Biogen Inc. (NASDAQ:BIIB)

Total asset turnover

The reported total asset turnover ratio showed a relatively stable trend from 2017 to 2020, increasing slightly from 0.52 to 0.55 before declining to 0.46 in 2021. The adjusted ratio exhibited a rising trend from 0.52 in 2017 to a peak of 0.60 in 2019, followed by a decrease to 0.49 in 2021. This pattern suggests a peak in asset utilization efficiency around 2019 and a notable decline in 2021.

Current ratio

Both reported and adjusted current ratios demonstrated a downward trend from 2.34/2.35 in 2017 to approximately 1.72/1.73 in 2019, indicating a reduction in short-term liquidity. A slight recovery occurred in 2020, with the ratio increasing marginally to around 1.84-1.85 and remaining stable in 2021. Overall, the company maintained a current ratio above 1.7, reflecting reasonable current asset coverage of current liabilities.

Debt to equity ratio

The reported debt to equity ratio remained relatively constant between 0.45 and 0.47 from 2017 to 2019 but increased sharply to 0.69 in 2020 and slightly decreased to 0.67 in 2021. The adjusted ratio followed a similar pattern, rising from 0.50 in 2019 to 0.76 in 2020 and 0.75 in 2021. This increase indicates greater leverage and potentially higher financial risk from 2020 onward.

Debt to capital ratio

The debt to capital ratio was stable around 0.31-0.32 from 2017 to 2019 before increasing to approximately 0.41-0.43 in 2020 and 2021. Both reported and adjusted figures show this trend, further confirming the rising leverage observed in other metrics during this period.

Financial leverage

Reported financial leverage increased steadily from 1.88 in 2017 to a peak of 2.30 in 2020, then decreased slightly to 2.19 in 2021. The adjusted financial leverage showed a minor fluctuation but was overall consistent with reported figures, peaking in 2020 at 2.24. The increasing leverage until 2020 aligns with the elevated debt ratios, indicating amplified use of debt financing.

Net profit margin

The net profit margin exhibited strong growth from 20.69% (reported) and 22.43% (adjusted) in 2017, peaking in 2019 at about 41%, followed by a decline to 29.76% in 2020 and a sharp drop to approximately 14% in 2021. This pattern suggests a high-profit phase ending in 2019, with profitability weakening considerably in the subsequent two years.

Return on equity (ROE)

ROE increased significantly from approximately 20% in 2017 to a high of 44.13% reported and 46.81% adjusted in 2019, followed by a decline to around 37%-39% in 2020 and a substantial drop to approximately 14% in 2021. The trend mirrors the net profit margin, reflecting reduced profitability and efficiency in generating shareholder returns after 2019.

Return on assets (ROA)

ROA rose from around 11% to a peak above 25% in 2019, then decreased to approximately 16%-17% in 2020 and further dropped to about 6.5% in 2021. This decline, particularly in the latest year, combined with the increased financial leverage, points to a lower effectiveness in asset utilization toward generating net income.

The analysis of the annual financial data reveals several notable trends in the company's performance and asset management over the five-year period from 2017 to 2021.

Revenue Trends

Revenue showed an upward trajectory from 2017 through 2019, increasing from approximately $12.27 billion to $14.38 billion. In 2020, revenue experienced a slight decline to about $13.44 billion, followed by a more pronounced decrease in 2021 to approximately $10.98 billion. This indicates a peak revenue year in 2019, with subsequent years showing contraction.

Total Assets

Total assets grew steadily from $23.65 billion in 2017 to a peak of $27.23 billion in 2019. However, asset levels declined in the following years, down to $24.62 billion in 2020 and $23.88 billion in 2021. This reflects a reduction in asset base after 2019, suggesting possible divestitures or asset impairment effects.

Reported Total Asset Turnover

The reported total asset turnover ratio was relatively stable around 0.52 to 0.55 between 2017 and 2020, indicating consistent efficiency in generating revenue from total assets. However, in 2021, the ratio decreased significantly to 0.46, correlating with the revenue decline and reduction in total assets, and signaling reduced operational efficiency for that year.

Adjusted Total Assets

Adjusted total assets, which may account for certain asset revaluations or adjustments, showed a more moderated increase from 2017 ($23.61 billion) to 2019 ($24.04 billion), followed by a decline through 2021 ($22.50 billion). This trend parallels the pattern observed in reported total assets but shows a less pronounced peak and decline.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio increased notably from 0.52 in 2017 to a peak of 0.60 in 2019, indicating improved efficiency in the use of adjusted assets to generate revenue during these years. Following 2019, the ratio declined to 0.58 in 2020 and further to 0.49 in 2021. Although still better than the 2017 ratio, the 2021 decline suggests a decrease in asset utilization efficiency consistent with other metrics.

Overall, the company exhibited revenue growth and strengthening asset efficiency until 2019, followed by declines in revenue, asset base, and efficiency ratios during 2020 and 2021. This pattern suggests a shift in operational or market conditions resulting in reduced scale and effectiveness of asset utilization in the latest years analyzed.

Current Assets

The current assets exhibit fluctuations over the analyzed period. Initially, there is a slight decline from 7,873,300 thousand USD in 2017 to 7,640,900 thousand USD in 2018, followed by an increase reaching a peak at 8,381,800 thousand USD in 2019. However, 2020 marks a significant decline to 6,887,100 thousand USD, after which there is a recovery to 7,856,500 thousand USD in 2021.

Current Liabilities

Current liabilities show a different trend, with values increasing overall during the five-year span. The figure starts at 3,368,200 thousand USD in 2017, drops slightly to 3,295,200 thousand USD in 2018, then rises sharply to 4,863,800 thousand USD in 2019. This is succeeded by a decrease to 3,742,200 thousand USD in 2020, before increasing again to 4,298,200 thousand USD in 2021.

Reported Current Ratio

The reported current ratio, which is indicative of short-term liquidity, shows a decreasing trend from 2.34 in 2017 and 2.32 in 2018 to a notable drop to 1.72 in 2019. Thereafter, it partially recovers and stabilizes around 1.84 and 1.83 in 2020 and 2021 respectively, suggesting a reduced but steady level of liquidity compared to the starting years.

Adjusted Current Assets

The adjusted current assets follow a pattern closely aligned with reported current assets, with a slight upward adjustment. The values start at 7,919,300 thousand USD in 2017, decrease marginally in 2018, peak in 2019 at 8,422,300 thousand USD, fall to 6,928,700 thousand USD in 2020, and then rebound to 7,894,500 thousand USD in 2021.

Adjusted Current Liabilities

Adjusted current liabilities mirror the reported current liabilities, showing the same fluctuations with an overall rising tendency, starting from 3,367,700 thousand USD in 2017 and culminating at 4,298,200 thousand USD in 2021.

Adjusted Current Ratio

The adjusted current ratio reflects a similar trend to the reported current ratio, starting at 2.35 in 2017, slightly decreasing to 2.33 in 2018, dropping more noticeably to 1.73 in 2019, and then increasing modestly to 1.85 and 1.84 in the last two years. This suggests that after an initial decline in liquidity ratio, the company managed to stabilize its short-term financial position.

Total debt

The total debt levels remained relatively stable from 2017 through 2019, with values around 5.9 billion US dollars. However, there was a significant increase in total debt in 2020, rising to approximately 7.4 billion US dollars, followed by a slight decrease to 7.3 billion US dollars in 2021.

Total shareholders’ equity

Shareholders' equity showed a steady increase from 12.6 billion US dollars in 2017 to 13.3 billion US dollars in 2019. In 2020, however, equity dropped notably to around 10.7 billion US dollars and showed a marginal recovery in 2021 to approximately 10.9 billion US dollars.

Reported debt to equity ratio

The reported debt to equity ratio demonstrated a gradual decrease from 0.47 in 2017 to 0.45 in 2019, indicating improving leverage. This trend reversed sharply in 2020, with the ratio increasing to 0.69 and slightly decreasing to 0.67 in 2021, reflecting higher leverage driven by increased debt and reduced equity.

Adjusted total debt

Adjusted total debt mirrored the trend in total debt, remaining relatively steady around 6.4 billion US dollars from 2017 to 2019, then rising sharply to approximately 7.9 billion US dollars in 2020 before slightly declining to 7.7 billion US dollars in 2021.

Adjusted total equity

Adjusted total equity followed the pattern of total shareholders' equity, increasing from about 12.2 billion US dollars in 2017 to approximately 13.0 billion US dollars in 2019. It then decreased significantly to 10.4 billion US dollars in 2020 and declined slightly further to 10.3 billion US dollars in 2021.

Adjusted debt to equity ratio

The adjusted debt to equity ratio showed a gradual improvement from 0.53 in 2017 to 0.50 in 2019, signifying a reduction in leverage. This ratio rose substantially to 0.76 in 2020 and remained high at 0.75 in 2021, consistent with the increased debt burden and reduced equity base during these years.

Total Debt

The total debt remained relatively stable from 2017 to 2019, with values around 5.9 billion US dollars. However, a noticeable increase occurred in 2020, rising to approximately 7.4 billion, followed by a slight decrease in 2021 to about 7.3 billion. This indicates a significant rise in debt levels during 2020, which then slightly moderated the following year.

Total Capital

Total capital showed a gradual increase from 2017 through 2019, peaking near 19.3 billion US dollars. Thereafter, it declined in 2020 and remained relatively flat into 2021, hovering around 18.1 billion. This suggests a contraction in capital after 2019, coinciding with the period when debt levels increased sharply.

Reported Debt to Capital Ratio

This ratio was stable around 0.31 to 0.32 from 2017 to 2019, reflecting consistent leverage. However, in 2020, the ratio rose considerably to 0.41, indicating increased financial leverage. It slightly decreased to 0.40 in 2021 but remained elevated compared to prior years, underscoring a higher reliance on debt in the capital structure since 2020.

Adjusted Total Debt

The adjusted debt figures closely mirror the trend in reported total debt, maintaining stable levels in the early years before rising sharply in 2020. In 2021, adjusted debt declined very slightly but remained substantially higher than in the pre-2020 period. The adjustment does not change the general pattern but shows consistently higher absolute values due to the adjustment process.

Adjusted Total Capital

Adjusted capital followed a similar trend to reported capital, with increases through 2019 and declines thereafter. The adjusted figures are consistently higher than the reported ones but exhibit the same overall pattern, suggesting that the adjustment mainly affects the magnitude rather than the trend of capital levels.

Adjusted Debt to Capital Ratio

This ratio increased from 0.33 in 2019 to 0.43 in 2020 and remained at 0.43 in 2021, indicating a significant and sustained increase in leverage when using adjusted figures. The stability between 2020 and 2021 at a higher level implies that the company's financial leverage elevated considerably in that timeframe and did not revert to earlier, lower levels.

The annual financial data reflects several notable trends in the company's asset base, equity levels, and financial leverage over the five-year period examined.

Total Assets

Total assets exhibited an overall upward trend from 2017 through 2019, increasing from approximately 23.65 billion US dollars to around 27.23 billion US dollars. However, in the subsequent years of 2020 and 2021, total assets declined, falling back to roughly 23.88 billion US dollars by the end of 2021. This pattern indicates an initial phase of asset growth followed by a contraction or divestment period.

Shareholders’ Equity

Shareholders' equity showed moderate growth during the first three years, rising from about 12.61 billion US dollars in 2017 to 13.34 billion US dollars in 2019. However, a significant decrease occurred in 2020, with equity dropping to approximately 10.7 billion US dollars and remaining relatively stable in 2021 at roughly 10.9 billion US dollars. This drop corresponds with the timing of the decline in total assets, suggesting adjustments impacting the equity base.

Reported Financial Leverage

The reported financial leverage ratio increased steadily from 1.88 in 2017 to a peak of 2.3 in 2020, before decreasing slightly to 2.19 in 2021. The increase up to 2020 reflects a rising proportion of total assets financed through liabilities relative to equity, indicating a higher reliance on debt or other forms of leverage. The slight reduction in 2021 hints at some deleveraging efforts or equity adjustments.

Adjusted Total Assets

Adjusted total assets follow a similar but less pronounced trend than total assets, rising from around 23.61 billion US dollars in 2017 to approximately 24.04 billion US dollars in 2019, then decreasing to 22.5 billion US dollars by 2021. This adjustment possibly accounts for certain asset revaluations or corrections, yet the overall movement mirrors the general pattern of increasing and then decreasing asset levels.

Adjusted Total Equity

Adjusted total equity also increased modestly from 12.17 billion US dollars in 2017 to 12.96 billion US dollars in 2019. A pronounced decline appears in 2020, with adjusted equity falling to 10.39 billion US dollars and remaining near that level (10.28 billion US dollars) in 2021. This trend aligns closely with the reported equity figures, confirming consistency in the downward adjustment during the latter years.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased from 1.94 in 2017 to 1.86 in 2019, indicating a slight reduction in leverage amidst asset growth. Contrastingly, there is a sharp increase to 2.24 in 2020, followed by a minor decrease to 2.19 in 2021. This pattern suggests that, despite earlier deleveraging, the company significantly increased its leverage in 2020, which persisted into the following year.

The financial data reveals distinct trends in key profitability metrics and revenues over the five-year period.

Revenue

Revenue exhibited a generally increasing trend from 2017 through 2019, rising from approximately 12.27 billion to 14.38 billion US dollars. However, in 2020, revenue declined to about 13.44 billion, followed by a further drop in 2021 to approximately 10.98 billion. This decline in the last two years suggests challenges affecting sales or market conditions.

Net Income Attributable to Biogen Inc.

Net income grew substantially from 2.54 billion in 2017 to a peak of roughly 5.89 billion in 2019, reflecting strong profitability. Subsequently, net income decreased sharply in 2020 to around 4.00 billion and fell further in 2021 to approximately 1.56 billion, indicating reduced earnings capacity or increased costs.

Reported Net Profit Margin

The reported net profit margin increased consistently from 20.69% in 2017 to a high of 40.96% in 2019, demonstrating improved operational efficiency or favorable pricing. Following this peak, the margin contracted to 29.76% in 2020 and declined further to 14.17% in 2021, reflecting diminished profitability relative to revenue.

Adjusted Net Income

Adjusted net income mirrored the trends in reported net income, rising from approximately 2.75 billion in 2017 to 6.07 billion in 2019. It then decreased to 4.05 billion in 2020 and down to 1.49 billion in 2021, suggesting that adjustments did not significantly alter the overall downward trend in earnings.

Adjusted Net Profit Margin

The adjusted net profit margin showed an upward trajectory from 22.43% in 2017 to a peak of 42.19% in 2019. It then declined to 30.11% in 2020 and further to 13.57% in 2021, closely paralleling the pattern observed with reported margins. The consistent patterns in reported and adjusted margins imply that adjustments had a limited impact on the overall profitability trend.

In summary, the company experienced strong financial performance and increasing profitability margins from 2017 to 2019. However, there was a notable reversal starting in 2020, characterized by declining revenue, net income, and profit margins, which continued into 2021. This shift suggests emerging pressures on the business environment, operational challenges, or changing market conditions adversely affecting financial outcomes in the latter years.

The financial data reveals notable fluctuations in profitability and equity metrics over the observed period, spanning from 2017 to 2021. A detailed examination of net income, shareholders' equity, and return on equity ratios illustrates several key patterns and insights.

Net Income Trends

Net income attributable to the company exhibited growth from 2017 through 2019, reaching a peak in 2019. Specifically, net income increased from approximately 2.54 billion USD in 2017 to nearly 5.89 billion USD by 2019. However, this was followed by a decline in the subsequent years, with net income falling sharply in 2020 and further decreasing in 2021 to about 1.56 billion USD, indicating potential challenges or adverse conditions impacting profitability during this period.

Shareholders’ Equity Dynamics

Total shareholders’ equity showed a general upward trend from the end of 2017 to 2019, growing from roughly 12.61 billion USD to about 13.34 billion USD. After 2019, equity declined noticeably by 2020 to around 10.70 billion USD and remained relatively stable into 2021 at about 10.90 billion USD. This reduction may reflect factors such as capital distributions, losses, or changes in asset valuations affecting the equity base.

Return on Equity (ROE) Analysis

The reported ROE paralleled the net income patterns, increasing substantially from 20.13% in 2017 to a high of 44.13% in 2019. Subsequently, ROE reduced to 37.39% in 2020 and eroded further to 14.28% in 2021, correlating with the decline in net income and equity. Adjusted ROE, which accounts for certain non-recurring items or accounting adjustments, displayed a similar trajectory, peaking at 46.81% in 2019 before decreasing to 14.51% by 2021. The higher peak in adjusted ROE compared to reported ROE suggests that adjustments positively affected profitability metrics during peak years.

Adjusted Financial Metrics

Adjusted net income values closely follow the trend of reported net income, showing growth from approximately 2.75 billion USD in 2017 to 6.07 billion USD in 2019, followed by declines to 4.05 billion USD in 2020 and 1.49 billion USD in 2021. Adjusted total equity similarly increased through 2019 and then decreased thereafter. These adjusted figures provide a consistent picture of the company’s underlying performance, with peak profitability in 2019 and a material decline thereafter.

Overall, the company demonstrated strong financial performance and expanding equity and profitability through 2019. The subsequent downturn from 2020 onwards is marked by significant reductions in net income, equity, and ROE, suggesting a period of contraction or increased challenges. The congruence between reported and adjusted metrics confirms the robustness of these observed trends. Continuous monitoring of factors influencing these declines will be crucial to understand the company’s future performance trajectory.

The financial data reveals a pattern of growth followed by a significant decline in profitability and asset base over the five-year period.

Net Income Attributable to Biogen Inc.

The net income showed a strong upward trend from 2017 to 2019, increasing from 2,539,100 thousand US dollars to 5,888,500 thousand US dollars. However, this was followed by a substantial decrease in 2020 and 2021, with net income falling to 4,000,600 thousand and further to 1,556,100 thousand US dollars, respectively.

Total Assets

Total assets increased consistently from 23,652,600 thousand US dollars in 2017, peaking at 27,234,300 thousand US dollars in 2019. This was succeeded by a decline in 2020 and a continued decrease into 2021, resulting in total assets at 23,877,300 thousand US dollars, below the 2017 level.

Reported Return on Assets (ROA)

Reported ROA exhibited a similar trend to net income, rising from 10.73% in 2017 to a peak of 21.62% in 2019. It then declined sharply to 16.25% in 2020 and further declined to 6.52% by 2021, indicating reduced efficiency in generating income from assets in recent years.

Adjusted Net Income

The adjusted net income data parallels the reported net income, showing growth from 2,753,500 thousand US dollars in 2017 to 6,065,800 thousand US dollars in 2019, followed by a notable decrease to 4,048,800 thousand in 2020, and a further drop to 1,490,700 thousand US dollars in 2021.

Adjusted Total Assets

Adjusted total assets increased modestly from 23,611,129 thousand US dollars in 2017 to 24,042,700 thousand US dollars in 2019. Subsequently, the adjusted assets declined to 23,291,000 thousand in 2020 and decreased further to 22,500,200 thousand US dollars in 2021, showing a downward trend.

Adjusted Return on Assets (ROA)

Adjusted ROA followed a growth pattern, rising from 11.66% in 2017 to a peak of 25.23% in 2019. However, the ratio declined after 2019, dropping to 17.38% in 2020 and sharply falling to 6.63% by 2021. This decline suggests diminished asset profitability when adjustments are considered.

Overall, the data indicates that the company experienced a phase of robust financial performance and asset growth until 2019. The years 2020 and 2021 show considerable declines in profitability and asset levels, with both reported and adjusted metrics reflecting similar downturns. This downward trend in ROA and net income, despite a relatively stable asset base, points to challenges in maintaining profitability in the most recent periods examined.