Return on Assets (ROA)
since 2005
Calculation
Biogen Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Biogen Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 6.52% | = | 100 | × | 1,556,100) | ÷ | 23,877,300) |
| Dec 31, 2020 | 16.25% | = | 100 | × | 4,000,600) | ÷ | 24,618,900) |
| Dec 31, 2019 | 21.62% | = | 100 | × | 5,888,500) | ÷ | 27,234,300) |
| Dec 31, 2018 | 17.52% | = | 100 | × | 4,430,700) | ÷ | 25,288,900) |
| Dec 31, 2017 | 10.73% | = | 100 | × | 2,539,100) | ÷ | 23,652,600) |
| Dec 31, 2016 | 16.19% | = | 100 | × | 3,702,800) | ÷ | 22,876,800) |
| Dec 31, 2015 | 18.19% | = | 100 | × | 3,547,000) | ÷ | 19,504,800) |
| Dec 31, 2014 | 20.50% | = | 100 | × | 2,934,784) | ÷ | 14,316,559) |
| Dec 31, 2013 | 15.70% | = | 100 | × | 1,862,341) | ÷ | 11,863,335) |
| Dec 31, 2012 | 13.62% | = | 100 | × | 1,380,033) | ÷ | 10,130,118) |
| Dec 31, 2011 | 13.64% | = | 100 | × | 1,234,428) | ÷ | 9,049,604) |
| Dec 31, 2010 | 12.42% | = | 100 | × | 1,005,273) | ÷ | 8,092,493) |
| Dec 31, 2009 | 11.34% | = | 100 | × | 970,132) | ÷ | 8,551,854) |
| Dec 31, 2008 | 9.24% | = | 100 | × | 783,167) | ÷ | 8,478,991) |
| Dec 31, 2007 | 7.40% | = | 100 | × | 638,172) | ÷ | 8,628,815) |
| Dec 31, 2006 | 2.54% | = | 100 | × | 217,511) | ÷ | 8,552,808) |
| Dec 31, 2005 | 1.92% | = | 100 | × | 160,711) | ÷ | 8,366,947) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2021 is characterized by a prolonged period of expansion in both profitability and asset utilization, followed by a significant contraction in the final two years of the period. Return on assets (ROA) transitioned from a modest 1.92% in 2005 to a peak of 21.62% in 2019, before declining sharply to 6.52% by 2021.
- Growth and Efficiency Phase (2005–2014)
- During this interval, a consistent upward trajectory in ROA is observed, rising from 1.92% to 20.50%. This growth was driven by net income increasing at a rate that significantly outpaced the growth of the asset base. While total assets grew from approximately 8.37 billion to 14.32 billion, net income experienced a more aggressive climb from 160.7 million to 2.93 billion, indicating a substantial increase in operational efficiency and profitability per unit of asset.
- Asset Expansion and Volatility (2015–2017)
- A period of instability is evident between 2015 and 2017, where ROA fluctuated and eventually dipped to 10.73%. This trend coincided with a rapid expansion of the balance sheet, as total assets grew from 19.50 billion in 2014 to 23.65 billion in 2017. The decline in ROA during this phase was primarily caused by net income failing to scale proportionately with the asset growth, specifically dropping to 2.54 billion in 2017.
- Peak Performance (2018–2019)
- Operational efficiency reached its zenith in 2019. Net income surged to a period high of 5.89 billion, while total assets grew more moderately to 27.23 billion. This resulted in the highest recorded ROA of 21.62%, reflecting a period of maximum capital productivity.
- Contraction and Profitability Decline (2020–2021)
- A severe downturn in profitability is observed in the final two years. While total assets remained relatively stable, ending at 23.88 billion in 2021, net income plummeted from 5.89 billion in 2019 to 1.56 billion in 2021. Consequently, the ROA collapsed to 6.52%, signaling a significant reduction in the company's ability to generate earnings from its asset base.
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Comparison to Competitors
Biogen Inc., ROA, long-term trends, comparison to competitors
| Biogen Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 6.52% | 7.88% | 9.63% | 6.40% | 7.73% | 11.44% | 9.16% | 11.47% | 12.35% | 12.11% | 31.75% | 8.12% | 17.44% |
| Dec 31, 2020 | 16.25% | 3.07% | 11.54% | -7.61% | 4.79% | 13.28% | 0.18% | 8.41% | 7.72% | 6.23% | 20.47% | 9.23% | 23.07% |
| Dec 31, 2019 | 21.62% | 8.84% | 13.13% | 2.65% | 4.85% | 21.17% | 8.74% | 9.59% | 11.66% | 9.72% | 14.29% | 6.33% | 14.15% |
| Dec 31, 2018 | 17.52% | 9.58% | 12.64% | 14.06% | 5.54% | 7.36% | 8.57% | 10.00% | 7.53% | 7.00% | 20.83% | 5.22% | 33.57% |
| Dec 31, 2017 | 10.73% | 7.50% | 2.48% | 3.00% | 5.34% | -0.45% | 6.58% | 0.83% | 2.72% | 12.40% | 13.67% | 3.93% | 7.43% |
| Dec 31, 2016 | 16.19% | 9.01% | 9.95% | 13.22% | 5.64% | 7.05% | 23.70% | 11.71% | 4.11% | 4.20% | 12.84% | 4.40% | -3.87% |
| Dec 31, 2015 | 18.19% | 9.70% | 9.69% | 4.93% | 6.96% | 6.77% | 34.93% | 11.55% | 4.36% | 4.16% | 11.34% | 4.83% | -22.26% |
| Dec 31, 2014 | 20.50% | 6.44% | 7.47% | 5.94% | 7.02% | 6.43% | 34.91% | 12.45% | 12.12% | 5.40% | 8.99% | 4.42% | -31.63% |
| Dec 31, 2013 | 15.70% | 14.14% | 7.68% | 6.64% | 7.77% | 13.29% | 13.67% | 10.42% | 4.17% | 12.78% | 14.38% | 4.00% | -19.19% |
| Dec 31, 2012 | 13.62% | 19.53% | 8.00% | 5.46% | 7.26% | 11.89% | 12.20% | 8.94% | 5.81% | 7.84% | 36.06% | 4.29% | -3.88% |
| Dec 31, 2011 | 13.64% | — | 7.54% | 11.25% | 7.25% | 12.92% | 16.20% | 8.51% | 5.97% | 5.32% | -16.75% | 4.96% | 1.34% |
| Dec 31, 2010 | 12.42% | — | 10.64% | 9.98% | 8.07% | 16.35% | 25.03% | 12.96% | 0.81% | 4.23% | -9.59% | 4.85% | -43.74% |
| Dec 31, 2009 | 11.34% | — | 11.62% | 34.22% | 5.88% | 15.76% | 27.18% | 12.95% | 11.51% | 4.05% | -9.15% | 3.93% | -32.84% |
| Dec 31, 2008 | 9.24% | — | 11.51% | 17.76% | 7.53% | -7.09% | 28.65% | 15.25% | 16.54% | 7.29% | -12.34% | 4.71% | -46.90% |
| Dec 31, 2007 | 7.40% | — | 9.14% | 8.27% | 7.84% | 11.02% | 27.68% | 13.06% | 6.77% | 7.07% | -11.28% | 3.59% | -65.05% |
| Dec 31, 2006 | 2.54% | — | 8.73% | 6.20% | 8.72% | 12.13% | -29.12% | 15.67% | 9.95% | 16.84% | -17.49% | 0.79% | -22.45% |
| Dec 31, 2005 | 1.92% | — | 12.54% | 10.66% | 9.80% | 8.05% | 21.62% | 17.94% | 10.33% | 6.88% | -22.54% | 5.25% | -37.05% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Biogen Inc., ROA, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Biogen Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2021 | 6.52% | 10.42% |
| Dec 31, 2020 | 16.25% | 5.45% |
| Dec 31, 2019 | 21.62% | 9.02% |
| Dec 31, 2018 | 17.52% | 8.97% |
| Dec 31, 2017 | 10.73% | 5.28% |
| Dec 31, 2016 | 16.19% | 8.61% |
| Dec 31, 2015 | 18.19% | 8.93% |
| Dec 31, 2014 | 20.50% | 9.45% |
| Dec 31, 2013 | 15.70% | 9.46% |
| Dec 31, 2012 | 13.62% | 8.30% |
| Dec 31, 2011 | 13.64% | 7.30% |
| Dec 31, 2010 | 12.42% | 7.07% |
| Dec 31, 2009 | 11.34% | 10.02% |
| Dec 31, 2008 | 9.24% | 10.37% |
| Dec 31, 2007 | 7.40% | 8.86% |
| Dec 31, 2006 | 2.54% | 11.91% |
| Dec 31, 2005 | 1.92% | 10.42% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Biogen Inc., ROA, long-term trends, comparison to industry (health care)
| Biogen Inc. | Health Care | |
|---|---|---|
| Dec 31, 2021 | 6.52% | 9.46% |
| Dec 31, 2020 | 16.25% | 5.81% |
| Dec 31, 2019 | 21.62% | 8.32% |
| Dec 31, 2018 | 17.52% | 7.90% |
| Dec 31, 2017 | 10.73% | 5.19% |
| Dec 31, 2016 | 16.19% | 7.31% |
| Dec 31, 2015 | 18.19% | 7.71% |
| Dec 31, 2014 | 20.50% | 8.59% |
| Dec 31, 2013 | 15.70% | 8.76% |
| Dec 31, 2012 | 13.62% | 8.09% |
| Dec 31, 2011 | 13.64% | 7.36% |
| Dec 31, 2010 | 12.42% | 7.24% |
| Dec 31, 2009 | 11.34% | 9.73% |
| Dec 31, 2008 | 9.24% | 9.50% |
| Dec 31, 2007 | 7.40% | 8.88% |
| Dec 31, 2006 | 2.54% | 10.52% |
| Dec 31, 2005 | 1.92% | 9.67% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).