Microsoft Excel LibreOffice Calc

Biogen Inc. (NASDAQ:BIIB)


Financial Reporting Quality: Aggregate Accruals

Advanced level


Balance-Sheet-Based Accruals Ratio

Biogen Inc., balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 27,234,300  25,288,900  23,652,600  22,876,800  19,504,800 
Less: Cash and cash equivalents 2,913,700  1,224,600  1,573,800  2,326,500  1,308,000 
Less: Marketable securities 1,562,200  2,313,400  2,115,200  2,568,600  2,120,500 
Operating assets 22,758,400  21,750,900  19,963,600  17,981,700  16,076,300 
Operating Liabilities
Total liabilities 13,895,200  12,257,300  11,054,500  10,748,200  10,129,900 
Less: Current portion of notes payable 1,495,800  —  3,200  4,700  4,800 
Less: Notes payable, excluding current portion 4,459,000  5,936,500  5,935,000  6,512,700  6,521,500 
Operating liabilities 7,940,400  6,320,800  5,116,300  4,230,800  3,603,600 
 
Net operating assets1 14,818,000  15,430,100  14,847,300  13,750,900  12,472,700 
Balance-sheet-based aggregate accruals2 (612,100) 582,800  1,096,400  1,278,200 
Financial Ratio
Balance-sheet-based accruals ratio3 -4.05% 3.85% 7.67% 9.75%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.97% -6.71% 69.42% -1.06%
AbbVie Inc. -24.37% -31.42% -7.02% 25.20%
Allergan PLC -14.93% -11.32% 1.78% -21.00%
Amgen Inc. 56.66% -9.88% -33.04% -6.85%
Bristol-Myers Squibb Co. 147.33% -3.17% -24.97% -0.82%
Eli Lilly & Co. -0.10% -10.27% -5.99% 1.26%
Gilead Sciences Inc. 19.80% -41.29% -16.94% 23.56%
Johnson & Johnson -3.85% -8.03% 31.51% 5.55%
Merck & Co. Inc. -2.90% -15.70% -0.65% -12.97%
Pfizer Inc. 19.85% -9.34% 12.36% 4.12%
Regeneron Pharmaceuticals Inc. 25.36% 20.14% 33.15% 26.37%
Vertex Pharmaceuticals Inc. 42.22% 110.08% -29.69% -17.29%
Zoetis Inc. 4.03% 29.08% -1.25% 8.66%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 17.68% -11.07% 8.50% -1.64%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 14.02% -2.34% 8.21% 1.00%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 22,758,4007,940,400 = 14,818,000

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 14,818,00015,430,100 = -612,100

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -612,100 ÷ [(14,818,000 + 15,430,100) ÷ 2] = -4.05%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Biogen Inc. deteriorated earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Biogen Inc., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income attributable to Biogen Inc. 5,888,500  4,430,700  2,539,100  3,702,800  3,547,000 
Less: Net cash flows provided by operating activities 7,078,600  6,187,700  4,551,000  4,522,400  3,716,100 
Less: Net cash flows (used in) provided by investing activities 470,500  (2,046,300) (2,963,100) (2,484,800) (4,553,600)
Cash-flow-statement-based aggregate accruals (1,660,600) 289,300  951,200  1,665,200  4,384,500 
Financial Ratio
Cash-flow-statement-based accruals ratio1 -10.98% 1.91% 6.65% 12.70%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -1.39% -5.39% 12.34% -6.46%
AbbVie Inc. -28.46% -23.85% -12.92% 16.02%
Allergan PLC -11.92% -15.00% -9.44% -10.08%
Amgen Inc. -29.37% -95.70% -22.85% 22.06%
Bristol-Myers Squibb Co. 10.75% -1.14% -28.29% 0.76%
Eli Lilly & Co. 74.20% -25.54% -11.43% 5.63%
Gilead Sciences Inc. 19.49% -73.15% 28.23% 29.15%
Johnson & Johnson -3.04% -5.08% -7.40% 4.68%
Merck & Co. Inc. -2.28% -19.26% -13.29% -5.97%
Pfizer Inc. 7.93% -10.12% 10.69% -1.06%
Regeneron Pharmaceuticals Inc. 22.48% 28.32% 19.22% 13.64%
Vertex Pharmaceuticals Inc. 35.87% 86.04% -22.78% -57.04%
Zoetis Inc. 2.95% 31.33% -4.07% 6.41%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 0.62% -16.51% -2.50% 1.94%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 2.41% -7.81% -0.36% 3.03%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -1,660,600 ÷ [(14,818,000 + 15,430,100) ÷ 2] = -10.98%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Biogen Inc. deteriorated earnings quality from 2018 to 2019.