Analysis of Geographic Areas
Biogen Inc. operates in 5 regions: U.S.; Europe; Germany; Asia; and Other.
Area Asset Turnover
Biogen Inc., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | 4.19 | 5.70 | 6.37 | 7.95 | 7.13 |
| Europe | 1.13 | 1.09 | 1.25 | 1.39 | 1.50 |
| Germany | 45.76 | 37.22 | 40.96 | — | — |
| Asia | 44.19 | 38.86 | 69.76 | 96.77 | 39.00 |
| Other | 28.88 | 56.82 | 52.46 | 284.11 | 197.95 |
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).
- U.S. Asset Turnover Trend
- The asset turnover ratio in the U.S. exhibits a clear downward trend over the five-year period. Beginning at 7.13 in 2017, it increased slightly to 7.95 in 2018, then declined steadily each year to reach 4.19 by the end of 2021. This decline may indicate decreasing efficiency or changes in asset utilization within the U.S. market.
- Europe Asset Turnover Trend
- The asset turnover ratio for Europe shows a modest but consistent decline from 1.50 in 2017 to 1.09 in 2020, followed by a slight increase to 1.13 in 2021. Overall, the ratio remains relatively low compared to other regions, suggesting a stable but less intensive use of assets over time.
- Germany Asset Turnover Trend
- Data for Germany is missing for 2017 and 2018 but reveals exceptionally high asset turnover ratios from 2019 onward: 40.96 in 2019, decreasing slightly to 37.22 in 2020, then rising again to 45.76 in 2021. These unusually high values suggest either significant asset efficiency or possibly a specific accounting or reporting aspect unique to this region.
- Asia Asset Turnover Trend
- The Asia region's asset turnover ratio increased sharply from 39.00 in 2017 to 96.77 in 2018, then decreased substantially to 69.76 in 2019, followed by a further decline to 38.86 in 2020 before rising to 44.19 in 2021. This volatility indicates significant fluctuations in asset utilization efficiency during this period.
- Other Regions Asset Turnover Trend
- The asset turnover ratio categorized as 'Other' displays high variability, starting at 197.95 in 2017 and climbing substantially to 284.11 in 2018. It then plummets to 52.46 in 2019 and slightly rises to 56.82 in 2020, before decreasing again to 28.88 in 2021. These large swings indicate considerable instability or one-off factors affecting asset turnover in these regions.
Area Asset Turnover: U.S.
Biogen Inc.; U.S.; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 5,832,300) | 8,531,100) | 9,511,500) | 9,160,900) | 8,742,200) |
| Long-lived assets | 1,390,500) | 1,496,300) | 1,493,200) | 1,152,700) | 1,226,900) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 4.19 | 5.70 | 6.37 | 7.95 | 7.13 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 5,832,300 ÷ 1,390,500 = 4.19
The financial data for the U.S. geographic area over the five-year period demonstrates several notable trends in revenues, long-lived assets, and area asset turnover ratio.
- Revenues
- Revenues increased modestly from 8,742,200 thousand US dollars in 2017 to a peak of 9,511,500 thousand in 2019. However, a decline followed with revenues dropping to 8,531,100 thousand in 2020 and then falling more sharply to 5,832,300 thousand in 2021. The revenue trend suggests initial growth in the earlier years, followed by a significant contraction in the most recent year.
- Long-lived Assets
- Long-lived assets showed a fluctuating trend. Starting at 1,226,900 thousand US dollars in 2017, the balance decreased slightly in 2018 to 1,152,700 thousand but then increased considerably to 1,493,200 thousand in 2019. The balance remained stable in 2020 at approximately 1,496,300 thousand before decreasing to 1,390,500 thousand in 2021. This indicates some reinvestment or asset acquisition during the middle years, followed by a slight reduction in 2021.
- Area Asset Turnover Ratio
- The area asset turnover ratio exhibited a steady decline throughout the period. It started at 7.13 in 2017 and increased to 7.95 in 2018, indicating improved efficiency in asset utilization initially. From 2018 onwards, the ratio fell progressively to 6.37 in 2019, 5.7 in 2020, and further down to 4.19 in 2021. This downward trend suggests decreasing effectiveness in generating revenues from fixed assets in the U.S. segment, especially marked by the substantial revenue decrease in 2021 combined with relatively stable asset levels.
Overall, while assets maintained a generally stable level with moderate fluctuations, revenues showed growth initially but decreased significantly in 2020 and 2021. The area asset turnover ratio declined consistently after 2018, signaling a reduction in operational efficiency in leveraging assets to produce revenue in the U.S. market during the latter periods.
Area Asset Turnover: Europe
Biogen Inc.; Europe; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 2,635,700) | 2,503,400) | 2,678,000) | 3,403,200) | 2,913,200) |
| Long-lived assets | 2,337,800) | 2,290,200) | 2,135,400) | 2,442,800) | 1,948,200) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.13 | 1.09 | 1.25 | 1.39 | 1.50 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 2,635,700 ÷ 2,337,800 = 1.13
The data reveals notable fluctuations and trends in the financial performance and asset utilization within the Europe geographic area over the five-year period from 2017 to 2021.
- Revenues
- Initially, revenues increased from 2,913,200 thousand US dollars in 2017 to a peak of 3,403,200 thousand US dollars in 2018. However, following this peak, there was a pronounced decline to 2,678,000 thousand in 2019, which further decreased to 2,503,400 thousand in 2020. In 2021, revenues experienced a slight recovery, rising to 2,635,700 thousand USD, yet remaining substantially below the 2018 peak.
- Long-lived assets
- The long-lived assets exhibited a generally increasing trend over the period. Starting at 1,948,200 thousand USD in 2017, these assets grew to 2,442,800 thousand in 2018, followed by a decline to 2,135,400 thousand in 2019. From 2019 onwards, long-lived assets steadily increased, reaching 2,290,200 thousand in 2020 and 2,337,800 thousand in 2021. Overall, the long-lived asset base expanded compared to the initial year.
- Area asset turnover ratio
- The asset turnover ratio, reflecting the efficiency of asset utilization to generate revenues, showed a consistent downward trend from 1.5 in 2017 to 1.13 in 2021. This indicates a gradual decline in turnover efficiency, suggesting that despite the growth in asset base, the ability to generate revenue per unit of asset diminished over the period, particularly marked by significant decreases between 2017 and 2020, with a slight improvement in 2021.
In summary, the Europe area experienced an initial growth in revenue followed by a multi-year decline and partial recovery. Concurrently, long-lived assets increased overall, but the efficiency in converting assets into revenues, as measured by the asset turnover ratio, declined steadily. This pattern points to challenges in leveraging asset investments effectively to sustain revenue growth during the observed years.
Area Asset Turnover: Germany
Biogen Inc.; Germany; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 1,162,400) | 1,161,200) | 1,126,400) | —) | —) |
| Long-lived assets | 25,400) | 31,200) | 27,500) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 45.76 | 37.22 | 40.96 | — | — |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 1,162,400 ÷ 25,400 = 45.76
- Revenues
- Revenues for the Germany geographic area show a gradual increase from 1,126,400 thousand US dollars in 2019 to 1,161,240 thousand US dollars in 2021. The growth from 2019 to 2020 is moderate, followed by a marginal increase in the next year, indicating relative stability in revenue generation over these periods.
- Long-lived assets
- Long-lived assets experienced an increase from 27,500 thousand US dollars in 2019 to 31,200 thousand US dollars in 2020. However, this was followed by a decline to 25,400 thousand US dollars in 2021. This pattern suggests some revaluation, disposal, or reduction in long-term capital assets during the latter period after an initial investment or accumulation phase.
- Area asset turnover
- The area asset turnover ratio decreased from 40.96 in 2019 to 37.22 in 2020, indicating a reduction in efficiency of asset utilization during that year. Subsequently, the ratio improved significantly to 45.76 in 2021, suggesting enhanced efficiency in utilizing long-lived assets to generate revenues in that final year.
Area Asset Turnover: Asia
Biogen Inc.; Asia; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 724,700) | 629,600) | 432,500) | 377,400) | 202,800) |
| Long-lived assets | 16,400) | 16,200) | 6,200) | 3,900) | 5,200) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 44.19 | 38.86 | 69.76 | 96.77 | 39.00 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 724,700 ÷ 16,400 = 44.19
- Revenues
- Revenues in the Asia geographic area demonstrated a consistent upward trend over the five-year period. Starting at 202,800 thousand US dollars in 2017, revenues nearly doubled by 2018 to 377,400 thousand US dollars. This positive trajectory continued, reaching 432,500 thousand US dollars in 2019, followed by a substantial increase to 629,600 thousand US dollars in 2020. The highest revenue level was observed in 2021, amounting to 724,700 thousand US dollars, indicating robust growth throughout the period.
- Long-lived assets
- The value of long-lived assets experienced fluctuations during the same period. Initially, a decline from 5,200 thousand US dollars in 2017 to 3,900 thousand US dollars in 2018 was noted. Subsequently, assets increased to 6,200 thousand US dollars in 2019 and then more than doubled in 2020, reaching 16,200 thousand US dollars. A slight increase followed in 2021 to 16,400 thousand US dollars. Overall, long-lived assets grew significantly, especially from 2019 onward, indicating increased investment or capital expenditures in the area.
- Area asset turnover
- The area asset turnover ratio, which measures revenue generated per unit of assets, showed considerable variability. An initial sharp increase occurred from 39 in 2017 to a peak of 96.77 in 2018. In 2019, the ratio decreased to 69.76 but remained relatively high. The following years saw a marked decline to 38.86 in 2020 and a moderate recovery to 44.19 in 2021. This trend suggests that, while asset utilization was highly efficient in 2018 and 2019, efficiency decreased notably as asset levels grew substantially in 2020 and 2021, possibly due to the lag between asset investments and revenue generation.
Area Asset Turnover: Other
Biogen Inc.; Other; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | 626,600) | 619,300) | 629,500) | 511,400) | 415,700) |
| Long-lived assets | 21,700) | 10,900) | 12,000) | 1,800) | 2,100) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 28.88 | 56.82 | 52.46 | 284.11 | 197.95 |
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).
1 2021 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 626,600 ÷ 21,700 = 28.88
- Revenues
- Revenues exhibited a generally increasing trend over the five-year period, rising from 415,700 thousand US dollars in 2017 to 626,600 thousand US dollars in 2021. There was a consistent year-over-year growth in revenues from 2017 through 2019, increasing substantially by approximately 51% over these two years. However, revenues plateaued somewhat during 2020 and 2021, with a slight decrease in 2020 followed by a modest recovery in 2021.
- Long-lived assets
- The value of long-lived assets showed notable fluctuations during the period. Starting at 2,100 thousand US dollars in 2017, the assets slightly decreased in 2018 but then increased significantly in 2019 to 12,000 thousand US dollars. There was a small decline in 2020 to 10,900 thousand US dollars, followed by a substantial increase in 2021, reaching 21,700 thousand US dollars, the highest point in the period observed. This pattern suggests periods of considerable investment or acquisition of long-lived assets, especially in 2019 and 2021.
- Area asset turnover ratio
- The area asset turnover ratio, which measures the efficiency of asset use in generating revenues, exhibited a marked decline over the years. Initially very high at 197.95 in 2017 and increasing to 284.11 in 2018, the ratio then dropped sharply to 52.46 in 2019 and remained relatively stable but low between 2020 (56.82) and 2021 (28.88). This significant decrease in asset turnover suggests that despite the increase in long-lived assets, the efficiency with which these assets generated revenues decreased substantially, especially after 2018.
- Overall insights
- The data indicates that while revenues increased and then stabilized, there was a considerable expansion in long-lived assets from 2018 onwards. However, the sharp decrease in area asset turnover ratio suggests that the additional assets were not as efficiently utilized in generating revenues as in previous years. This could reflect changes in asset mix, investment in new projects not yet fully operational, or other operational factors impacting asset utilization.
Revenues
Biogen Inc., revenues by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | 5,832,300) | 8,531,100) | 9,511,500) | 9,160,900) | 8,742,200) |
| Europe | 2,635,700) | 2,503,400) | 2,678,000) | 3,403,200) | 2,913,200) |
| Germany | 1,162,400) | 1,161,200) | 1,126,400) | —) | —) |
| Asia | 724,700) | 629,600) | 432,500) | 377,400) | 202,800) |
| Other | 626,600) | 619,300) | 629,500) | 511,400) | 415,700) |
| Total | 10,981,700) | 13,444,600) | 14,377,900) | 13,452,900) | 12,273,900) |
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).
- U.S. Revenue Trend
- The revenues generated in the U.S. showed a moderate increase from 2017 to 2019, rising from approximately $8.74 billion to $9.51 billion. However, there was a notable decline in 2020, with revenues falling to about $8.53 billion, followed by a more pronounced drop in 2021 to around $5.83 billion. This indicates a significant downturn in the most recent year under review.
- Europe Revenue Trend
- Revenue in Europe initially increased from approximately $2.91 billion in 2017 to $3.40 billion in 2018. It then declined in 2019 and 2020 to about $2.68 billion and $2.50 billion, respectively. A slight recovery was observed in 2021, reaching $2.64 billion, but this remained well below the 2018 peak.
- Germany Specific Data
- Detailed revenue data for Germany is only available from 2019 onwards, with figures showing stable revenues of around $1.13 billion in 2019, increasing slightly to $1.16 billion in 2020 and maintaining that level in 2021. This suggests steady but limited growth in this specific market within Europe.
- Asia Revenue Trend
- Asia exhibited consistent growth throughout the entire period, with revenues increasing from $203 million in 2017 to $725 million in 2021. This represents more than a threefold rise over five years, indicating a significant expansion and growing importance of the Asian market.
- Other Geographic Areas
- Revenues categorized under "Other" showed a steady upward trajectory from $416 million in 2017 to $627 million in 2021. While the growth rate is modest compared to Asia, it reflects a positive trend across these diverse markets.
- Total Revenue Analysis
- Total revenues increased from $12.27 billion in 2017 to a peak of $14.38 billion in 2019, reflecting overall growth during the initial years. In 2020, total revenue decreased to $13.44 billion and further dropped significantly in 2021 to approximately $10.98 billion. This decline is mainly attributable to the sharp reduction in U.S. revenues, partly offset by gains in Asia and other regions.
- Summary of Key Insights
- The geographic revenue data reveals a shifting landscape over the five-year period. The U.S. market, while initially strong, experienced substantial declines starting in 2020, considerably impacting total revenues. European markets faced volatility, with some recovery in 2021 but remaining below previous highs. Germany’s consistent but modest growth contrasts with the robust expansion seen in Asia, which emerges as a critical growth region. Revenues in other areas also contributed positively but less dramatically. Overall, despite growth in several regions, the significant downturn in the U.S. resulted in a notable contraction of total revenue by 2021.
Long-lived assets
Biogen Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| U.S. | 1,390,500) | 1,496,300) | 1,493,200) | 1,152,700) | 1,226,900) |
| Europe | 2,337,800) | 2,290,200) | 2,135,400) | 2,442,800) | 1,948,200) |
| Germany | 25,400) | 31,200) | 27,500) | —) | —) |
| Asia | 16,400) | 16,200) | 6,200) | 3,900) | 5,200) |
| Other | 21,700) | 10,900) | 12,000) | 1,800) | 2,100) |
| Total | 3,791,800) | 3,844,800) | 3,674,300) | 3,601,200) | 3,182,400) |
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).
- U.S. Long-lived Assets
- The value of long-lived assets in the U.S. showed fluctuations over the five-year period. Beginning at approximately 1,226,900 thousand US dollars in 2017, the amount decreased in 2018 to 1,152,700 thousand US dollars. It then increased significantly in 2019 to 1,493,200 thousand US dollars and slightly rose again in 2020 to 1,496,300 thousand US dollars, before declining to 1,390,500 thousand US dollars in 2021. Overall, the assets experienced variability with a peak in 2020, followed by a moderate decline in the final year.
- Europe Long-lived Assets
- Assets in Europe demonstrated a generally upward trend, starting at 1,948,200 thousand US dollars in 2017 and increasing to a peak of 2,448,200 thousand US dollars in 2018. Although there was a decline in 2019 to 2,135,400 thousand US dollars, the values recovered in subsequent years, rising to 2,290,200 thousand US dollars in 2020 and further to 2,337,800 thousand US dollars in 2021. This indicates overall growth despite some volatility.
- Germany Long-lived Assets
- Data for Germany starts in 2019 with 27,500 thousand US dollars. The assets increased to 31,200 thousand US dollars in 2020, before reducing to 25,400 thousand US dollars in 2021. This suggests a small asset base with slight growth initially, followed by a decrease in the most recent year.
- Asia Long-lived Assets
- Long-lived assets in Asia began at 5,200 thousand US dollars in 2017 and declined to 3,900 thousand US dollars in 2018. Thereafter, they witnessed steady growth, reaching 6,200 thousand US dollars in 2019, 16,200 thousand US dollars in 2020, and slightly increasing to 16,400 thousand US dollars in 2021. The asset values indicate recovery and growth from 2018 onwards, with a notable increase from 2019 to 2020.
- Other Regions Long-lived Assets
- Assets classified under Other regions showed considerable growth over the years. Starting from 2,100 thousand US dollars in 2017, the value slightly decreased to 1,800 thousand US dollars in 2018, then sharply increased to 12,000 thousand US dollars in 2019. A minor decline was observed in 2020 with assets valued at 10,900 thousand US dollars, followed by a significant increase to 21,700 thousand US dollars in 2021. This highlights a rapidly growing asset base in this category in recent years.
- Total Long-lived Assets
- The total long-lived assets demonstrated an overall increasing trend from 2017 through 2020, rising from 3,182,400 thousand US dollars in 2017 to a peak of 3,844,800 thousand US dollars in 2020. However, in 2021, there was a marginal decrease to 3,791,800 thousand US dollars. This suggests expanding asset investments over the five-year period with a slight downturn in the most recent year.