Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 92,603 95,159 96,820 109,314 118,481
Adjustment to Total Debt
Total debt (as reported) 49,649 39,772 39,320 44,553 50,676
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities 181 162 136 169 164
Add: Non-current operating lease liabilities 1,370 1,530 1,261 874 833
Total debt (adjusted) 51,200 41,464 40,717 45,596 51,673

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, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (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
Total Asset Turnover1
Reported total asset turnover 0.52 0.47 0.48 0.42 0.36
Adjusted total asset turnover 0.52 0.47 0.48 0.42 0.36
Debt to Equity2
Reported debt to equity 3.04 1.35 1.27 1.24 1.34
Adjusted debt to equity 3.13 1.41 1.31 1.27 1.37
Return on Assets3 (ROA)
Reported ROA -9.66% 8.43% 6.53% 6.40% -7.61%
Adjusted ROA -9.66% 8.43% 6.53% 6.40% -7.61%

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 total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Bristol-Myers Squibb Co. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Bristol-Myers Squibb Co. adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as 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 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 Operating Leases
Selected Financial Data (US$ in millions)
Revenues 48,300 45,006 46,159 46,385 42,518
Adjusted total assets 92,603 95,159 96,820 109,314 118,481
Activity Ratio
Adjusted total asset turnover2 0.52 0.47 0.48 0.42 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 ÷ 92,603 = 0.52

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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Debt to Equity

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 debt 49,649 39,772 39,320 44,553 50,676
Total BMS shareholders’ equity 16,335 29,430 31,061 35,946 37,822
Solvency Ratio
Debt to equity1 3.04 1.35 1.27 1.24 1.34
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 51,200 41,464 40,717 45,596 51,673
Total BMS shareholders’ equity 16,335 29,430 31,061 35,946 37,822
Solvency Ratio
Adjusted debt to equity2 3.13 1.41 1.31 1.27 1.37

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 Debt to equity = Total debt ÷ Total BMS shareholders’ equity
= 49,649 ÷ 16,335 = 3.04

2 Adjusted debt to equity = Adjusted total debt ÷ Total BMS shareholders’ equity
= 51,200 ÷ 16,335 = 3.13

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Bristol-Myers Squibb Co. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and 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 Operating Leases
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to BMS (8,948) 8,025 6,327 6,994 (9,015)
Adjusted total assets 92,603 95,159 96,820 109,314 118,481
Profitability Ratio
Adjusted ROA2 -9.66% 8.43% 6.53% 6.40% -7.61%

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

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as 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.