Stock Analysis on Net
Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2024 -54.78% = -9.66% × 5.67
Dec 31, 2023 27.27% = 8.43% × 3.23
Dec 31, 2022 20.37% = 6.53% × 3.12
Dec 31, 2021 19.46% = 6.40% × 3.04
Dec 31, 2020 -23.84% = -7.61% × 3.13

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 -54.78% = -18.53% × 0.52 × 5.67
Dec 31, 2023 27.27% = 17.83% × 0.47 × 3.23
Dec 31, 2022 20.37% = 13.71% × 0.48 × 3.12
Dec 31, 2021 19.46% = 15.08% × 0.42 × 3.04
Dec 31, 2020 -23.84% = -21.20% × 0.36 × 3.13

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Bristol-Myers Squibb Co., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 -54.78% = — × — × -13.35% × 0.52 × 5.67
Dec 31, 2023 27.27% = 0.95 × 0.88 × 21.31% × 0.47 × 3.23
Dec 31, 2022 20.37% = 0.82 × 0.86 × 19.34% × 0.48 × 3.12
Dec 31, 2021 19.46% = 0.87 × 0.86 × 20.29% × 0.42 × 3.04
Dec 31, 2020 -23.84% = — × — × -12.87% × 0.36 × 3.13

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).

Two-Component Disaggregation of ROA

Bristol-Myers Squibb Co., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2024 -9.66% = -18.53% × 0.52
Dec 31, 2023 8.43% = 17.83% × 0.47
Dec 31, 2022 6.53% = 13.71% × 0.48
Dec 31, 2021 6.40% = 15.08% × 0.42
Dec 31, 2020 -7.61% = -21.20% × 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).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Bristol-Myers Squibb Co., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2024 -9.66% = — × — × -13.35% × 0.52
Dec 31, 2023 8.43% = 0.95 × 0.88 × 21.31% × 0.47
Dec 31, 2022 6.53% = 0.82 × 0.86 × 19.34% × 0.48
Dec 31, 2021 6.40% = 0.87 × 0.86 × 20.29% × 0.42
Dec 31, 2020 -7.61% = — × — × -12.87% × 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).

Disaggregation of Net Profit Margin

Bristol-Myers Squibb Co., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2024 -18.53% = — × — × -13.35%
Dec 31, 2023 17.83% = 0.95 × 0.88 × 21.31%
Dec 31, 2022 13.71% = 0.82 × 0.86 × 19.34%
Dec 31, 2021 15.08% = 0.87 × 0.86 × 20.29%
Dec 31, 2020 -21.20% = — × — × -12.87%

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).