BMY Profit Margins
Gross, Operating & Net Margin Analysis for Bristol Myers Squibb Co
Margin Quality
Unknown
Current Profit Margins
Gross Margin
71.1%
$34.26B gross profit
Operating Margin
0.0%
$0.00 operating income
Net Profit Margin
14.6%
$7.05B net income
5-Year Margin Trends
What Margins Indicate About BMY
Business Quality
High gross margins above 50% suggest Bristol Myers Squibb Co has strong pricing power and competitive advantages that allow premium pricing.
Operational Efficiency
Stable operating margins suggest consistent execution and predictable business operations.
Profitability
Net margins in the 5-15% range are solid and typical for many profitable businesses.
Investment Implications
Expanding margins across the board suggest improving business fundamentals, which often supports stock price appreciation.
Understanding Profit Margins
Gross Margin
(Revenue - Cost of Goods Sold) / Revenue. Measures pricing power and production efficiency before operating expenses.
Operating Margin
Operating Income / Revenue. Shows profitability from core operations after all operating expenses but before interest and taxes.
Net Profit Margin
Net Income / Revenue. The bottom line - shows how much profit the company keeps from each dollar of revenue after all expenses.
Analyze BMY Profitability
Get complete financial analysis with profitability trends, ROE, ROIC, and more
Frequently Asked Questions
What is BMY's profit margin?
BMY (Bristol Myers Squibb Co) has a net profit margin of 14.6%, meaning the company keeps $0.14636676764742498 in profit for every dollar of revenue. This represents an improvement from the previous year's net margin of -18.5%.
What is BMY's gross margin?
BMY's gross margin is 71.1%. Gross margin measures the percentage of revenue remaining after subtracting the cost of goods sold. A high gross margin like this indicates strong pricing power and efficient production.
What is BMY's operating margin?
BMY has an operating margin of 0.0%. Operating margin shows profitability after operating expenses but before interest and taxes. This metric helps investors understand how efficiently Bristol Myers Squibb Co manages its operations.
Are BMY's profit margins good?
BMY's margins are considered unknown. When evaluating margins, it's important to compare against Pharmaceuticals peers, as different sectors have structurally different margin profiles.
How do profit margins affect BMY stock?
Profit margins are a key indicator of BMY's business quality and competitive position. The current margins should be evaluated alongside growth rates and return on capital to assess overall business quality. Expanding margins often lead to stock price appreciation, while contracting margins can signal competitive pressures.
What drives BMY's profit margins?
BMY's profit margins are influenced by several factors: pricing power vs competitors, operational efficiency, scale advantages, input costs (materials, labor), Pharmaceuticals-specific dynamics, and management execution. Monitoring margin trends helps identify improving or deteriorating business fundamentals.
Disclaimer: Margin analysis is based on reported financial statements and should be compared to industry peers for context. Different sectors have structurally different margin profiles. This information is for educational purposes only and should not be considered financial advice.