Return on Equity (ROE)
since 2005
Calculation
Biogen Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Biogen Inc.1 | ÷ | Total Biogen Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 14.28% | = | 100 | × | 1,556,100) | ÷ | 10,896,200) |
| Dec 31, 2020 | 37.39% | = | 100 | × | 4,000,600) | ÷ | 10,700,300) |
| Dec 31, 2019 | 44.13% | = | 100 | × | 5,888,500) | ÷ | 13,343,200) |
| Dec 31, 2018 | 33.98% | = | 100 | × | 4,430,700) | ÷ | 13,039,600) |
| Dec 31, 2017 | 20.13% | = | 100 | × | 2,539,100) | ÷ | 12,612,800) |
| Dec 31, 2016 | 30.50% | = | 100 | × | 3,702,800) | ÷ | 12,140,100) |
| Dec 31, 2015 | 37.84% | = | 100 | × | 3,547,000) | ÷ | 9,372,800) |
| Dec 31, 2014 | 27.15% | = | 100 | × | 2,934,784) | ÷ | 10,809,010) |
| Dec 31, 2013 | 21.60% | = | 100 | × | 1,862,341) | ÷ | 8,620,242) |
| Dec 31, 2012 | 19.82% | = | 100 | × | 1,380,033) | ÷ | 6,961,523) |
| Dec 31, 2011 | 19.21% | = | 100 | × | 1,234,428) | ÷ | 6,425,499) |
| Dec 31, 2010 | 18.63% | = | 100 | × | 1,005,273) | ÷ | 5,396,506) |
| Dec 31, 2009 | 15.59% | = | 100 | × | 970,132) | ÷ | 6,221,530) |
| Dec 31, 2008 | 13.49% | = | 100 | × | 783,167) | ÷ | 5,806,083) |
| Dec 31, 2007 | 11.53% | = | 100 | × | 638,172) | ÷ | 5,534,295) |
| Dec 31, 2006 | 3.04% | = | 100 | × | 217,511) | ÷ | 7,149,778) |
| Dec 31, 2005 | 2.33% | = | 100 | × | 160,711) | ÷ | 6,905,876) |
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
Between 2005 and 2021, the company experienced a long-term expansion in profitability relative to shareholder equity, characterized by an initial growth phase, a period of high volatility reaching a peak, and a subsequent sharp decline.
- Growth and Acceleration Phase (2005–2015)
- A consistent upward trend in Return on Equity (ROE) is observed during this period, rising from 2.33% in 2005 to 37.84% in 2015. This trajectory was driven by a substantial increase in net income, which grew from US$160.7 million to US$3.55 billion. While shareholders' equity generally increased from US$6.91 billion to US$9.37 billion over the same interval, the growth in earnings significantly outpaced the growth in equity, resulting in heightened capital efficiency.
- Volatility and Peak Performance (2016–2019)
- The period from 2016 to 2019 was marked by significant fluctuations. After a dip in ROE to 20.13% in 2017, a rapid recovery occurred, culminating in a peak ROE of 44.13% in 2019. This peak corresponds with the highest reported net income in the series, totaling US$5.89 billion, achieved even as shareholders' equity reached its maximum value of US$13.34 billion.
- Recent Contraction (2020–2021)
- A pronounced downward trend is evident in the final two years of the analysis. ROE declined from its 2019 peak to 14.28% by December 31, 2021. This contraction is primarily attributable to a sharp decrease in net income, which fell to US$1.56 billion in 2021. Although shareholders' equity also decreased to US$10.90 billion, the magnitude of the earnings decline was the primary driver of the reduced return on equity.
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Comparison to Competitors
Biogen Inc., ROE, 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 | 14.28% | 74.91% | 87.96% | 19.46% | 14.24% | 62.16% | 29.55% | 28.20% | 34.17% | 28.47% | 43.03% | 18.94% | 23.19% |
| Dec 31, 2020 | 37.39% | 35.30% | 77.20% | -23.84% | 9.17% | 109.79% | 0.68% | 23.25% | 27.91% | 15.21% | 31.86% | 18.47% | 31.22% |
| Dec 31, 2019 | 44.13% | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | 33.98% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | 20.13% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 30.50% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | 37.84% | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | 27.15% | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | 21.60% | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
| Dec 31, 2012 | 19.82% | 156.85% | 22.80% | 14.39% | 12.58% | 27.69% | 27.84% | 16.74% | 11.63% | 17.93% | 60.24% | 7.62% | -10.71% |
| Dec 31, 2011 | 19.21% | — | 19.35% | 23.25% | 12.85% | 32.11% | 41.60% | 16.94% | 11.50% | 12.18% | -45.65% | 8.84% | 3.76% |
| Dec 31, 2010 | 18.63% | — | 19.32% | 19.74% | 13.08% | 40.82% | 49.48% | 23.57% | 1.58% | 9.40% | -19.79% | 6.74% | -149.74% |
| Dec 31, 2009 | 15.59% | — | 20.32% | 71.49% | 9.90% | 45.45% | 41.40% | 24.25% | 21.85% | 9.59% | -17.10% | 5.51% | -58.57% |
| Dec 31, 2008 | 13.49% | — | 20.58% | 42.86% | 13.43% | -30.76% | 48.43% | 30.46% | 41.63% | 14.08% | -19.75% | 6.66% | -192.51% |
| Dec 31, 2007 | 11.53% | — | 17.72% | 20.50% | 15.08% | 21.61% | 46.69% | 24.41% | 18.01% | 12.53% | -22.94% | 5.25% | -144.23% |
| Dec 31, 2006 | 3.04% | — | 15.56% | 15.86% | 16.89% | 24.25% | -65.54% | 28.11% | 25.25% | 27.10% | -47.24% | 1.21% | -40.89% |
| Dec 31, 2005 | 2.33% | — | 17.96% | 26.77% | 17.67% | 18.34% | 26.88% | 27.49% | 25.85% | 12.32% | -83.72% | 7.99% | -85.05% |
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., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Biogen Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2021 | 14.28% | 29.75% |
| Dec 31, 2020 | 37.39% | 17.22% |
| Dec 31, 2019 | 44.13% | 27.68% |
| Dec 31, 2018 | 33.98% | 26.29% |
| Dec 31, 2017 | 20.13% | 14.59% |
| Dec 31, 2016 | 30.50% | 22.19% |
| Dec 31, 2015 | 37.84% | 21.44% |
| Dec 31, 2014 | 27.15% | 20.91% |
| Dec 31, 2013 | 21.60% | 20.33% |
| Dec 31, 2012 | 19.82% | 18.27% |
| Dec 31, 2011 | 19.21% | 15.52% |
| Dec 31, 2010 | 18.63% | 13.99% |
| Dec 31, 2009 | 15.59% | 20.34% |
| Dec 31, 2008 | 13.49% | 21.31% |
| Dec 31, 2007 | 11.53% | 17.07% |
| Dec 31, 2006 | 3.04% | 21.86% |
| Dec 31, 2005 | 2.33% | 19.08% |
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., ROE, long-term trends, comparison to industry (health care)
| Biogen Inc. | Health Care | |
|---|---|---|
| Dec 31, 2021 | 14.28% | 25.44% |
| Dec 31, 2020 | 37.39% | 16.70% |
| Dec 31, 2019 | 44.13% | 23.30% |
| Dec 31, 2018 | 33.98% | 21.27% |
| Dec 31, 2017 | 20.13% | 13.77% |
| Dec 31, 2016 | 30.50% | 18.53% |
| Dec 31, 2015 | 37.84% | 18.52% |
| Dec 31, 2014 | 27.15% | 19.17% |
| Dec 31, 2013 | 21.60% | 18.81% |
| Dec 31, 2012 | 19.82% | 18.20% |
| Dec 31, 2011 | 19.21% | 15.90% |
| Dec 31, 2010 | 18.63% | 14.85% |
| Dec 31, 2009 | 15.59% | 20.14% |
| Dec 31, 2008 | 13.49% | 20.29% |
| Dec 31, 2007 | 11.53% | 17.87% |
| Dec 31, 2006 | 3.04% | 20.49% |
| Dec 31, 2005 | 2.33% | 18.28% |
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).