared to prior years.
- Total Debt and Total Capital
- Total debt, including operating lease liability, decreased from US$45,596 million in 2021 to US$40,717 million in 2022, then increased to US$41,464 million in 2023. A substantial increase to US$51,200 million was observed in 2024, followed by a decrease to US$47,139 million in 2025.
- Total capital, including operating lease liability, followed a similar pattern, decreasing from US$81,542 million in 2021 to US$71,778 million in 2022 and US$70,894 million in 2023. It then decreased further to US$67,535 million in 2024 and US$65,612 million in 2025.
- The concurrent decreases in total capital alongside the increases in total debt, particularly in 2024, contributed to the significant rise in the Debt to Capital ratio.
The observed trends warrant further investigation to understand the underlying reasons for the changes in both debt and capital levels, and to assess the implications for the company’s financial risk profile.
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Debt to Assets
Bristol-Myers Squibb Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Total assets | 90,038) | 92,603) | 95,159) | 96,820) | 109,314) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.50 | 0.54 | 0.42 | 0.41 | 0.41 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.50 | 0.44 | 0.46 | 0.52 | |
| Amgen Inc. | 0.60 | 0.65 | 0.67 | 0.60 | 0.54 | |
| Danaher Corp. | 0.22 | 0.21 | 0.22 | 0.23 | 0.27 | |
| Eli Lilly & Co. | 0.38 | 0.43 | 0.39 | 0.33 | 0.35 | |
| Gilead Sciences Inc. | 0.42 | 0.45 | 0.40 | 0.40 | 0.39 | |
| Johnson & Johnson | 0.24 | 0.20 | 0.18 | 0.21 | 0.19 | |
| Merck & Co. Inc. | 0.36 | 0.32 | 0.33 | 0.28 | 0.31 | |
| Pfizer Inc. | 0.31 | 0.30 | 0.32 | 0.18 | 0.21 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.36 | 0.32 | 0.35 | 0.35 | 0.37 | |
| Vertex Pharmaceuticals Inc. | 0.00 | 0.01 | 0.02 | 0.03 | 0.04 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.35 | 0.35 | 0.34 | 0.31 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.32 | 0.30 | 0.28 | 0.30 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 45,111 ÷ 90,038 = 0.50
2 Click competitor name to see calculations.
The Debt-to-Assets ratio exhibits a generally increasing trend over the observed five-year period. Initially, the ratio remained stable at 0.41 for both 2021 and 2022. A slight increase was noted in 2023, reaching 0.42, before a more substantial rise to 0.54 in 2024. The ratio then decreased modestly in 2025, settling at 0.50.
- Debt-to-Assets Ratio Trend
- The ratio indicates the proportion of a company’s assets that are financed by debt. The consistent increase from 2023 to 2024 suggests a growing reliance on debt financing relative to the asset base. While the decrease in 2025 offers a slight moderation, the ratio remains significantly higher than the levels observed in 2021 and 2022.
The increase in the Debt-to-Assets ratio from 0.41 to 0.54 within two years warrants attention. This suggests a potential shift in the company’s capital structure, possibly due to increased borrowing or a decrease in asset value. The subsequent slight decrease in 2025 may indicate efforts to manage debt levels, but the ratio remains elevated.
- Total Debt and Total Assets Relationship
- The observed trend aligns with the changes in Total Debt and Total Assets. While Total Assets experienced a decline over the period, Total Debt increased significantly in 2024, contributing to the substantial rise in the Debt-to-Assets ratio. The decrease in Total Debt in 2025 partially offset the impact of continued asset decline, resulting in a modest reduction of the ratio.
Continued monitoring of this ratio is recommended to assess the long-term implications of the observed trend and the company’s ability to manage its debt obligations effectively.
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Debt to Assets (including Operating Lease Liability)
Bristol-Myers Squibb Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term debt obligations | 2,261) | 2,046) | 3,119) | 4,264) | 4,948) | |
| Long-term debt, excluding current portion | 42,850) | 47,603) | 36,653) | 35,056) | 39,605) | |
| Total debt | 45,111) | 49,649) | 39,772) | 39,320) | 44,553) | |
| Current operating lease liabilities | 202) | 181) | 162) | 136) | 169) | |
| Non-current operating lease liabilities | 1,826) | 1,370) | 1,530) | 1,261) | 874) | |
| Total debt (including operating lease liability) | 47,139) | 51,200) | 41,464) | 40,717) | 45,596) | |
| Total assets | 90,038) | 92,603) | 95,159) | 96,820) | 109,314) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.52 | 0.55 | 0.44 | 0.42 | 0.42 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.51 | 0.50 | 0.45 | 0.46 | 0.53 | |
| Amgen Inc. | 0.61 | 0.66 | 0.67 | 0.61 | 0.56 | |
| Danaher Corp. | 0.24 | 0.22 | 0.23 | 0.25 | 0.28 | |
| Eli Lilly & Co. | 0.39 | 0.44 | 0.41 | 0.34 | 0.36 | |
| Gilead Sciences Inc. | 0.43 | 0.46 | 0.41 | 0.41 | 0.40 | |
| Johnson & Johnson | 0.25 | 0.21 | 0.18 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.37 | 0.33 | 0.34 | 0.29 | 0.33 | |
| Pfizer Inc. | 0.32 | 0.31 | 0.33 | 0.20 | 0.23 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.34 | 0.37 | 0.37 | 0.38 | |
| Vertex Pharmaceuticals Inc. | 0.08 | 0.08 | 0.04 | 0.05 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | 0.37 | 0.35 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.32 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 47,139 ÷ 90,038 = 0.52
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, exhibits a generally increasing trend over the observed five-year period. While initially stable, the ratio demonstrates a notable increase in later years, suggesting a growing reliance on debt financing relative to the company’s asset base.
- Overall Trend
- The ratio remained consistent at 0.42 for both 2021 and 2022. A gradual increase was observed in 2023, reaching 0.44. This was followed by a more substantial rise to 0.55 in 2024, before decreasing slightly to 0.52 in 2025.
- Total Debt
- Total debt, including operating lease liability, decreased from US$45,596 million in 2021 to US$40,717 million in 2022. It then experienced a modest increase to US$41,464 million in 2023, followed by a significant jump to US$51,200 million in 2024. The value decreased to US$47,139 million in 2025.
- Total Assets
- Total assets experienced a consistent decline throughout the period, decreasing from US$109,314 million in 2021 to US$90,038 million in 2025. This continuous reduction in the asset base, coupled with the fluctuations in total debt, contributes to the observed trend in the Debt to Assets ratio.
- Ratio Implications
- The increase in the Debt to Assets ratio, particularly the jump in 2024, indicates that the company is financing a greater proportion of its assets with debt. While a moderate level of debt can be beneficial, a consistently increasing ratio may signal heightened financial risk and reduced financial flexibility. The slight decrease in 2025 offers a minor offset to this trend, but the ratio remains elevated compared to earlier years.
The combined effect of decreasing assets and fluctuating debt levels has resulted in a more leveraged financial position as measured by the Debt to Assets ratio. Continued monitoring of these trends is warranted to assess the long-term implications for the company’s financial health.
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Financial Leverage
Bristol-Myers Squibb Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 90,038) | 92,603) | 95,159) | 96,820) | 109,314) | |
| Total BMS shareholders’ equity | 18,473) | 16,335) | 29,430) | 31,061) | 35,946) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 4.87 | 5.67 | 3.23 | 3.12 | 3.04 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | 40.65 | 13.00 | 8.04 | 9.51 | |
| Amgen Inc. | 10.46 | 15.63 | 15.59 | 17.79 | 9.13 | |
| Danaher Corp. | 1.59 | 1.57 | 1.58 | 1.68 | 1.84 | |
| Eli Lilly & Co. | 4.24 | 5.55 | 5.94 | 4.65 | 5.44 | |
| Gilead Sciences Inc. | 2.60 | 3.05 | 2.72 | 2.97 | 3.23 | |
| Johnson & Johnson | 2.44 | 2.52 | 2.44 | 2.44 | 2.46 | |
| Merck & Co. Inc. | 2.60 | 2.53 | 2.84 | 2.37 | 2.77 | |
| Pfizer Inc. | 2.41 | 2.42 | 2.54 | 2.06 | 2.35 | |
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.29 | 1.27 | 1.29 | 1.36 | |
| Thermo Fisher Scientific Inc. | 2.07 | 1.96 | 2.11 | 2.21 | 2.33 | |
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.29 | 1.30 | 1.33 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.87 | 2.93 | 2.85 | 2.62 | 2.86 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.72 | 2.75 | 2.70 | 2.57 | 2.69 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Financial leverage = Total assets ÷ Total BMS shareholders’ equity
= 90,038 ÷ 18,473 = 4.87
2 Click competitor name to see calculations.
An examination of the provided financial information reveals a shifting pattern in the company’s financial leverage over the five-year period. Total assets experienced a consistent decline from 2021 through 2025, while shareholders’ equity also generally decreased, though with a slight increase in the final year. The financial leverage ratio, calculated as total assets divided by total shareholders’ equity, demonstrates a notable increase in risk profile over time.
- Financial Leverage Trend
- The financial leverage ratio increased from 3.04 in 2021 to 3.23 in 2023, indicating a growing reliance on debt financing relative to equity. This trend suggests an increasing financial risk. A significant jump occurred in 2024, with the ratio reaching 5.67, representing a substantial increase in leverage. While the ratio decreased to 4.87 in 2025, it remained considerably higher than the levels observed in the earlier years of the period.
- Shareholders’ Equity
- Total shareholders’ equity decreased from US$35,946 million in 2021 to US$29,430 million in 2023, contributing to the rising leverage ratio. A sharp decline was observed in 2024, falling to US$16,335 million, which further exacerbated the increase in financial leverage. A modest recovery to US$18,473 million occurred in 2025, but equity levels remained significantly below those of 2021.
- Total Assets
- Total assets exhibited a consistent downward trend throughout the period, decreasing from US$109,314 million in 2021 to US$90,038 million in 2025. This contraction in asset base, coupled with the decline in shareholders’ equity, amplified the increase in the financial leverage ratio.
The combined effect of decreasing equity and decreasing assets resulted in a substantial increase in financial leverage, particularly in 2024. While leverage decreased slightly in 2025, it remained at a heightened level compared to the beginning of the period, suggesting a potentially more vulnerable financial position.
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Interest Coverage
Bristol-Myers Squibb Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | 7,054) | (8,948) | 8,025) | 6,327) | 6,994) | |
| Add: Net income attributable to noncontrolling interest | 1) | 15) | 15) | 18) | 20) | |
| Add: Income tax expense | 2,273) | 554) | 400) | 1,368) | 1,084) | |
| Add: Interest expense | 1,891) | 1,947) | 1,166) | 1,232) | 1,334) | |
| Earnings before interest and tax (EBIT) | 11,219) | (6,432) | 9,606) | 8,945) | 9,432) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 5.93 | -3.30 | 8.24 | 7.26 | 7.07 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.28 | 2.32 | 3.81 | 7.04 | 6.36 | |
| Amgen Inc. | 4.26 | 2.46 | 3.73 | 6.22 | 6.60 | |
| Danaher Corp. | 16.97 | 17.71 | 18.64 | 40.30 | 32.92 | |
| Eli Lilly & Co. | 29.75 | 17.24 | 14.49 | 21.53 | 19.12 | |
| Gilead Sciences Inc. | 10.57 | 1.71 | 8.27 | 7.22 | 9.27 | |
| Johnson & Johnson | 34.55 | 23.10 | 20.51 | 79.71 | 125.46 | |
| Merck & Co. Inc. | 16.52 | 16.69 | 2.65 | 18.09 | 18.22 | |
| Pfizer Inc. | 3.82 | 3.60 | 1.48 | 29.05 | 19.83 | |
| Regeneron Pharmaceuticals Inc. | 120.42 | 87.59 | 58.52 | 82.80 | 163.75 | |
| Thermo Fisher Scientific Inc. | 6.12 | 6.03 | 5.54 | 11.56 | 17.49 | |
| Vertex Pharmaceuticals Inc. | 350.11 | 9.12 | 100.32 | 78.23 | 45.40 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 9.83 | 5.51 | 6.43 | 15.40 | 14.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | 8.96 | 6.11 | 7.51 | 14.75 | 14.14 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 11,219 ÷ 1,891 = 5.93
2 Click competitor name to see calculations.
The interest coverage ratio exhibited fluctuating performance over the five-year period. Initial years demonstrated a generally positive trend, followed by a significant decline and subsequent recovery.
- Overall Trend
- From 2021 to 2023, the interest coverage ratio increased steadily, indicating an improving ability to meet interest obligations. However, 2024 saw a substantial decrease, resulting in a negative ratio. The ratio then recovered notably in 2025, though not to the levels observed prior to 2024.
- Earnings Before Interest and Tax (EBIT)
- EBIT remained relatively stable between 2021 and 2023, fluctuating within a narrow range. A significant decline occurred in 2024, contributing to the negative interest coverage ratio. A strong rebound in EBIT was observed in 2025, driving the improvement in the interest coverage ratio.
- Interest Expense
- Interest expense demonstrated a gradual decrease from 2021 to 2023. It then increased in 2024 and 2025, though remaining below the levels seen in the earlier years of the period. The increase in interest expense in 2024, coupled with the decline in EBIT, exacerbated the negative interest coverage ratio.
- Interest Coverage Ratio – Specific Observations
- The ratio stood at 7.07 in 2021 and increased to 7.26 in 2022, and further to 8.24 in 2023. The dramatic drop to -3.30 in 2024 signifies that earnings were insufficient to cover interest obligations. The recovery to 5.93 in 2025 indicates a restored, though diminished, capacity to cover interest expenses.
The volatility in the interest coverage ratio highlights a sensitivity to changes in both earnings and interest expense. The negative value in 2024 warrants further investigation into the underlying factors contributing to the substantial decline in profitability.
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Fixed Charge Coverage
Bristol-Myers Squibb Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | 7,054) | (8,948) | 8,025) | 6,327) | 6,994) | |
| Add: Net income attributable to noncontrolling interest | 1) | 15) | 15) | 18) | 20) | |
| Add: Income tax expense | 2,273) | 554) | 400) | 1,368) | 1,084) | |
| Add: Interest expense | 1,891) | 1,947) | 1,166) | 1,232) | 1,334) | |
| Earnings before interest and tax (EBIT) | 11,219) | (6,432) | 9,606) | 8,945) | 9,432) | |
| Add: Operating lease cost | 293) | 290) | 317) | 224) | 281) | |
| Earnings before fixed charges and tax | 11,512) | (6,142) | 9,923) | 9,169) | 9,713) | |
| Interest expense | 1,891) | 1,947) | 1,166) | 1,232) | 1,334) | |
| Operating lease cost | 293) | 290) | 317) | 224) | 281) | |
| Fixed charges | 2,184) | 2,237) | 1,483) | 1,456) | 1,615) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 5.27 | -2.75 | 6.69 | 6.30 | 6.01 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.12 | 2.24 | 3.59 | 6.54 | 5.90 | |
| Amgen Inc. | 3.97 | 2.37 | 3.55 | 5.52 | 5.67 | |
| Danaher Corp. | 8.29 | 9.05 | 9.55 | 13.41 | 10.85 | |
| Eli Lilly & Co. | 29.75 | 13.81 | 10.98 | 15.17 | 13.33 | |
| Gilead Sciences Inc. | 9.21 | 1.61 | 7.18 | 6.30 | 8.15 | |
| Johnson & Johnson | 28.82 | 18.47 | 16.50 | 38.72 | 48.16 | |
| Merck & Co. Inc. | 12.84 | 13.31 | 2.27 | 13.69 | 13.08 | |
| Pfizer Inc. | 3.37 | 3.13 | 1.34 | 18.79 | 14.22 | |
| Regeneron Pharmaceuticals Inc. | 66.71 | 53.13 | 46.55 | 68.67 | 138.96 | |
| Thermo Fisher Scientific Inc. | 5.04 | 5.01 | 4.61 | 8.12 | 12.19 | |
| Vertex Pharmaceuticals Inc. | 23.32 | 2.85 | 48.66 | 47.97 | 29.62 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.45 | 4.80 | 5.40 | 11.85 | 11.49 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 7.45 | 5.15 | 6.08 | 10.95 | 10.48 | |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,512 ÷ 2,184 = 5.27
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited fluctuating performance between 2021 and 2025. Initially, the metric demonstrated improvement, followed by a significant decline and subsequent recovery.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax generally increased from $9,713 million in 2021 to $9,923 million in 2023, indicating a strengthening ability to cover fixed obligations. However, a substantial decrease to -$6,142 million occurred in 2024, before rebounding to $11,512 million in 2025. This volatility suggests significant underlying operational or financial events impacting profitability.
- Fixed Charges
- Fixed charges decreased from $1,615 million in 2021 to $1,456 million in 2022, then experienced a slight increase to $1,483 million in 2023. A notable rise to $2,237 million was observed in 2024, followed by a modest decrease to $2,184 million in 2025. The increase in 2024 likely contributed to the decline in fixed charge coverage during that period.
- Fixed Charge Coverage
- The fixed charge coverage ratio improved from 6.01 in 2021 to 6.69 in 2023, signifying an increasing capacity to meet fixed financial obligations. A dramatic decline to -2.75 occurred in 2024, indicating the company’s earnings were insufficient to cover its fixed charges. The ratio recovered to 5.27 in 2025, though remaining below the levels observed in the earlier years of the period. The negative value in 2024 is a significant concern and warrants further investigation.
The substantial fluctuation in fixed charge coverage, particularly the negative value in 2024, highlights potential vulnerabilities in the company’s financial structure. While the recovery in 2025 is positive, sustained monitoring of these trends is recommended to assess the long-term stability of the company’s ability to service its fixed obligations.
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