Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Bristol-Myers Squibb Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. 1,279 2,745 3,017 1,879 1,245
Non-U.S. 1,364 943 1,089 598 (104)
Current 2,643 3,688 4,106 2,477 1,141
U.S. (2,185) (2,339) (2,889) (1,255) 229
Non-U.S. 96 (949) 151 (138) 754
Deferred (2,089) (3,288) (2,738) (1,393) 983
Income tax provision 554 400 1,368 1,084 2,124

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Bristol-Myers Squibb Co. current decreased from 2022 to 2023 and from 2023 to 2024.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Bristol-Myers Squibb Co. deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Income tax provision Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Bristol-Myers Squibb Co. income tax provision decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Effective Income Tax Rate (EITR)

Bristol-Myers Squibb Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
U.S. statutory Federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Nondeductible R&D charges -30.30% 0.00% 0.00% 0.00% -35.80%
GILTI, net of foreign derived intangible income deduction -6.00% 2.60% 8.20% 8.00% -10.00%
Foreign tax effect of certain operations in Ireland, Puerto Rico and Switzerland 3.60% -10.10% -5.40% -1.80% 1.30%
Non-U.S. tax ruling 0.00% -7.80% 0.00% 0.00% 0.00%
Internal transfers of intangible and other assets 0.00% 0.00% -1.20% -12.10% -12.40%
U.S. Federal valuation allowance -0.50% -2.00% 0.80% 0.10% 0.00%
U.S. Federal, state and foreign contingent tax matters 5.50% 1.70% -3.90% 1.90% -2.00%
U.S. Federal research-based credits 3.50% -2.90% -1.80% -2.00% 2.40%
Charitable contributions of inventory 0.40% -0.90% -1.20% -0.50% 0.50%
Contingent value rights 0.00% 0.00% 0.00% -1.30% 5.30%
Puerto Rico excise tax credit 0.00% 0.00% -1.90% -1.90% 2.10%
State and local taxes, net of valuation allowance 0.30% 1.10% 1.30% 0.40% -1.50%
Foreign and other -4.10% 2.00% 1.80% 1.60% -1.80%
Effective tax rate -6.60% 4.70% 17.70% 13.40% -30.90%

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).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Bristol-Myers Squibb Co. effective tax rate decreased from 2022 to 2023 and from 2023 to 2024.

Components of Deferred Tax Assets and Liabilities

Bristol-Myers Squibb Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Foreign net operating loss and other carryforwards 1,521 2,017 566 945 3,271
State net operating loss and credit carryforwards 529 349 329 304 325
U.S. Federal capital loss, net operating loss and tax credit 695 249 236 226 435
Milestone payments and license fees 999 918 1,030 887 643
Capitalized research expenditures 3,886 2,682 1,573
Other 1,738 1,883 1,284 1,390 1,677
Deferred tax assets 9,368 8,098 5,018 3,752 6,351
Valuation allowance (929) (764) (873) (1,056) (2,809)
Deferred tax assets net of valuation allowance 8,439 7,334 4,145 2,696 3,542
Acquired intangible assets (3,781) (4,052) (4,362) (4,867) (6,612)
Goodwill and other (791) (852) (605) (891) (1,176)
Deferred tax liabilities (4,572) (4,904) (4,967) (5,758) (7,788)
Deferred tax assets (liabilities), net 3,867 2,430 (822) (3,062) (4,246)

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Bristol-Myers Squibb Co. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Bristol-Myers Squibb Co. deferred tax assets net of valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets (liabilities), net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Bristol-Myers Squibb Co. deferred tax assets (liabilities), net increased from 2022 to 2023 and from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Bristol-Myers Squibb Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Deferred income taxes assets, non-current 4,236 2,768 1,344 1,439 1,161
Deferred income taxes liabilities, non-current 369 338 2,166 4,501 5,407

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).

Item Description The company
Deferred income taxes assets, non-current Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Bristol-Myers Squibb Co. deferred income taxes assets, non-current increased from 2022 to 2023 and from 2023 to 2024.
Deferred income taxes liabilities, non-current Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Bristol-Myers Squibb Co. deferred income taxes liabilities, non-current decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Bristol-Myers Squibb Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 92,603 95,159 96,820 109,314 118,481
Less: Noncurrent deferred tax assets, net 4,236 2,768 1,344 1,439 1,161
Total assets (adjusted) 88,367 92,391 95,476 107,875 117,320
Adjustment to Total Liabilities
Total liabilities (as reported) 76,215 65,674 65,702 73,308 80,599
Less: Noncurrent deferred tax liabilities, net 369 338 2,166 4,501 5,407
Total liabilities (adjusted) 75,846 65,336 63,536 68,807 75,192
Adjustment to Total BMS Shareholders’ Equity
Total BMS shareholders’ equity (as reported) 16,335 29,430 31,061 35,946 37,822
Less: Net deferred tax assets (liabilities) 3,867 2,430 (822) (3,062) (4,246)
Total BMS shareholders’ equity (adjusted) 12,468 27,000 31,883 39,008 42,068
Adjustment to Net Earnings (loss) Attributable To BMS
Net earnings (loss) attributable to BMS (as reported) (8,948) 8,025 6,327 6,994 (9,015)
Add: Deferred income tax expense (benefit) (2,089) (3,288) (2,738) (1,393) 983
Net earnings (loss) attributable to BMS (adjusted) (11,037) 4,737 3,589 5,601 (8,032)

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).


Bristol-Myers Squibb Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Bristol-Myers Squibb Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin -18.53% 17.83% 13.71% 15.08% -21.20%
Adjusted net profit margin -22.85% 10.53% 7.78% 12.08% -18.89%
Total Asset Turnover
Reported total asset turnover 0.52 0.47 0.48 0.42 0.36
Adjusted total asset turnover 0.55 0.49 0.48 0.43 0.36
Financial Leverage
Reported financial leverage 5.67 3.23 3.12 3.04 3.13
Adjusted financial leverage 7.09 3.42 2.99 2.77 2.79
Return on Equity (ROE)
Reported ROE -54.78% 27.27% 20.37% 19.46% -23.84%
Adjusted ROE -88.52% 17.54% 11.26% 14.36% -19.09%
Return on Assets (ROA)
Reported ROA -9.66% 8.43% 6.53% 6.40% -7.61%
Adjusted ROA -12.49% 5.13% 3.76% 5.19% -6.85%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Bristol-Myers Squibb Co. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Bristol-Myers Squibb Co., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to BMS (11,037) 4,737 3,589 5,601 (8,032)
Revenues 48,300 45,006 46,159 46,385 42,518
Profitability Ratio
Adjusted net profit margin2 -22.85% 10.53% 7.78% 12.08% -18.89%

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).

2024 Calculations

1 Net profit margin = 100 × Net earnings (loss) attributable to BMS ÷ Revenues
= 100 × -8,948 ÷ 48,300 = -18.53%

2 Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to BMS ÷ Revenues
= 100 × -11,037 ÷ 48,300 = -22.85%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Bristol-Myers Squibb Co. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues 48,300 45,006 46,159 46,385 42,518
Total assets 92,603 95,159 96,820 109,314 118,481
Activity Ratio
Total asset turnover1 0.52 0.47 0.48 0.42 0.36
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 48,300 45,006 46,159 46,385 42,518
Adjusted total assets 88,367 92,391 95,476 107,875 117,320
Activity Ratio
Adjusted total asset turnover2 0.55 0.49 0.48 0.43 0.36

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).

2024 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 48,300 ÷ 92,603 = 0.52

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 48,300 ÷ 88,367 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 92,603 95,159 96,820 109,314 118,481
Total BMS shareholders’ equity 16,335 29,430 31,061 35,946 37,822
Solvency Ratio
Financial leverage1 5.67 3.23 3.12 3.04 3.13
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 88,367 92,391 95,476 107,875 117,320
Adjusted total BMS shareholders’ equity 12,468 27,000 31,883 39,008 42,068
Solvency Ratio
Adjusted financial leverage2 7.09 3.42 2.99 2.77 2.79

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Total BMS shareholders’ equity
= 92,603 ÷ 16,335 = 5.67

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total BMS shareholders’ equity
= 88,367 ÷ 12,468 = 7.09

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Bristol-Myers Squibb Co. adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to BMS (11,037) 4,737 3,589 5,601 (8,032)
Adjusted total BMS shareholders’ equity 12,468 27,000 31,883 39,008 42,068
Profitability Ratio
Adjusted ROE2 -88.52% 17.54% 11.26% 14.36% -19.09%

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).

2024 Calculations

1 ROE = 100 × Net earnings (loss) attributable to BMS ÷ Total BMS shareholders’ equity
= 100 × -8,948 ÷ 16,335 = -54.78%

2 Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to BMS ÷ Adjusted total BMS shareholders’ equity
= 100 × -11,037 ÷ 12,468 = -88.52%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Bristol-Myers Squibb Co. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to BMS (11,037) 4,737 3,589 5,601 (8,032)
Adjusted total assets 88,367 92,391 95,476 107,875 117,320
Profitability Ratio
Adjusted ROA2 -12.49% 5.13% 3.76% 5.19% -6.85%

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).

2024 Calculations

1 ROA = 100 × Net earnings (loss) attributable to BMS ÷ Total assets
= 100 × -8,948 ÷ 92,603 = -9.66%

2 Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to BMS ÷ Adjusted total assets
= 100 × -11,037 ÷ 88,367 = -12.49%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.