Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Bristol-Myers Squibb Co., profitability ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Gross Profit Margin
- The gross profit margin demonstrated an overall declining trend over the five-year period. It peaked in 2021 at 78.57%, then gradually decreased each year to 71.08% by the end of 2024. This indicates a reduction in the percentage of revenue retained after accounting for the cost of goods sold, suggesting possible increased production costs or pricing pressures.
- Operating Profit Margin
- Operating profit margin showed significant volatility. It transitioned from a negative margin of -21.6% in 2020 to positive territory in 2021 reaching 15.91%, and further increased slightly in 2022 to 17.96%. However, it declined in 2023 to 16.18%, before deteriorating sharply to -15.5% by 2024. This fluctuation reflects changes in core operational efficiency, with the notable decline in 2024 indicating operating challenges or increased operating expenses.
- Net Profit Margin
- Net profit margin followed a pattern similar to the operating margin. Beginning with a negative margin of -21.2% in 2020, it improved to positive levels in 2021 (15.08%) and remained relatively stable through 2023, peaking at 17.83%. The margin then fell substantially to -18.53% in 2024. This indicates that despite improved profitability in prior years, the company experienced a significant net loss in the most recent year.
- Return on Equity (ROE)
- Return on equity exhibited considerable volatility. It rose from a negative -23.84% in 2020 to positive results beginning in 2021 (19.46%) and peaked in 2023 at 27.27%, reflecting strong shareholder returns during this period. Nevertheless, ROE plunged dramatically to -54.78% in 2024, which could signal severe disruptions affecting the company’s equity profitability.
- Return on Assets (ROA)
- Return on assets followed a comparable trend, recovering from a negative -7.61% in 2020 to consistent positive values from 2021 through 2023, with a peak at 8.43% in 2023. The return then reversed sharply in 2024, falling to -9.66%, indicating diminished asset utilization efficiency and negative profitability on assets during that year.
Return on Sales
Return on Investment
Gross Profit Margin
Bristol-Myers Squibb Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | 34,332) | 34,313) | 36,022) | 36,445) | 30,745) | |
| Revenues | 48,300) | 45,006) | 46,159) | 46,385) | 42,518) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 71.08% | 76.24% | 78.04% | 78.57% | 72.31% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 69.99% | 62.42% | 70.00% | 68.96% | 66.41% | |
| Amgen Inc. | 59.85% | 68.60% | 74.17% | 73.44% | 74.59% | |
| Danaher Corp. | 59.50% | 58.74% | 60.21% | 60.95% | 55.98% | |
| Eli Lilly & Co. | 81.31% | 79.25% | 76.77% | 74.18% | 77.66% | |
| Gilead Sciences Inc. | 78.15% | 75.87% | 79.03% | 75.56% | 81.23% | |
| Johnson & Johnson | 69.07% | 68.82% | 67.26% | 68.16% | 65.58% | |
| Merck & Co. Inc. | 76.32% | 73.17% | 70.63% | 72.02% | 67.74% | |
| Pfizer Inc. | 71.94% | 58.10% | 66.05% | 62.48% | 79.63% | |
| Regeneron Pharmaceuticals Inc. | 86.13% | 86.16% | 87.18% | 84.83% | 86.82% | |
| Thermo Fisher Scientific Inc. | 41.28% | 39.90% | 42.24% | 50.08% | 49.67% | |
| Vertex Pharmaceuticals Inc. | 86.11% | 87.21% | 87.90% | 88.06% | 88.14% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 34,332 ÷ 48,300 = 71.08%
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin increased significantly from 30,745 million USD in 2020 to a peak of 36,445 million USD in 2021. Following this peak, it experienced a slight decrease to 36,022 million USD in 2022. The decline continued in 2023, reaching 34,313 million USD, before stabilizing in 2024 at 34,332 million USD. The trend indicates initial growth followed by a gradual decline and eventual stabilization near the recent lower levels.
- Revenues
- Revenues showed a general upward trend over the analyzed period. Starting at 42,518 million USD in 2020, revenues rose to 46,385 million USD in 2021. A marginal decline occurred in 2022 to 46,159 million USD and further to 45,006 million USD in 2023. However, in 2024 revenues rebounded notably to 48,300 million USD, marking the highest value in the period and suggesting a recovery in sales or business activity.
- Gross Profit Margin Percentage
- The gross profit margin percentage peaked at 78.57% in 2021, increasing sharply from 72.31% in 2020. Subsequently, this ratio declined gradually, recording 78.04% in 2022, then decreasing to 76.24% in 2023, and falling further to 71.08% in 2024. This downward trend in the gross profit margin percentage suggests rising cost pressures or changes in the product mix affecting profitability despite the increase in revenues in 2024.
Operating Profit Margin
Bristol-Myers Squibb Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | (7,486) | 7,282) | 8,289) | 7,378) | (9,185) | |
| Revenues | 48,300) | 45,006) | 46,159) | 46,385) | 42,518) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -15.50% | 16.18% | 17.96% | 15.91% | -21.60% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 16.22% | 23.49% | 31.21% | 31.89% | 24.81% | |
| Amgen Inc. | 22.66% | 29.35% | 38.57% | 31.44% | 37.70% | |
| Danaher Corp. | 20.37% | 21.77% | 27.61% | 25.35% | 18.99% | |
| Eli Lilly & Co. | 28.64% | 18.92% | 24.97% | 22.45% | 24.69% | |
| Gilead Sciences Inc. | 5.81% | 28.24% | 27.17% | 36.72% | 16.72% | |
| Johnson & Johnson | 23.42% | 24.90% | 24.63% | 24.95% | 23.60% | |
| Merck & Co. Inc. | 31.03% | 3.92% | 30.27% | 25.74% | 16.47% | |
| Pfizer Inc. | 19.51% | 2.15% | 35.37% | 24.70% | 20.92% | |
| Regeneron Pharmaceuticals Inc. | 28.10% | 30.85% | 38.93% | 55.67% | 42.09% | |
| Thermo Fisher Scientific Inc. | 17.11% | 16.00% | 18.69% | 25.57% | 24.19% | |
| Vertex Pharmaceuticals Inc. | -2.11% | 38.83% | 48.23% | 36.73% | 46.03% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.84% | 18.01% | 28.59% | 26.98% | 18.87% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 10.05% | 10.60% | 15.03% | 14.99% | 11.62% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × -7,486 ÷ 48,300 = -15.50%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income demonstrates significant volatility over the analyzed periods. Starting with a substantial operating loss of $9,185 million in 2020, the company experienced a strong recovery in 2021 with a positive operating income of $7,378 million. This upward trend continued into 2022, reaching $8,289 million. However, the operating income declined somewhat in 2023 to $7,282 million, indicating a slight contraction. In 2024, the company reverted to an operating loss of $7,486 million, suggesting renewed challenges impacting profitability.
- Revenues
- Revenues showed a generally positive trajectory from 2020 through 2024, with a modest overall growth. Beginning at $42,518 million in 2020, revenues increased to $46,385 million in 2021. The revenue then slightly decreased in 2022 to $46,159 million and continued a minor decline in 2023 to $45,006 million. In 2024, revenues rose again to $48,300 million, reaching the highest level in the period under review. This pattern suggests a relatively stable revenue base with minor fluctuations year to year, culminating in renewed growth in the latest period.
- Operating Profit Margin
- The operating profit margin closely reflects the fluctuations seen in operating income, illustrating significant swings. A negative margin of -21.6% was reported in 2020, indicating operating losses in relation to revenues. This transitioned sharply into positive territory in 2021 at 15.91%, improving further in 2022 to 17.96%, before slightly declining to 16.18% in 2023. The margin declined sharply again in 2024 to -15.5%, echoing the return to an operating loss for that year. These swings imply considerable variability in cost control, pricing power, or other operational factors influencing profitability across these years.
Net Profit Margin
Bristol-Myers Squibb Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (8,948) | 8,025) | 6,327) | 6,994) | (9,015) | |
| Revenues | 48,300) | 45,006) | 46,159) | 46,385) | 42,518) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -18.53% | 17.83% | 13.71% | 15.08% | -21.20% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 7.59% | 8.95% | 20.39% | 20.54% | 10.08% | |
| Amgen Inc. | 12.77% | 24.96% | 26.42% | 24.25% | 29.97% | |
| Danaher Corp. | 16.33% | 19.94% | 22.91% | 21.84% | 16.36% | |
| Eli Lilly & Co. | 23.51% | 15.36% | 21.88% | 19.71% | 25.24% | |
| Gilead Sciences Inc. | 1.68% | 21.03% | 17.02% | 23.05% | 0.51% | |
| Johnson & Johnson | 15.84% | 41.28% | 18.90% | 22.26% | 17.82% | |
| Merck & Co. Inc. | 26.68% | 0.61% | 24.49% | 26.79% | 14.72% | |
| Pfizer Inc. | 12.62% | 3.56% | 31.01% | 26.76% | 22.53% | |
| Regeneron Pharmaceuticals Inc. | 31.07% | 30.14% | 35.64% | 50.25% | 41.35% | |
| Thermo Fisher Scientific Inc. | 14.77% | 13.99% | 15.47% | 19.70% | 19.79% | |
| Vertex Pharmaceuticals Inc. | -4.86% | 36.68% | 37.20% | 30.92% | 43.70% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 12.30% | 17.95% | 22.55% | 23.38% | 14.07% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 7.02% | 9.24% | 11.62% | 12.42% | 8.45% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to BMS ÷ Revenues
= 100 × -8,948 ÷ 48,300 = -18.53%
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Bristol-Myers Squibb
- The net earnings exhibit significant volatility over the five-year period. A substantial loss was recorded in 2020, amounting to -9,015 million US dollars. This was followed by a strong recovery in 2021 with net earnings of 6,994 million US dollars, maintaining positive earnings in 2022 of 6,327 million and further increasing to 8,025 million in 2023. However, in 2024, the company experienced another large loss of -8,948 million US dollars, indicating a major fluctuation in profitability.
- Revenues
- Revenues generally show a gradual upward trend, starting at 42,518 million US dollars in 2020 and increasing to 48,300 million by the end of 2024. There is an observed dip in 2023 to 45,006 million from 46,159 million in 2022, but the recovery in 2024 surpasses previous years, signaling growth in top-line performance despite fluctuations.
- Net Profit Margin
- The net profit margin reflects the trend observed in net earnings, demonstrating high volatility. The margin was deeply negative at -21.2% in 2020, turned positive to 15.08% in 2021, then slightly declined to 13.71% in 2022, before improving to 17.83% in 2023. The margin again dropped dramatically to -18.53% in 2024, mirroring the significant loss in net earnings that year and underscoring inconsistent profitability despite stable revenue levels.
Return on Equity (ROE)
Bristol-Myers Squibb Co., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (8,948) | 8,025) | 6,327) | 6,994) | (9,015) | |
| Total BMS shareholders’ equity | 16,335) | 29,430) | 31,061) | 35,946) | 37,822) | |
| Profitability Ratio | ||||||
| ROE1 | -54.78% | 27.27% | 20.37% | 19.46% | -23.84% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | 128.66% | 46.94% | 68.60% | 74.91% | 35.30% | |
| Amgen Inc. | 69.59% | 107.78% | 178.97% | 87.96% | 77.20% | |
| Danaher Corp. | 7.87% | 8.91% | 14.39% | 14.24% | 9.17% | |
| Eli Lilly & Co. | 74.62% | 48.65% | 58.64% | 62.16% | 109.79% | |
| Gilead Sciences Inc. | 2.48% | 24.81% | 21.62% | 29.55% | 0.68% | |
| Johnson & Johnson | 19.68% | 51.11% | 23.36% | 28.20% | 23.25% | |
| Merck & Co. Inc. | 36.96% | 0.97% | 31.57% | 34.17% | 27.91% | |
| Pfizer Inc. | 9.11% | 2.38% | 32.79% | 28.47% | 15.21% | |
| Regeneron Pharmaceuticals Inc. | 15.03% | 15.22% | 19.14% | 43.03% | 31.86% | |
| Thermo Fisher Scientific Inc. | 12.78% | 12.83% | 15.80% | 18.94% | 18.47% | |
| Vertex Pharmaceuticals Inc. | -3.26% | 20.59% | 23.88% | 23.19% | 31.22% | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 15.57% | 20.65% | 27.99% | 29.75% | 17.22% | |
| ROE, Industry | ||||||
| Health Care | 14.75% | 18.50% | 22.94% | 23.78% | 15.95% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net earnings (loss) attributable to BMS ÷ Total BMS shareholders’ equity
= 100 × -8,948 ÷ 16,335 = -54.78%
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Bristol-Myers Squibb (BMS)
- The net earnings of the company demonstrate significant volatility over the observed five-year period. The year ending 2020 reported a substantial loss of 9,015 million US dollars. This was followed by a strong recovery in 2021 and 2022, with positive earnings of 6,994 million and 6,327 million US dollars respectively. Earnings further increased to 8,025 million in 2023, indicating improved profitability. However, 2024 recorded another considerable loss of 8,948 million US dollars, illustrating instability or one-time impacts affecting profitability.
- Total BMS Shareholders' Equity
- The shareholders’ equity declined consistently each year from 2020 through 2024. It started at 37,822 million US dollars in 2020 and decreased steadily to 16,335 million by the end of 2024. This downward trend reflects a significant erosion of the company's equity base over this period, which may be due to accumulated losses, dividend payments, share buybacks, or write-downs impacting retained earnings or other equity components.
- Return on Equity (ROE)
- ROE shows wide fluctuations during the five years. The negative return of -23.84% in 2020 corresponds with the large net loss of that year. Positive returns resumed in 2021 and 2022, reaching 19.46% and 20.37%, respectively, reflecting the profitable performance in those periods. The ROE further improved to 27.27% in 2023, indicating enhanced efficiency in generating returns from shareholders’ equity. However, 2024 shows a sharp decline to -54.78%, consistent with the heavy net loss and significant reduction in equity, suggesting a severe erosion of value creation for shareholders that year.
- Overall Analysis
- The financial data reveals a pattern of volatility and financial stress. While the company managed to achieve profitability and improved ROE from 2021 through 2023, the losses in 2020 and 2024, along with the continual decline in shareholders’ equity, suggest challenges in maintaining stable financial performance. The sharp equity reduction and extreme negative ROE in 2024 indicate material adverse effects on the company's financial health during that period.
Return on Assets (ROA)
Bristol-Myers Squibb Co., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings (loss) attributable to BMS | (8,948) | 8,025) | 6,327) | 6,994) | (9,015) | |
| Total assets | 92,603) | 95,159) | 96,820) | 109,314) | 118,481) | |
| Profitability Ratio | ||||||
| ROA1 | -9.66% | 8.43% | 6.53% | 6.40% | -7.61% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 3.17% | 3.61% | 8.53% | 7.88% | 3.07% | |
| Amgen Inc. | 4.45% | 6.91% | 10.06% | 9.63% | 11.54% | |
| Danaher Corp. | 5.03% | 5.64% | 8.55% | 7.73% | 4.79% | |
| Eli Lilly & Co. | 13.45% | 8.19% | 12.62% | 11.44% | 13.28% | |
| Gilead Sciences Inc. | 0.81% | 9.12% | 7.27% | 9.16% | 0.18% | |
| Johnson & Johnson | 7.81% | 20.98% | 9.57% | 11.47% | 8.41% | |
| Merck & Co. Inc. | 14.62% | 0.34% | 13.30% | 12.35% | 7.72% | |
| Pfizer Inc. | 3.76% | 0.94% | 15.91% | 12.11% | 6.23% | |
| Regeneron Pharmaceuticals Inc. | 11.69% | 11.95% | 14.85% | 31.75% | 20.47% | |
| Thermo Fisher Scientific Inc. | 6.51% | 6.07% | 7.15% | 8.12% | 9.23% | |
| Vertex Pharmaceuticals Inc. | -2.38% | 15.92% | 18.30% | 17.44% | 23.07% | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.30% | 7.25% | 10.67% | 10.42% | 5.45% | |
| ROA, Industry | ||||||
| Health Care | 5.25% | 6.71% | 8.71% | 8.70% | 5.45% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net earnings (loss) attributable to BMS ÷ Total assets
= 100 × -8,948 ÷ 92,603 = -9.66%
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to BMS
- The net earnings demonstrate significant volatility over the five-year period. A substantial loss of US$ -9,015 million was recorded in 2020, followed by a notable recovery with positive earnings in the subsequent three years, peaking at US$ 8,025 million in 2023. However, 2024 shows a sudden return to a significant loss of US$ -8,948 million, indicating a sharp reversal in profitability.
- Total Assets
- Total assets exhibit a consistent declining trend from US$ 118,481 million in 2020 to US$ 92,603 million in 2024. This steady decrease suggests asset divestitures, depreciation, or other factors leading to a contraction of the company's asset base over the period.
- Return on Assets (ROA)
- The ROA mirrors the fluctuations observed in net earnings, starting with a negative -7.61% in 2020, then turning positive and gradually improving to 8.43% in 2023. This indicates a recovery and enhancement in asset efficiency during these periods. The ROA, however, drops sharply to -9.66% in 2024, paralleling the net earnings loss and further confirming a decline in profitability and asset utilization effectiveness in the most recent year.