Stock Analysis on Net

Biogen Inc. (NASDAQ:BIIB)

$22.49

This company has been moved to the archive! The financial data has not been updated since October 25, 2022.

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Biogen Inc., ROE, long-term trends, calculation

Microsoft Excel

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 analysis of the financial data over the examined period reveals several notable trends in profitability and shareholder equity for the company.

Net Income
The net income attributable to the company demonstrates significant growth in absolute terms from 2005 through 2015, beginning at approximately $161 million and peaking at around $3.55 billion in 2015. This represents a substantial increase indicating improved operational performance or favorable market conditions during this time frame. Following the 2015 peak, net income exhibits fluctuations, with some years of decline, notably in 2017 and 2021, where net income decreased to about $2.54 billion and $1.56 billion respectively, suggesting periods of reduced profitability or increased expenses.
Total Shareholders' Equity
The total shareholders' equity maintains an overall upward trend from 2005, starting at roughly $6.91 billion. Some volatility is present, especially in 2007 and 2010 when equity dropped to approximately $5.53 billion and $5.40 billion respectively. However, from 2011 onwards, there is a general increase, reaching a maximum near $13.34 billion in 2019, indicating a strengthened equity base. A decline is noticed post-2019, with equity reducing to around $10.8 billion by 2021, which may suggest share buybacks, dividend payments, or losses impacting accumulated equity.
Return on Equity (ROE)
ROE begins at a low of 2.33% in 2005, increasing steadily through the late 2000s and early 2010s, peaking impressively at 44.13% in 2019. This upward trend in ROE indicates increasing efficiency in generating profit from shareholder equity over this period. After 2019, however, ROE declines sharply, falling to 14.28% in 2021, reflecting reduced profitability or increased equity base relative to net income.

In summary, the company experienced robust growth in net income and ROE up until the mid to late 2010s, accompanied by steady growth in shareholders' equity. The peak years showed strong profitability and equity returns, highlighting operational strength. The subsequent declines in net income, equity, and ROE in recent years suggest challenges impacting profitability and efficiency, warranting further investigation into underlying causes such as market conditions, expenses, or strategic changes.


Comparison to Competitors

Biogen Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

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., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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)