A Financial Ratio Quarterly Trend Analysis of:
Bristol-Myers Squibb Company
Stock symbol: BMY
Listed on the New York Stock Exchange
The following report will include provide a financial quarterly trend analysis of Bristol-Myers Squibb Company (BMS) which was founded in 1989, and is based in New York City. This is a publicly traded company on the New York Stock Exchange (NYSE), and their stock symbol is BMY.
Bristol-Myers Squibb is currently “ranked 8th among 500 the largest United States”1 manufacturers. The company is “engaged in the discovery, development, licensing, manufacturing, distribution and sale of pharmaceutical products on a global basis.”2
The types of medications they produce help “fight against cancer, cardiovascular disease, diabetes, HIV/AIDS, rheumatoid arthritis and psychiatric disorders.”3 Some of their more widely recognized medications include Abilify, Plavix, Reyataz, Coumadin, and Erbitux. The company is also heavily involved with genomics and biotechnology research and development.
I choose to analyze Bristol-Myers Squibb Company for the following reasons: • As an employee of the University of Miami Miller School of Medicine, I am very interested in the national concern regarding the practice of drug companies paying medical school faculty members and private practitioners thousands of dollars to speak about and basically promote their medical products. This is recognized as a blatant conflict of interest and has even been described as corruption. As the 8th largest U.S. pharmaceutical company, Bristol-Myers Squibb participates in this practice. • With the passing of the new Healthcare Reform Bill, the healthcare industry is going to be affected tremendously and the general public is and has been very concerned with the costs of medication. • Currently, there are major advances and discoveries being made in genomics and biotechnology. These are two areas in which Bristol-Myers Squibb is expanding their operations. • I’d also like to know more about this company because I’ve considered a job opening with a local pharmaceutical company and would like to know more about this industry.
Using Market Watch, The New York Times, and Yahoo! Finance websites, I was able to find closely corresponding financial information. In addition, since one of Bristol-Myers largest competitors is GlaxoSmithKline PLC (NYSE symbol GSK.L) I used this company as an industry standard for the Financial Trend Comparison.
Section A: Computations
I was able to obtain the last four quarterly Income Statements, Balance Sheets, Cash Flow Statements and trading information for Bristol-Myers Squibb and GlaxoSmithKline which included Quarter 4 2009, Quarter 1 2010, Quarter 2 2010, and Quarter 3 2010). Although BMY’s fiscal year ends in December, there was incomplete information covering the latest quarter. Instead, I used the last four quarters in which I could gather complete data for all the financial statements this included December 2009, March 2010, June 2010, and September 2010). I found my financial data using the following internet sources:
• Yahoo! Finance
• NYT, The New York Times
• Market Watch
The two sites that I found with the most similar financial data were Market Watch and The New York Times. However, I was able to correspond much of the data from Bloomberg as well.
Using the Income Statement, Balance Sheet, and Cash Flow Statements, I was able to complete the Excel template which provided me with the following financial rations for BMY and Pfizer. The spreadsheets for both companies are attached at the back of this report.
The following table summarizes the results of the ratio computations for BMY:
BMY: KEY FINANCIAL RATIOS
|Liquidity Ratios |Q1 |Q2 |Q3...
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