Bristol-Myers Squibb's Impressive ROE: Is It Sustainable?

Bristol-Myers Squibb's ROE is 29%, higher than the average 18% in the Pharmaceuticals industry. The high ROE is partly due to high debt relative to equity, which indicates risk. The company's ROE is calculated by dividing net profit by shareholders' equity. A high ROE doesn't always indicate high profitability and investors should be cautious of high debt levels.