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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Reported Net Income Attributable to Biogen Inc.
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The reported net income displayed a general upward trend from 2017 to 2019, increasing significantly from approximately 2.54 billion USD in 2017 to nearly 5.89 billion USD in 2019.
In 2020, the net income decreased markedly to around 4.00 billion USD, representing a decline of roughly 32% compared to 2019.
By the end of 2021, there was a further significant drop to approximately 1.56 billion USD, amounting to a decrease of about 61% from the previous year.
- Adjusted Net Income Attributable to Biogen Inc.
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The adjusted net income followed a pattern closely mirroring the reported net income, beginning at approximately 2.55 billion USD in 2017 and reaching a peak near 5.90 billion USD in 2019.
Subsequent years showed a decline similar in magnitude to the reported figures, with adjusted net income falling to about 4.00 billion USD in 2020 and further declining to approximately 1.55 billion USD in 2021.
- Insights and Trends
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Both reported and adjusted net income experienced strong growth during the initial three-year period through 2019, more than doubling over that timeframe.
The sharp declines in 2020 and 2021 indicate significant challenges or changes impacting profitability, reducing earnings by roughly two-thirds from the peak year to 2021.
The close alignment between reported and adjusted net income values suggests that adjustments made for non-recurring or non-operational items did not materially affect the overall profitability trends.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Net Profit Margin Trends
- The reported net profit margin exhibited an overall increase from 20.69% in 2017 to a peak of 40.96% in 2019, followed by a subsequent decline to 14.17% in 2021. The adjusted net profit margin closely mirrored this trend, rising from 20.76% in 2017 to 41.01% in 2019 and then decreasing to 14.14% by 2021. This indicates a significant improvement in profitability up to 2019, with a notable reduction in profit margins in the two years thereafter.
- Return on Equity (ROE) Patterns
- The reported ROE showed a strong upward trajectory from 20.13% in 2017 to 44.13% in 2019, after which it declined sharply to 14.28% by 2021. The adjusted ROE presented a similar pattern, starting at 20.2% in 2017, peaking at 44.19% in 2019, and falling to 14.25% in 2021. This suggests the company achieved high returns for shareholders through 2019, followed by a substantial drop in profitability using equity in recent years.
- Return on Assets (ROA) Developments
- The reported ROA increased from 10.73% in 2017 to 21.62% in 2019, then declined to 6.52% in 2021. The adjusted ROA followed a parallel trend, starting at 10.77% in 2017, reaching 21.65% in 2019, and decreasing to 6.5% in 2021. This pattern demonstrates improved efficiency in asset utilization culminating in 2019, subsequently declining markedly by 2021.
- Overall Observations
- Across all key profitability metrics—net profit margin, ROE, and ROA—the data exhibits a consistent trend of growth and strengthening performance from 2017 through 2019, followed by a significant deterioration from 2019 to 2021. Adjusted figures closely track the reported figures, indicating minimal impact from one-time items or adjustments. The decline post-2019 may reflect changes in operational efficiency, market conditions, or other factors influencing profitability and returns.
Biogen Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 Net profit margin = 100 × Net income attributable to Biogen Inc. ÷ Revenue
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to Biogen Inc. ÷ Revenue
= 100 × ÷ =
The financial data demonstrates notable fluctuations in both reported and adjusted net income attributable to the company over the analyzed five-year period.
- Net Income Trends
- Reported net income showed an overall upward trend from 2017 to 2019, increasing from approximately $2.54 billion to around $5.89 billion. However, this was followed by a decline in 2020, dropping to about $4.0 billion, and a further significant decrease in 2021, reaching approximately $1.56 billion. Adjusted net income mirrored these trends closely, with similar values and the same pattern of growth followed by decline.
- Profit Margin Trends
- The reported net profit margin also reflected a rising trajectory from 2017 to 2019, increasing from 20.69% to a peak of 40.96%. This was succeeded by a sharp reduction in 2020 to 29.76%, and a substantial fall in 2021 to 14.17%. Adjusted net profit margin percentages were nearly identical to the reported figures, suggesting that adjustments had minimal impact on profit margin reporting.
- Insight on Adjusted vs Reported Figures
- The very close alignment between reported and adjusted net income and profit margins throughout the period suggests limited differences arising from investment or other adjustments. This indicates consistency in financial reporting and minimal impact from non-recurring items or accounting adjustments in these specific metrics.
- Overall Observations
- The data reveals that the company experienced significant growth in profitability up to 2019, followed by a pronounced decline in both net income and profit margins in the subsequent two years. The sharp drop in 2021 is particularly notable and may warrant further investigation into the underlying causes. The close match between reported and adjusted figures also highlights stable earnings quality during the period.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 ROE = 100 × Net income attributable to Biogen Inc. ÷ Total Biogen Inc. shareholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to Biogen Inc. ÷ Total Biogen Inc. shareholders’ equity
= 100 × ÷ =
The financial data exhibits a notable fluctuation in both reported and adjusted net income attributable to the company over the five-year period. The reported net income increased significantly from approximately 2.54 billion USD in 2017 to a peak of roughly 5.89 billion USD in 2019. However, this upward trend reversed in the subsequent years, with net income declining to approximately 4.00 billion USD in 2020 and sharply falling further to about 1.56 billion USD in 2021. The adjusted net income follows a nearly identical pattern, indicating minimal impact from adjustments on the overall income figures.
In terms of return on equity (ROE), both reported and adjusted ROE demonstrate similar trends, reflecting the net income movements. ROE rose markedly from around 20.13% (reported) and 20.20% (adjusted) in 2017 to a peak near 44.13% and 44.19% respectively in 2019. This peak was followed by a decrease to about 37.39% (reported) and 37.36% (adjusted) in 2020, and a further decline to roughly 14.28% and 14.25% in 2021. The consistency between reported and adjusted ROE percentages suggests that the adjustments made did not materially affect the company's equity return performance.
The data indicates a period of robust growth and profitability until 2019, followed by a significant reduction in profitability and efficiency as measured by net income and ROE during 2020 and 2021. The sharp decline in 2021 may point to operational difficulties, market challenges, or other extraordinary factors adversely impacting financial performance.
- Net Income Trends
- The company experienced strong growth in net income from 2017 to 2019, more than doubling its reported and adjusted net income during this interval. However, the net income diminished substantially in the following two years, with 2021 showing the lowest value within the five-year scope.
- Return on Equity (ROE) Trends
- ROE mirrored the net income trend, reaching a peak in 2019 and then declining sharply thereafter. The decline in ROE suggests reduced profitability relative to shareholder equity, which may reflect lower earnings or increased equity base not proportionally matched by income growth.
- Consistency Between Reported and Adjusted Figures
- The close alignment of reported and adjusted figures in both net income and ROE throughout the period indicates that the adjustments applied were minor and did not materially alter the overall financial insights for the company.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2021 Calculations
1 ROA = 100 × Net income attributable to Biogen Inc. ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to Biogen Inc. ÷ Total assets
= 100 × ÷ =
- Net Income Trend
- There is a clear upward trajectory in both reported and adjusted net income from 2017 to 2019, with reported net income increasing from approximately 2.54 billion to nearly 5.89 billion US dollars. However, in 2020, there is a noticeable decline to around 4.00 billion US dollars, followed by a sharper decrease in 2021 to approximately 1.56 billion US dollars. This pattern suggests initial growth followed by a substantial contraction in profitability over the last two years.
- Comparison of Reported and Adjusted Net Income
- The reported and adjusted net income figures are nearly identical for each year, indicating minimal discrepancies due to adjustments. This alignment implies that the adjustments made for investment or other factors do not significantly alter the overall net income reported.
- Return on Assets (ROA) Analysis
- Reported ROA exhibits a similar trend to net income, rising from 10.73% in 2017 to a peak of 21.62% in 2019, signaling enhanced efficiency in asset utilization during this period. Following this peak, ROA declines to 16.25% in 2020 and further drops drastically to 6.52% in 2021. Adjusted ROA values closely mirror the reported figures, confirming consistent efficiency measures regardless of adjustments.
- Overall Insights
- The data reflects a company that experienced significant growth in profitability and asset efficiency leading up to 2019. Post-2019, there is a marked reduction in both net income and ROA, indicating potential challenges such as decreased earnings, operational inefficiencies, or changes in asset base. The close correspondence between reported and adjusted metrics suggests that the underlying financial performance is stable without major distortions from adjustments.