Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Bristol-Myers Squibb Co., profitability ratios
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Bristol-Myers Squibb Co.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Bristol-Myers Squibb Co.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Bristol-Myers Squibb Co.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Bristol-Myers Squibb Co.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Bristol-Myers Squibb Co.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
Bristol-Myers Squibb Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | 30,745 | 18,067 | 16,014 | 14,710 | 14,481 | |
| Revenues | 42,518 | 26,145 | 22,561 | 20,776 | 19,427 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 72.31% | 69.10% | 70.98% | 70.80% | 74.54% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 50.49% | 52.46% | 51.32% | 47.75% | 54.09% | |
| AbbVie Inc. | 66.41% | 77.64% | 76.44% | 75.05% | 77.25% | |
| Amgen Inc. | 74.59% | 80.38% | 81.80% | 81.33% | 80.99% | |
| Eli Lilly & Co. | 77.66% | 78.85% | 73.81% | 73.46% | 73.35% | |
| Gilead Sciences Inc. | — | 78.86% | 77.61% | 82.97% | 85.77% | |
| Illumina Inc. | 68.01% | 69.63% | 69.01% | 66.35% | 69.48% | |
| Johnson & Johnson | 65.58% | 66.42% | 66.79% | 66.84% | 69.84% | |
| Merck & Co. Inc. | — | 69.87% | 68.06% | 68.16% | 65.10% | |
| Pfizer Inc. | — | 80.25% | 79.03% | 78.61% | 76.66% | |
| Regeneron Pharmaceuticals Inc. | 86.82% | 90.05% | 93.53% | 93.24% | 93.83% | |
| Vertex Pharmaceuticals Inc. | 88.14% | 86.84% | 86.56% | 88.95% | 87.64% | |
| Zoetis Inc. | 69.18% | 68.18% | 67.19% | 66.55% | 65.92% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 30,745 ÷ 42,518 = 72.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Bristol-Myers Squibb Co.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Operating Profit Margin
Bristol-Myers Squibb Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | (9,185) | 5,913 | 5,118 | 3,612 | 4,630 | |
| Revenues | 42,518 | 26,145 | 22,561 | 20,776 | 19,427 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -21.60% | 22.62% | 22.69% | 17.39% | 23.83% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 15.48% | 14.21% | 11.94% | 6.30% | 15.27% | |
| AbbVie Inc. | 24.81% | 39.03% | 19.49% | 33.99% | 36.60% | |
| Amgen Inc. | 37.70% | 43.57% | 45.55% | 45.76% | 44.74% | |
| Eli Lilly & Co. | 24.69% | 22.29% | 15.15% | 9.38% | 16.30% | |
| Gilead Sciences Inc. | — | 19.38% | 37.83% | 55.04% | 58.87% | |
| Illumina Inc. | 17.91% | 27.80% | 26.49% | 22.02% | 24.48% | |
| Johnson & Johnson | 23.60% | 24.15% | 24.27% | 24.07% | 28.72% | |
| Merck & Co. Inc. | — | 24.77% | 19.62% | 16.28% | 13.51% | |
| Pfizer Inc. | — | 25.46% | 26.10% | 25.92% | 22.73% | |
| Regeneron Pharmaceuticals Inc. | 42.09% | 28.10% | 37.77% | 35.41% | 27.38% | |
| Vertex Pharmaceuticals Inc. | 46.03% | 28.77% | 20.84% | 4.95% | 0.58% | |
| Zoetis Inc. | 33.62% | 31.42% | 31.12% | 32.15% | 28.48% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | — | 25.89% | 24.29% | 25.36% | 28.18% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | — | 18.67% | 17.79% | 18.39% | 19.66% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × -9,185 ÷ 42,518 = -21.60%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Bristol-Myers Squibb Co.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
Bristol-Myers Squibb Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (9,015) | 3,439 | 4,920 | 1,007 | 4,457 | |
| Revenues | 42,518 | 26,145 | 22,561 | 20,776 | 19,427 | |
| Profitability Ratio | ||||||
| Net profit margin1 | -21.20% | 13.15% | 21.81% | 4.85% | 22.94% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Abbott Laboratories | 12.99% | 11.56% | 7.74% | 1.74% | 6.71% | |
| AbbVie Inc. | 10.08% | 23.69% | 17.36% | 18.82% | 23.22% | |
| Amgen Inc. | 29.97% | 35.32% | 37.25% | 9.08% | 35.27% | |
| Eli Lilly & Co. | 25.24% | 37.27% | 13.16% | -0.89% | 12.90% | |
| Gilead Sciences Inc. | — | 24.35% | 25.16% | 18.03% | 45.07% | |
| Illumina Inc. | 20.25% | 28.28% | 24.78% | 26.38% | 19.29% | |
| Johnson & Johnson | 17.82% | 18.42% | 18.75% | 1.70% | 23.01% | |
| Merck & Co. Inc. | — | 21.01% | 14.71% | 5.97% | 9.85% | |
| Pfizer Inc. | — | 31.45% | 20.79% | 40.55% | 13.66% | |
| Regeneron Pharmaceuticals Inc. | 41.35% | 26.91% | 36.42% | 20.41% | 18.42% | |
| Vertex Pharmaceuticals Inc. | 43.70% | 28.27% | 68.80% | 10.59% | -6.58% | |
| Zoetis Inc. | 24.54% | 23.96% | 24.52% | 16.28% | 16.80% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | — | 23.19% | 19.80% | 12.42% | 20.64% | |
| Net Profit Margin, Industry | ||||||
| Health Care | — | 16.41% | 14.00% | 9.98% | 14.08% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
1 2020 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to BMS ÷ Revenues
= 100 × -9,015 ÷ 42,518 = -21.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Bristol-Myers Squibb Co.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Equity (ROE)
Bristol-Myers Squibb Co., ROE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (9,015) | 3,439 | 4,920 | 1,007 | 4,457 | |
| Total Bristol-Myers Squibb Company shareholders’ equity | 37,822 | 51,598 | 14,031 | 11,741 | 16,177 | |
| Profitability Ratio | ||||||
| ROE1 | -23.84% | 6.66% | 35.07% | 8.58% | 27.55% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Abbott Laboratories | 13.71% | 11.86% | 7.76% | 1.54% | 6.82% | |
| AbbVie Inc. | 35.30% | — | — | 104.16% | 128.41% | |
| Amgen Inc. | 77.20% | 81.07% | 67.15% | 7.84% | 25.85% | |
| Eli Lilly & Co. | 109.79% | 319.09% | 32.88% | -1.76% | 19.54% | |
| Gilead Sciences Inc. | — | 23.91% | 25.51% | 22.64% | 71.48% | |
| Illumina Inc. | 13.98% | 21.72% | 21.98% | 26.41% | 21.06% | |
| Johnson & Johnson | 23.25% | 25.42% | 25.60% | 2.16% | 23.49% | |
| Merck & Co. Inc. | — | 37.99% | 23.30% | 6.97% | 9.78% | |
| Pfizer Inc. | — | 25.77% | 17.59% | 29.88% | 12.12% | |
| Regeneron Pharmaceuticals Inc. | 31.86% | 19.08% | 27.91% | 19.51% | 20.13% | |
| Vertex Pharmaceuticals Inc. | 31.22% | 19.34% | 47.28% | 12.99% | -9.69% | |
| Zoetis Inc. | 43.46% | 55.39% | 65.35% | 48.81% | 55.21% | |
| ROE, Sector | ||||||
| Pharmaceuticals & Biotechnology | — | 29.60% | 27.94% | 14.55% | 23.11% | |
| ROE, Industry | ||||||
| Health Care | — | 23.37% | 21.29% | 13.59% | 18.84% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
1 2020 Calculation
ROE = 100 × Net earnings (loss) attributable to BMS ÷ Total Bristol-Myers Squibb Company shareholders’ equity
= 100 × -9,015 ÷ 37,822 = -23.84%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Bristol-Myers Squibb Co.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Bristol-Myers Squibb Co., ROA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (9,015) | 3,439 | 4,920 | 1,007 | 4,457 | |
| Total assets | 118,481 | 129,944 | 34,986 | 33,551 | 33,707 | |
| Profitability Ratio | ||||||
| ROA1 | -7.61% | 2.65% | 14.06% | 3.00% | 13.22% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Abbott Laboratories | 6.20% | 5.43% | 3.53% | 0.63% | 2.66% | |
| AbbVie Inc. | 3.07% | 8.84% | 9.58% | 7.50% | 9.01% | |
| Amgen Inc. | 11.54% | 13.13% | 12.64% | 2.48% | 9.95% | |
| Eli Lilly & Co. | 13.28% | 21.17% | 7.36% | -0.45% | 7.05% | |
| Gilead Sciences Inc. | — | 8.74% | 8.57% | 6.58% | 23.70% | |
| Illumina Inc. | 8.65% | 13.70% | 11.87% | 13.81% | 10.81% | |
| Johnson & Johnson | 8.41% | 9.59% | 10.00% | 0.83% | 11.71% | |
| Merck & Co. Inc. | — | 11.66% | 7.53% | 2.72% | 4.11% | |
| Pfizer Inc. | — | 9.72% | 7.00% | 12.40% | 4.20% | |
| Regeneron Pharmaceuticals Inc. | 20.47% | 14.29% | 20.83% | 13.67% | 12.84% | |
| Vertex Pharmaceuticals Inc. | 23.07% | 14.15% | 33.57% | 7.43% | -3.87% | |
| Zoetis Inc. | 12.04% | 12.99% | 13.25% | 10.06% | 10.73% | |
| ROA, Sector | ||||||
| Pharmaceuticals & Biotechnology | — | 9.30% | 9.07% | 5.04% | 8.67% | |
| ROA, Industry | ||||||
| Health Care | — | 8.44% | 7.94% | 5.12% | 7.42% | |
Based on: 10-K (filing date: 2021-02-10), 10-K (filing date: 2020-02-24), 10-K (filing date: 2019-02-25), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-21).
1 2020 Calculation
ROA = 100 × Net earnings (loss) attributable to BMS ÷ Total assets
= 100 × -9,015 ÷ 118,481 = -7.61%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Bristol-Myers Squibb Co.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |