Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Biogen Inc., solvency ratios
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).
- Debt to Equity and Related Ratios
- Over the observed period, the debt to equity ratio remained relatively stable from 2017 to 2019, with a slight decrease from 0.47 to 0.45, followed by a notable increase in 2020 to 0.69 and a marginal decrease to 0.67 in 2021. When including operating lease liabilities, the ratio showed a similar trend but slightly higher values, indicating that lease obligations have a measurable impact on the leverage structure.
- Debt to Capital Ratios
- The debt to capital ratio also exhibited stability between 2017 and 2019, hovering around 0.31. This ratio increased significantly in 2020 to 0.41, then slightly declined to 0.40 in 2021. Including operating lease liabilities slightly elevated these ratios, reinforcing the importance of operating leases in overall capital structure considerations during this period.
- Debt to Assets Ratios
- Debt to assets followed a consistent pattern with modest declines from 0.25 in 2017 to 0.22 in 2019. However, a rise to 0.30 occurred in 2020, which then remained stable through 2021. The inclusion of operating lease liabilities again resulted in somewhat higher ratios, indicating additional obligations affecting asset financing.
- Financial Leverage
- Financial leverage exhibited a gradual increase from 1.88 in 2017 to a peak of 2.30 in 2020, followed by a slight reduction to 2.19 in 2021. This upward trend suggests growing reliance on debt relative to equity in the longer term.
- Interest Coverage Ratios
- The interest coverage ratio showed a strengthening position through 2019, rising from 21.45 to 38.60, indicative of improved ability to meet interest obligations. However, this trend reversed sharply in 2020 and 2021, declining to 23.71 and then 8.02 respectively, signaling reduced earnings capacity relative to interest expenses.
- Fixed Charge Coverage
- Fixed charge coverage demonstrated a corresponding pattern to interest coverage, increasing steadily from 17.23 in 2017 to 26.28 in 2019, followed by a substantial decrease to 16.75 in 2020 and further down to 6.04 in 2021. This decline points to a weakened capacity to cover all fixed financing costs, including lease payments and interest.
Debt Ratios
Coverage Ratios
Debt to Equity
Biogen Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Total Biogen Inc. shareholders’ equity | 10,896,200) | 10,700,300) | 13,343,200) | 13,039,600) | 12,612,800) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.67 | 0.69 | 0.45 | 0.46 | 0.47 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 4.98 | 6.58 | — | — | — | |
| Amgen Inc. | 4.97 | 3.51 | — | — | — | |
| Bristol-Myers Squibb Co. | 1.24 | 1.34 | — | — | — | |
| Danaher Corp. | 0.49 | 0.53 | — | — | — | |
| Eli Lilly & Co. | 1.88 | 2.94 | — | — | — | |
| Gilead Sciences Inc. | 1.27 | 1.73 | — | — | — | |
| Johnson & Johnson | 0.46 | 0.56 | — | — | — | |
| Merck & Co. Inc. | 0.87 | 1.26 | — | — | — | |
| Pfizer Inc. | 0.50 | 0.63 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.14 | 0.24 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.85 | 0.63 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.06 | 0.07 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.93 | 1.12 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.79 | 0.92 | — | — | — | |
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
Debt to equity = Total debt ÷ Total Biogen Inc. shareholders’ equity
= 7,273,100 ÷ 10,896,200 = 0.67
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a relatively stable phase from 2017 through 2019, with values around 5.9 billion US dollars. However, in 2020, there was a significant increase, reaching approximately 7.4 billion US dollars. This elevated debt level slightly decreased in 2021 to roughly 7.3 billion US dollars, but still remained substantially higher than the levels observed before 2020.
- Total Shareholders’ Equity
- Shareholders’ equity showed a gradual upward trend from 2017 to 2019, increasing from about 12.6 billion to 13.3 billion US dollars. However, in 2020, equity contracted sharply to approximately 10.7 billion US dollars. A modest recovery was observed in 2021, with equity rising to around 10.9 billion US dollars, yet still below the earlier peak.
- Debt to Equity Ratio
- The debt to equity ratio remained fairly stable, decreasing slightly from 0.47 in 2017 to 0.45 in 2019, indicating a balanced capital structure. A notable shift occurred in 2020, with the ratio increasing significantly to 0.69, reflecting the rise in debt and the decline in equity. In 2021, this ratio marginally improved to 0.67, but overall indicates higher leverage than in the preceding years.
- Overall Analysis
- The financial data indicate a period of relative stability in debt and equity from 2017 to 2019, followed by considerable changes starting in 2020. The marked increase in total debt combined with a decrease in shareholders’ equity led to a heightened debt to equity ratio, suggesting increased financial leverage and possibly greater risk. The partial reversal of these trends in 2021 points to some stabilization, though leverage remains elevated compared to prior years. These patterns may warrant attention to the company’s debt management and capital structure going forward.
Debt to Equity (including Operating Lease Liability)
Biogen Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Current operating lease liabilities (included in Accrued expenses and other) | 89,100) | 83,200) | 73,600) | —) | —) | |
| Long-term operating lease liabilities | 330,400) | 402,000) | 412,700) | —) | —) | |
| Total debt (including operating lease liability) | 7,692,600) | 7,911,400) | 6,441,100) | 5,936,500) | 5,938,200) | |
| Total Biogen Inc. shareholders’ equity | 10,896,200) | 10,700,300) | 13,343,200) | 13,039,600) | 12,612,800) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.71 | 0.74 | 0.48 | 0.46 | 0.47 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 5.03 | 6.66 | — | — | — | |
| Amgen Inc. | 5.07 | 3.55 | — | — | — | |
| Bristol-Myers Squibb Co. | 1.27 | 1.37 | — | — | — | |
| Danaher Corp. | 0.52 | 0.56 | — | — | — | |
| Eli Lilly & Co. | 1.96 | 3.06 | — | — | — | |
| Gilead Sciences Inc. | 1.30 | 1.76 | — | — | — | |
| Johnson & Johnson | 0.47 | 0.57 | — | — | — | |
| Merck & Co. Inc. | 0.91 | 1.32 | — | — | — | |
| Pfizer Inc. | 0.54 | 0.65 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.15 | 0.25 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.89 | 0.65 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.11 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.96 | 1.15 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.85 | 0.98 | — | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Biogen Inc. shareholders’ equity
= 7,692,600 ÷ 10,896,200 = 0.71
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt exhibited a generally increasing trend from 2017 through 2020, rising from approximately 5.94 billion US dollars to nearly 7.91 billion US dollars. In 2021, there was a slight decline to about 7.69 billion US dollars, indicating a minor reduction in the company's total liabilities after a four-year increase.
- Total Shareholders’ Equity
- Shareholders’ equity showed growth from around 12.61 billion US dollars in 2017 to approximately 13.34 billion US dollars in 2019. However, a notable decrease occurred in 2020, when equity declined to roughly 10.70 billion US dollars, followed by a marginal recovery in 2021 to about 10.90 billion US dollars. This decline suggests a period of reduced net asset value or distribution of earnings.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt-to-equity ratio remained relatively stable near 0.46-0.48 between 2017 and 2019, implying balanced leverage. A significant increase occurred in 2020 to 0.74, reflecting higher leverage due to rising debt and decreased equity. In 2021, a slight improvement was observed as the ratio decreased to 0.71, but leverage still remained elevated compared to the earlier years.
Debt to Capital
Biogen Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Total Biogen Inc. shareholders’ equity | 10,896,200) | 10,700,300) | 13,343,200) | 13,039,600) | 12,612,800) | |
| Total capital | 18,169,300) | 18,126,500) | 19,298,000) | 18,976,100) | 18,551,000) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.40 | 0.41 | 0.31 | 0.31 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.83 | 0.87 | — | — | — | |
| Amgen Inc. | 0.83 | 0.78 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.55 | 0.57 | — | — | — | |
| Danaher Corp. | 0.33 | 0.35 | — | — | — | |
| Eli Lilly & Co. | 0.65 | 0.75 | — | — | — | |
| Gilead Sciences Inc. | 0.56 | 0.63 | — | — | — | |
| Johnson & Johnson | 0.31 | 0.36 | — | — | — | |
| Merck & Co. Inc. | 0.46 | 0.56 | — | — | — | |
| Pfizer Inc. | 0.33 | 0.39 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.13 | 0.20 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.46 | 0.39 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.05 | 0.06 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.48 | 0.53 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.44 | 0.48 | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 7,273,100 ÷ 18,169,300 = 0.40
2 Click competitor name to see calculations.
- Total Debt
- The total debt remained relatively stable from 2017 to 2019, with values slightly fluctuating around 5,938,000 to 5,955,000 thousand USD. However, there was a noticeable increase in 2020, reaching 7,426,200 thousand USD, representing a significant rise. In 2021, the total debt slightly decreased to 7,273,100 thousand USD but still remained considerably higher than the levels observed from 2017 to 2019.
- Total Capital
- Total capital showed an overall stable trend with minor fluctuations over the five-year period. It increased gradually from 18,551,000 thousand USD in 2017 to a peak of 19,298,000 thousand USD in 2019. Subsequently, the total capital declined in 2020 to 18,126,500 thousand USD and showed a marginal increase in 2021 to 18,169,300 thousand USD.
- Debt to Capital Ratio
- The debt to capital ratio displayed stability around 0.31 to 0.32 between 2017 and 2019, indicating a consistent capital structure with roughly one-third of capital financed by debt. In 2020, this ratio increased sharply to 0.41, reflecting the rise in total debt combined with a decline in total capital. In 2021, the ratio slightly decreased to 0.40 but remained elevated compared to the earlier years, signaling a higher leverage position relative to the initial period.
Debt to Capital (including Operating Lease Liability)
Biogen Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Current operating lease liabilities (included in Accrued expenses and other) | 89,100) | 83,200) | 73,600) | —) | —) | |
| Long-term operating lease liabilities | 330,400) | 402,000) | 412,700) | —) | —) | |
| Total debt (including operating lease liability) | 7,692,600) | 7,911,400) | 6,441,100) | 5,936,500) | 5,938,200) | |
| Total Biogen Inc. shareholders’ equity | 10,896,200) | 10,700,300) | 13,343,200) | 13,039,600) | 12,612,800) | |
| Total capital (including operating lease liability) | 18,588,800) | 18,611,700) | 19,784,300) | 18,976,100) | 18,551,000) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.41 | 0.43 | 0.33 | 0.31 | 0.32 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.83 | 0.87 | — | — | — | |
| Amgen Inc. | 0.84 | 0.78 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.56 | 0.58 | — | — | — | |
| Danaher Corp. | 0.34 | 0.36 | — | — | — | |
| Eli Lilly & Co. | 0.66 | 0.75 | — | — | — | |
| Gilead Sciences Inc. | 0.56 | 0.64 | — | — | — | |
| Johnson & Johnson | 0.32 | 0.36 | — | — | — | |
| Merck & Co. Inc. | 0.48 | 0.57 | — | — | — | |
| Pfizer Inc. | 0.35 | 0.39 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.13 | 0.20 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.47 | 0.40 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.09 | 0.10 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.49 | 0.54 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.46 | 0.50 | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 7,692,600 ÷ 18,588,800 = 0.41
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt increased moderately from approximately 5.94 billion US dollars at the end of 2017 to about 6.44 billion in 2019. A more pronounced rise occurred in 2020, reaching approximately 7.91 billion, followed by a slight decrease in 2021 to around 7.69 billion. This pattern indicates a notable increase in leverage during 2020, with a marginal reduction thereafter.
- Total capital (including operating lease liability)
- Total capital showed an overall upward trend from about 18.55 billion US dollars at the end of 2017 to a peak of approximately 19.78 billion in 2019. Subsequently, it declined to about 18.61 billion in 2020 and remained relatively stable at approximately 18.59 billion in 2021. This suggests that after initial growth, the company’s capital base contracted slightly in the last two years observed.
- Debt to capital (including operating lease liability)
- The debt to capital ratio was relatively stable at around 0.31 to 0.33 from 2017 through 2019. It rose significantly to 0.43 in 2020, reflecting increased reliance on debt financing relative to total capital. In 2021, this ratio decreased slightly to 0.41 but remained elevated compared to previous years, indicating continued higher leverage compared to the earlier period.
Debt to Assets
Biogen Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Total assets | 23,877,300) | 24,618,900) | 27,234,300) | 25,288,900) | 23,652,600) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.30 | 0.30 | 0.22 | 0.23 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.52 | 0.57 | — | — | — | |
| Amgen Inc. | 0.54 | 0.52 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.41 | 0.43 | — | — | — | |
| Danaher Corp. | 0.27 | 0.28 | — | — | — | |
| Eli Lilly & Co. | 0.35 | 0.36 | — | — | — | |
| Gilead Sciences Inc. | 0.39 | 0.46 | — | — | — | |
| Johnson & Johnson | 0.19 | 0.20 | — | — | — | |
| Merck & Co. Inc. | 0.31 | 0.35 | — | — | — | |
| Pfizer Inc. | 0.21 | 0.26 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.16 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.31 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.04 | 0.05 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.32 | 0.36 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.31 | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 7,273,100 ÷ 23,877,300 = 0.30
2 Click competitor name to see calculations.
- Total Debt
- Over the observed period, total debt remained relatively stable from 2017 to 2019, fluctuating slightly around the 5.9 million US dollars mark. A significant increase occurred in 2020, where total debt rose sharply to approximately 7.4 million US dollars, followed by a slight decline in 2021 to about 7.3 million US dollars. This suggests a notable increase in leverage during 2020, possibly related to external financial strategies or market conditions.
- Total Assets
- Total assets showed a consistent upward trend from 2017 through 2019, growing from approximately 23.7 million US dollars to over 27.2 million US dollars. However, this growth was reversed starting in 2020, with assets decreasing noticeably to around 24.6 million US dollars and further declining to approximately 23.9 million US dollars in 2021. This drop in assets may indicate asset sales, write-downs, or changes in asset valuation impacting the company's balance sheet during these years.
- Debt to Assets Ratio
- The debt to assets ratio declined steadily from 0.25 in 2017 to 0.22 in 2019, reflecting an overall decrease in leverage relative to assets during this period. This trend reversed sharply in 2020 with the ratio increasing to 0.3 and maintaining that level into 2021. The increase in the debt to assets ratio is consistent with the simultaneous rise in total debt and decline in total assets, indicating heightened leverage risk and a more aggressive debt position relative to the company’s asset base in recent years.
Debt to Assets (including Operating Lease Liability)
Biogen Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current portion of notes payable | 999,100) | —) | 1,495,800) | —) | 3,200) | |
| Notes payable, excluding current portion | 6,274,000) | 7,426,200) | 4,459,000) | 5,936,500) | 5,935,000) | |
| Total debt | 7,273,100) | 7,426,200) | 5,954,800) | 5,936,500) | 5,938,200) | |
| Current operating lease liabilities (included in Accrued expenses and other) | 89,100) | 83,200) | 73,600) | —) | —) | |
| Long-term operating lease liabilities | 330,400) | 402,000) | 412,700) | —) | —) | |
| Total debt (including operating lease liability) | 7,692,600) | 7,911,400) | 6,441,100) | 5,936,500) | 5,938,200) | |
| Total assets | 23,877,300) | 24,618,900) | 27,234,300) | 25,288,900) | 23,652,600) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.32 | 0.32 | 0.24 | 0.23 | 0.25 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.53 | 0.58 | — | — | — | |
| Amgen Inc. | 0.56 | 0.53 | — | — | — | |
| Bristol-Myers Squibb Co. | 0.42 | 0.44 | — | — | — | |
| Danaher Corp. | 0.28 | 0.29 | — | — | — | |
| Eli Lilly & Co. | 0.36 | 0.37 | — | — | — | |
| Gilead Sciences Inc. | 0.40 | 0.47 | — | — | — | |
| Johnson & Johnson | 0.19 | 0.21 | — | — | — | |
| Merck & Co. Inc. | 0.33 | 0.37 | — | — | — | |
| Pfizer Inc. | 0.23 | 0.27 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.16 | — | — | — | |
| Thermo Fisher Scientific Inc. | 0.38 | 0.33 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 0.07 | 0.08 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.34 | 0.37 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.34 | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 7,692,600 ÷ 23,877,300 = 0.32
2 Click competitor name to see calculations.
- Total Debt (including Operating Lease Liability)
- Over the five-year period, total debt exhibited an overall upward trend with some fluctuations. The debt level remained almost unchanged between 2017 and 2018, around 5.9 billion USD, followed by an increase in 2019 to approximately 6.44 billion USD. A more marked rise occurred in 2020, reaching about 7.91 billion USD. In 2021, a slight decrease was observed, with total debt lowering to approximately 7.69 billion USD.
- Total Assets
- Total assets demonstrated an initially increasing trend from 2017 through 2019. Starting at roughly 23.65 billion USD in 2017, assets grew to nearly 25.29 billion USD in 2018 and peaked at around 27.23 billion USD in 2019. However, the subsequent two years showed a decline, with total assets dropping to about 24.62 billion USD in 2020 and further decreasing to approximately 23.88 billion USD in 2021.
- Debt to Assets Ratio (including Operating Lease Liability)
- The debt to assets ratio decreased from 0.25 in 2017 to 0.23 in 2018, indicating a slight improvement in leverage relative to assets. In 2019, the ratio increased modestly to 0.24. A marked increase occurred in 2020, with the ratio rising to 0.32, which was maintained in 2021. This suggests a higher leverage position in the last two years analyzed, despite the decrease in total debt in 2021, primarily driven by the decline in total assets over the same period.
- Summary
- The company's financial structure shows a rising debt load through 2020, with a slight reduction in debt in 2021 but accompanied by a decline in total assets. This combination resulted in a significant increase in the debt to assets ratio in 2020 and 2021 compared to prior years, indicating increased financial leverage and potentially higher risk exposure. The reduction in assets over the last two years could be a point of concern, especially given the elevated leverage. Monitoring these trends will be crucial to assess the company’s financial stability going forward.
Financial Leverage
Biogen Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 23,877,300) | 24,618,900) | 27,234,300) | 25,288,900) | 23,652,600) | |
| Total Biogen Inc. shareholders’ equity | 10,896,200) | 10,700,300) | 13,343,200) | 13,039,600) | 12,612,800) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.19 | 2.30 | 2.04 | 1.94 | 1.88 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 9.51 | 11.51 | — | — | — | |
| Amgen Inc. | 9.13 | 6.69 | — | — | — | |
| Bristol-Myers Squibb Co. | 3.04 | 3.13 | — | — | — | |
| Danaher Corp. | 1.84 | 1.92 | — | — | — | |
| Eli Lilly & Co. | 5.44 | 8.27 | — | — | — | |
| Gilead Sciences Inc. | 3.23 | 3.76 | — | — | — | |
| Johnson & Johnson | 2.46 | 2.76 | — | — | — | |
| Merck & Co. Inc. | 2.77 | 3.62 | — | — | — | |
| Pfizer Inc. | 2.35 | 2.44 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.36 | 1.56 | — | — | — | |
| Thermo Fisher Scientific Inc. | 2.33 | 2.00 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 1.33 | 1.35 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.86 | 3.16 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.74 | 2.93 | — | — | — | |
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
Financial leverage = Total assets ÷ Total Biogen Inc. shareholders’ equity
= 23,877,300 ÷ 10,896,200 = 2.19
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibited a general upward trend from 2017 to 2019, increasing from approximately $23.7 billion to $27.2 billion. However, after reaching this peak, the asset base contracted in subsequent years, declining to about $24.6 billion in 2020 and further to $23.9 billion in 2021. This pattern indicates initial growth followed by asset reduction over the latter two years.
- Total Shareholders’ Equity
- Shareholders' equity showed moderate growth from 2017 to 2019, rising from approximately $12.6 billion to $13.3 billion. A significant decrease occurred in 2020, where equity dropped sharply to around $10.7 billion, followed by a slight recovery in 2021 to approximately $10.9 billion. This decline in equity during 2020 suggests possible impairment, losses, or increased distributions affecting the company's net asset value.
- Financial Leverage
- The financial leverage ratio increased steadily from 1.88 in 2017 to 2.30 in 2020, indicating a rising proportion of debt relative to equity during this period. In 2021, leverage decreased marginally to 2.19 but remained elevated compared to earlier years. This trend reflects an increasing reliance on debt financing, potentially amplifying financial risk, especially considering the decrease in shareholders' equity observed in 2020.
Interest Coverage
Biogen Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Biogen Inc. | 1,556,100) | 4,000,600) | 5,888,500) | 4,430,700) | 2,539,100) | |
| Add: Net income attributable to noncontrolling interest | 171,500) | 59,900) | —) | 43,300) | 131,000) | |
| Add: Income tax expense | 52,500) | 992,300) | 1,158,000) | 1,425,600) | 2,458,700) | |
| Add: Interest expense | 253,600) | 222,500) | 187,400) | 200,600) | 250,800) | |
| Earnings before interest and tax (EBIT) | 2,033,700) | 5,275,300) | 7,233,900) | 6,100,200) | 5,379,600) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 8.02 | 23.71 | 38.60 | 30.41 | 21.45 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 6.36 | 2.38 | — | — | — | |
| Amgen Inc. | 6.60 | 7.44 | — | — | — | |
| Bristol-Myers Squibb Co. | 7.07 | -3.84 | — | — | — | |
| Danaher Corp. | 32.92 | 17.35 | — | — | — | |
| Eli Lilly & Co. | 19.12 | 21.11 | — | — | — | |
| Gilead Sciences Inc. | 9.27 | 2.70 | — | — | — | |
| Johnson & Johnson | 125.46 | 83.07 | — | — | — | |
| Merck & Co. Inc. | 18.22 | 11.58 | — | — | — | |
| Pfizer Inc. | 19.83 | 6.17 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 163.75 | 67.97 | — | — | — | |
| Thermo Fisher Scientific Inc. | 17.49 | 14.07 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 45.40 | 54.60 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 14.91 | 7.56 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.73 | 7.63 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,033,700 ÷ 253,600 = 8.02
2 Click competitor name to see calculations.
- Earnings before Interest and Tax (EBIT)
- The EBIT demonstrated an overall upward trend from 2017 to 2019, increasing from approximately 5.38 billion USD to 7.23 billion USD. However, after peaking in 2019, the figure declined significantly over the next two years, falling to about 5.28 billion USD in 2020, and experiencing a sharp decrease to roughly 2.03 billion USD in 2021. This suggests a notable reduction in operating profitability in the most recent periods.
- Interest Expense
- The interest expense exhibited some variability, starting at around 251 million USD in 2017 and then decreasing to approximately 201 million USD in 2018 and further to about 187 million USD in 2019. However, this trend reversed with an increase to approximately 223 million USD in 2020 and further to around 254 million USD in 2021. The upward movement in interest expense in the last two years may indicate a rise in financial obligations or borrowing costs.
- Interest Coverage Ratio
- The interest coverage ratio showed a generally strong position from 2017 through 2019, rising from 21.45 to 38.6, indicating an improving ability to cover interest expenses with operating earnings. Nevertheless, this ratio declined significantly afterwards, dropping to 23.71 in 2020 and sharply falling to 8.02 in 2021. This substantial decrease reflects a reduced capacity to meet interest payments from earnings, coinciding with both the decreasing EBIT and rising interest expenses observed.
Fixed Charge Coverage
Biogen Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to Biogen Inc. | 1,556,100) | 4,000,600) | 5,888,500) | 4,430,700) | 2,539,100) | |
| Add: Net income attributable to noncontrolling interest | 171,500) | 59,900) | —) | 43,300) | 131,000) | |
| Add: Income tax expense | 52,500) | 992,300) | 1,158,000) | 1,425,600) | 2,458,700) | |
| Add: Interest expense | 253,600) | 222,500) | 187,400) | 200,600) | 250,800) | |
| Earnings before interest and tax (EBIT) | 2,033,700) | 5,275,300) | 7,233,900) | 6,100,200) | 5,379,600) | |
| Add: Operating lease cost | 99,300) | 98,300) | 91,300) | 64,500) | 65,300) | |
| Earnings before fixed charges and tax | 2,133,000) | 5,373,600) | 7,325,200) | 6,164,700) | 5,444,900) | |
| Interest expense | 253,600) | 222,500) | 187,400) | 200,600) | 250,800) | |
| Operating lease cost | 99,300) | 98,300) | 91,300) | 64,500) | 65,300) | |
| Fixed charges | 352,900) | 320,800) | 278,700) | 265,100) | 316,100) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.04 | 16.75 | 26.28 | 23.25 | 17.23 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 5.90 | 2.28 | — | — | — | |
| Amgen Inc. | 5.67 | 6.48 | — | — | — | |
| Bristol-Myers Squibb Co. | 6.01 | -3.08 | — | — | — | |
| Danaher Corp. | 10.85 | 7.10 | — | — | — | |
| Eli Lilly & Co. | 13.33 | 15.06 | — | — | — | |
| Gilead Sciences Inc. | 8.15 | 2.45 | — | — | — | |
| Johnson & Johnson | 48.16 | 33.93 | — | — | — | |
| Merck & Co. Inc. | 13.08 | 8.47 | — | — | — | |
| Pfizer Inc. | 14.22 | 4.98 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 138.96 | 57.70 | — | — | — | |
| Thermo Fisher Scientific Inc. | 12.19 | 10.30 | — | — | — | |
| Vertex Pharmaceuticals Inc. | 29.62 | 39.35 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 11.49 | 6.11 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 8.86 | 5.56 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,133,000 ÷ 352,900 = 6.04
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax increased steadily from 2017 through 2019, rising from approximately 5.44 billion to 7.33 billion US dollars. However, a significant decline followed in 2020, with earnings dropping to about 5.37 billion, and a more pronounced decrease occurred in 2021, bringing the figure down to 2.13 billion. This indicates a substantial deterioration in operational profitability during the last two years under review.
- Fixed charges
- Fixed charges exhibited a moderate fluctuating trend over the period. Initially, fixed charges decreased from around 316 million in 2017 to approximately 265 million in 2018. Following this, a gradual increase was observed, reaching 353 million by 2021. This increase in fixed charges, especially between 2020 and 2021, may have contributed to the pressure on earnings before fixed charges and tax.
- Fixed charge coverage ratio
- The fixed charge coverage ratio mirrored the earnings trend, with a strong upward movement from 17.23 in 2017 to a peak of 26.28 in 2019. Subsequently, the ratio dropped significantly to 16.75 in 2020 and further declined sharply to 6.04 in 2021. The steep reduction in this ratio indicates declining ability to cover fixed charges from earnings, reflecting increased financial risk and potential strain on the company’s capacity to meet its fixed financial obligations.