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Bristol-Myers Squibb Co Financial Strength

: 5 (As of Mar. 2022)
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Bristol-Myers Squibb Co has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Bristol-Myers Squibb Co's Interest Coverage for the quarter that ended in Mar. 2022 was 8.19. Bristol-Myers Squibb Co's debt to revenue ratio for the quarter that ended in Mar. 2022 was 0.99. As of today, Bristol-Myers Squibb Co's Altman Z-Score is 2.52.


Competitive Comparison

For the Drug Manufacturers - General subindustry, Bristol-Myers Squibb Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Bristol-Myers Squibb Co Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, Bristol-Myers Squibb Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Bristol-Myers Squibb Co's Financial Strength falls into.



Bristol-Myers Squibb Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Bristol-Myers Squibb Co's Interest Expense for the months ended in Mar. 2022 was $-326 Mil. Its Operating Income for the months ended in Mar. 2022 was $2,669 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2022 was $38,302 Mil.

Bristol-Myers Squibb Co's Interest Coverage for the quarter that ended in Mar. 2022 is

Interest Coverage=-1*Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*2669/-326
=8.19

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Bristol-Myers Squibb Co's Debt to Revenue Ratio for the quarter that ended in Mar. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(7693 + 38302) / 46592
=0.99

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Bristol-Myers Squibb Co has a Z-score of 2.52, indicating it is in Grey Zones. This implies that Bristol-Myers Squibb Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.52 is in grey area. The implies that the company is in some kind of financial stress. If it is below 1.8, the company may faces bankrupcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Bristol-Myers Squibb Co  (NYSE:BMY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Bristol-Myers Squibb Co has the Financial Strength Rank of 5.


Bristol-Myers Squibb Co Financial Strength Related Terms

Thank you for viewing the detailed overview of Bristol-Myers Squibb Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Bristol-Myers Squibb Co Business Description

Bristol-Myers Squibb Co logo
Industry
Healthcare » Drug Manufacturers NAICS : 325412 SIC : 2834
Address
430 East 29th Street, 14th Floor, New York, NY, USA, 10016
Bristol-Myers Squibb discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, oncology, and immune disorders. A key focus for Bristol is immuno-oncology, where the firm is a leader in drug development. Unlike some of its more diversified peers, Bristol has exited several nonpharmaceutical businesses to focus on branded specialty drugs, which tend to support strong pricing power.
Executives
Vousden Karen H director 345 PARK AVENUE NEW YORK NY 10154
Samuels Theodore R. Ii director 1990 E. GRAND AVE. EL SEGUNDO CA 90245
Haller Julia A director C/O CELGENE CORPORATION 86 MORRIS AVENUE SUMMIT NJ 07901
Paliwal Dinesh C director 5454 W 110TH STREET OVERLAND PARK KS 66211
Rice Derica W director LILLY CORPORATE CENTER INDIANAPOLIS IN 46285
Emmens Matthew director C/O VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST., ATTN: GENERAL COUNSEL CAMBRIDGE MA 02139
Bertolini Robert J director C/O SCHERING PLOUGH CORP 2000 GALLOPING HILL RD KENILWORTH NJ 070333
Price Paula A director ONE CVS DRIVE WOONSOCKET RI 02895
Yale Phyllis R director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: YALE PHYLLIS R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Bonney Michael W director 65 HAYDEN AVE LEXINGTON MA 02421
Arduini Peter J director 311 ENTERPRISE DRIVE PLAINSBORO NJ 08536
Santiago Karen Murphy officer: SVP & Controller BRISTOL-MYERS SQUIBB COMPANY RT. 206 & PROVINCE LINE ROAD PRINCETON NJ 08540
Caforio Giovanni director, officer: Chairman and CEO BRISTOL-MYERS SQUIBB COMPANY ROUTE 206 & PROVINCELINE ROAD LAWRENCEVILLE NJ 08543
Eid Joseph officer: SVP,Head Glob. Medical Affairs BRISTOL-MYERS SQUIBB COMPANY 3401 PRINCETON PIKE LAWRENCEVILLE NJ 08648
Leung Sandra officer: EVP, General Counsel C/O BRISTOL MYERS SQUIBB CO 345 PARK AVE NEW YORK NY 10164

Bristol-Myers Squibb Co Headlines

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