Bristol-Myers Squibb Co. (NYSE:BMY)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a relatively stable trend from the first available data point in March 2021 through 2025. Initially, the ratio increased from 7.22 to a peak of 7.90 in September 2022. After this peak, there was a gradual decline, with the ratio decreasing steadily to 6.60 by March 2025. This suggests that the efficiency in generating revenue from net fixed assets slightly diminished in the latter periods after a period of improvement.

Total Asset Turnover

The total asset turnover ratio exhibits a consistent upward trend over the observed periods. Starting at 0.36 in March 2021, the ratio increased almost continuously, reaching 0.52 by March 2025. This steady improvement indicates enhanced efficiency in using total assets to generate sales, reflecting better asset utilization over time.

Equity Turnover

The equity turnover ratio demonstrated a clear upward trajectory as well. Beginning at 1.12 in March 2021, it rose modestly through 2023, fluctuating slightly around the mid-1.4s to 1.5s range. Notably, from March 2024 onwards, the ratio increased sharply, surging above 2.7 and reaching a high of 2.96 in December 2024 before a slight decline to 2.74 in March 2025. This marked growth suggests a significant enhancement in the efficiency with which equity is used to generate revenue, particularly in the most recent quarters analyzed.

Revenues

The revenue figures from March 31, 2020, through March 31, 2025, exhibit notable fluctuations. Initially, revenues hovered around $10,000 to $11,000 million, with a gradual increase observed through 2021, peaking near $11,985 million by December 2021. However, from 2022 onward, revenues show some volatility with periods of both decline and recovery. Notably, revenues dipped to $11,201 million in March 2025 after reaching highs above $12,000 million in mid-2024. Overall, the data indicates a somewhat cyclical revenue pattern with no clear strong upward or downward long-term trend in this period.

Property, Plant and Equipment (PP&E)

The PP&E asset base demonstrates a generally increasing trend over the observed timeframe. Starting at $6,112 million in March 2020, there was an initial slight decline towards mid-2020, followed by steady growth. From 2022 onward, PP&E values consistently rose, reaching $7,213 million by March 2025. This indicates ongoing investment in fixed assets, suggesting capacity expansion or modernization efforts within the company over the years analyzed.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, available from December 2020, shows a declining trend throughout the period under review. Beginning at 7.22, the ratio peaked slightly to about 7.9 in late 2021 but consistently decreased thereafter to 6.6 by March 2025. This decline indicates that for each dollar invested in fixed assets, the revenue generated is reducing over time, suggesting a diminishing efficiency in asset utilization or possibly a lag in revenue growth relative to asset expansion.

Combined Insight

While the company has steadily increased its investment in property, plant, and equipment assets, revenue growth has not consistently matched this expansion, resulting in a decreasing net fixed asset turnover ratio. This pattern points to a potential efficiency concern, whereby additional fixed asset investments have not proportionally translated into higher revenues. Further in-depth analysis would be prudent to determine if these investments are strategic for future growth or if there are operational factors impacting revenue generation relative to asset base size.

Revenue Trends

Revenues exhibited an overall fluctuating pattern throughout the observed period. Starting at 10,781 million USD in the first quarter of 2020, revenues dipped to a trough around mid-2020, reaching approximately 10,129 million USD. Following this, there was a general growth trend, peaking near 12,342 million USD in the first quarter of 2025. However, interspersed within this general upward trend were periods of decline, such as notable drops in late 2022 and early 2023. This suggests a cyclicality or external influences affecting revenue generation.

Total Assets Analysis

Total assets consistently decreased from 129,285 million USD in the first quarter of 2020 to a low of approximately 92,427 million USD by the end of 2024. The contraction in total assets appears steady and significant, with few signs of reversal. Only minor fluctuations are observed after 2022, but the overall trend remains downward. This reduction in asset base may indicate divestitures, asset write-downs, or strategic shifts in capital allocation.

Total Asset Turnover Ratio

Total asset turnover, which measures efficiency in using assets to generate revenue, shows a clear and consistent improvement over the available data points. Starting from 0.36 in the third quarter of 2020, the ratio steadily increased, reaching 0.52 by the last reported quarter in 2025. This rising trend indicates enhanced effectiveness in asset utilization and possibly improved operational performance relative to the size of the asset base.

Overall Insights

Despite a decreasing asset base, the company demonstrates improved efficiency in generating revenues from its assets, as evidenced by rising asset turnover ratios. Revenues, while somewhat volatile, tend to increase in the long term, suggesting resilience and potential growth in demand or pricing power. The divergence between shrinking assets and growing revenue efficiency may reflect strategic asset optimization or a shift to less capital-intensive operations.

The analysis of the quarterly financial data reveals several notable trends in revenue, shareholders’ equity, and equity turnover over the observed periods.

Revenues

Revenues exhibit fluctuations throughout the timeline with a general pattern of moderate growth followed by intermittent declines. Initial quarters from March 2020 to June 2021 show revenues mostly increasing, peaking at 11,985 million US dollars in December 2021. Subsequently, revenues experience a downward trend during 2022 and early 2023, dipping as low as 10,966 million US dollars in the third quarter of 2023. However, from late 2023 onward, there is a recovery and slight growth, with revenues reaching 12,342 million US dollars by March 2025, notwithstanding a small drop to 11,201 million US dollars in the final quarter reported.

Total BMS shareholders’ equity

Shareholders’ equity shows a declining trend overall. Beginning with a peak of approximately 49,911 million US dollars in March 2020, equity decreases significantly by the end of 2020, dropping to 31,061 million US dollars by December 2022. There is minor recovery and stabilization between early 2023 and mid-2024, but equity values remain far below the initial levels, oscillating between approximately 16,335 to 17,389 million US dollars towards the last quarters. This indicates a considerable reduction in total equity attributable to shareholders over the five-year horizon.

Equity turnover ratio

The equity turnover ratio indicates increasing efficiency in utilizing equity to generate revenues. No data is available for the first eight quarters, but from December 2020 onward, the ratio progressively rises from around 1.12 to 2.96 by December 2024, with some minor fluctuations. This marked increase, nearly doubling the initial reported value, suggests the company is generating more revenue per unit of shareholders’ equity, potentially reflecting better asset utilization or changes in capital structure.

In summary, the data shows a company experiencing revenue volatility with a long-term upward recovery, a significant decline in shareholders’ equity over the period, and a substantial improvement in equity turnover. These factors may reflect operational adjustments, capital management strategies, or external market conditions impacting financial structure and performance.