Bristol-Myers Squibb Co. (NYSE:BMY)

The financial data reflects several notable trends in the leverage and capital structure ratios over the observed periods.

Debt to Equity Ratio

The debt to equity ratio generally experienced moderate fluctuations in the earlier periods, ranging close to 1.2 to 1.4 from March 2021 through December 2023, suggesting relative stability in the balance between debt and shareholder equity. However, starting in March 2024, there is a sharp increase, peaking at 3.38, and maintaining elevated levels above 2.6 through to September 2025. This indicates a significant increase in leverage, with the company assuming more debt relative to equity over the most recent observed years.

Debt to Capital Ratio

This ratio remained relatively stable from March 2021 to December 2023, fluctuating narrowly around 0.54 to 0.59. Beginning March 2024, a noticeable jump occurs, with the ratio climbing above 0.73 and slightly declining thereafter but remaining significantly higher than historical levels. This trend confirms that the proportion of debt within the company's total capital structure has increased substantially during the later periods.

Debt to Assets Ratio

The debt to assets ratio was steady, hovering around 0.40 to 0.44 until December 2023. From March 2024 onward, a clear rise is evident, with the ratio stabilizing around 0.51 to 0.56. This increase signals a greater portion of the company's assets being financed through debt during the more recent periods, consistent with the rise in leverage seen in other ratios.

Financial Leverage Ratio

Financial leverage remained relatively consistent from March 2021 to December 2023, generally ranging between 2.9 and 3.3, indicating a stable amplification of equity returns via debt. Beginning in March 2024, a pronounced increase ensued, with the ratio approximately doubling to levels between 5.2 and 6.0. This substantial change reflects a significant escalation in the company's use of debt financing relative to equity, amplifying its financial leverage considerably in the last observed years.

Overall, the data indicate a period of relatively stable leverage ratios from early 2021 through the end of 2023, followed by a marked and sustained increase in leverage from early 2024 onward. This change suggests a strategic shift towards greater reliance on debt financing, resulting in higher financial risk through increased obligations relative to equity and assets. The persistence of these elevated leverage ratios across multiple periods implies that the company has committed to a more aggressive capital structure for at least the medium term.

Total Debt

The total debt exhibited a general declining trend from the beginning of 2021 through late 2023, decreasing from approximately $46.3 billion to $39.8 billion. This trend reversed sharply starting in early 2024, with debt levels increasing significantly to exceed $55.6 billion by the first quarter of 2024 before gradually decreasing again but remaining elevated around $49.0 billion by the third quarter of 2025.

Total BMS Shareholders’ Equity

Shareholders' equity showed a declining pattern from the first quarter of 2021 through late 2023, falling from about $37.6 billion to roughly $29.4 billion. This decline became more pronounced in 2024, with equity dropping sharply to a low of approximately $16.5 billion in early 2024. Thereafter, equity values stabilized somewhat but remained at lower levels between $16.3 billion and $18.6 billion from 2024 through the third quarter of 2025.

Debt to Equity Ratio

The debt to equity ratio fluctuated mildly around values close to 1.2 to 1.4 from early 2021 until the end of 2023, underscoring a relatively balanced leverage position during this period. Starting in 2024, the ratio escalated abruptly, peaking at 3.38 in the first quarter of 2024, reflecting a substantial shift toward higher leverage as debt increased while equity simultaneously decreased. Although the ratio declined slightly after this peak, it remained elevated above 2.6 through the third quarter of 2025, indicating a sustained higher financial leverage level compared to prior years.

Summary

The data reveal that the entity experienced a period of debt reduction and moderate equity decline from 2021 to 2023, suggesting efforts to deleverage and maintain a balanced capital structure. However, in 2024, there was a marked deterioration in financial leverage, driven by a significant increase in debt coupled with a sharp fall in shareholders’ equity. This led to a substantial increase in the debt to equity ratio, signaling increased financial risk and possibly indicating significant financing activities or market events impacting equity valuation. The elevated leverage persisted through 2025, implying an altered capital strategy or conditions that maintained higher indebtedness relative to equity during this time frame.

The financial data reveals several notable trends over the observed periods, particularly in the areas of total debt, total capital, and the debt to capital ratio.

Total Debt

Total debt initially decreased from US$46,282 million at the end of Q1 2021 to US$37,830 million by Q1 2023, indicating a gradual reduction in debt over two years. However, starting from Q1 2024, total debt sharply increased to US$55,677 million, marking a significant rise compared to prior quarters. Following this peak, debt levels trended downward again, stabilizing around the US$49,000 million range towards Q3 2025.

Total Capital

Total capital showed a general declining trend from US$83,887 million in Q1 2021 to US$65,602 million in Q3 2023, reflecting a contraction in the company's capital base. There was a partial recovery observed in late 2023 and early 2024, reaching US$72,167 million, but subsequently capital levels decreased again to approximately US$67,530 million by Q3 2025. This suggests some volatility but an overall mild downward pressure on total capital over the long term.

Debt to Capital Ratio

The debt to capital ratio remained relatively stable around 0.54 to 0.56 from Q1 2021 through Q4 2023, indicating a consistent capital structure with roughly balanced levels of debt and equity financing. Beginning in early 2024, however, there was a marked increase in this ratio, peaking at 0.77 in Q1 2024. This inflection aligns with the spike in total debt and signals a shift toward greater leverage in the capital structure. Subsequently, the ratio decreased somewhat but remained elevated near 0.73 by late 2025, underscoring a sustained higher reliance on debt financing relative to total capital.

In summary, the analysis indicates that the company managed to reduce its debt burden and capital base modestly over the early part of the period but experienced a significant increase in debt levels starting in 2024, which shifted its leverage profile substantially. Although some deleveraging occurred after this peak, the firm maintained a higher debt to capital ratio into 2025, suggesting a strategic change toward more leveraged capital structure. The variations in total capital correspond partially to these debt movements, highlighting fluctuations in the firm's financing composition during the timeframe.

Total Debt

The total debt demonstrates a general downward trend from March 31, 2021, through the end of 2023, decreasing from approximately $46.3 billion to around $39.8 billion. There is some fluctuation within this period, with minor increases in certain quarters, but the overall trend is a reduction in debt. However, starting in early 2024, total debt increases significantly, peaking at $55.7 billion by the end of the first quarter of 2024, before gradually declining again but remaining substantially elevated compared to prior years, ending near $49.0 billion by the third quarter of 2025.

Total Assets

Total assets show a gradual decline from roughly $112.4 billion in the first quarter of 2021 to about $91.3 billion by the third quarter of 2023. This trend indicates a consistent reduction in asset base over these periods. However, an upward shift occurs beginning in the last quarter of 2023, with assets increasing to approximately $99.0 billion by the first quarter of 2024. Subsequently, assets fluctuate moderately but demonstrate a mild upward tendency towards the end of the period, reaching around $96.9 billion by the third quarter of 2025.

Debt to Assets Ratio

The debt to assets ratio remains relatively stable around 0.40 to 0.42 for most of the period from 2021 through 2023, indicating a consistent leverage ratio. This stability suggests balanced financial management in relation to debt and asset levels during these years. In 2024, a considerable increase in leverage is evident as the ratio sharply rises to around 0.56 at the beginning of this year. While it declines slightly thereafter, the ratio remains elevated above previous levels throughout 2024 and 2025, stabilizing slightly above 0.50. This reflects a higher relative debt load compared to assets in recent years, signaling a shift towards increased financial leverage.

Total assets

Over the observed periods, total assets demonstrate a generally declining trend from around 112.4 billion USD at the end of the first quarter of 2021 to a low near 92.6 billion USD at the end of 2024. Starting from 2025, there is a reversal in this decline, as total assets increase substantially, reaching approximately 96.9 billion USD by the third quarter of 2025. This fluctuation indicates a significant reduction in asset base over the initial years followed by a recovery phase toward the most recent periods.

Total BMS shareholders’ equity

Shareholders’ equity initially falls from 37.6 billion USD in early 2021 to about 31 billion USD by the end of 2022. A sharp drop is observed between late 2022 and early 2024, with equity decreasing from roughly 29.4 billion USD to as low as 16.3 billion USD. Post this decline, a modest recovery in equity is evidenced through 2024 and 2025, ending near 18.6 billion USD in the latest reported quarter. This significant dip followed by a partial rebound suggests notable changes in net asset value or capital structure within the period.

Financial leverage

The financial leverage ratio exhibits relative stability around values near 3.0 throughout 2021 and 2022, suggesting consistent use of debt relative to equity during this time. However, starting in early 2023, there is a marked increase in leverage, peaking above 6.0 by the first quarter of 2024. Subsequently, leverage ratios remain elevated, fluctuating between approximately 5.2 and 5.7 through 2025. This escalation indicates a substantial increase in the company’s reliance on debt financing relative to its equity base in the later periods.