Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Biogen Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the financial turnover ratios over the observed quarters reveals distinct trends across net fixed asset turnover, net fixed asset turnover including operating lease right-of-use assets, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- This ratio showed an overall increasing trend from early 2018 through mid-2019, rising from approximately 3.78 to peaks above 4.5. Subsequently, from late 2019 onward, a gradual decline is evident, falling below 3.5 by late 2021 and stabilizing around 3.17 through third quarter 2022. This pattern suggests an initial improvement in the efficiency with which fixed assets generated sales, followed by a sustained reduction in turnover efficiency in later periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted ratio presents a similar but more moderate pattern compared to the unadjusted fixed asset turnover. It rose moderately early in 2019 to around 4.0 but then exhibited a continual decline, ending near 2.8 by the latest quarter in 2022. The less pronounced peak and sharper subsequent decrease imply that including operating lease assets reduces perceived asset turnover efficiency and reflects growing impact of lease-related assets on the asset base.
- Total Asset Turnover
- Total asset turnover ratios fluctuated between 0.48 and 0.57 during the early part of the observed period (2018-2020), showing some improvement in asset utilization. However, from 2021 onwards, the ratio trended downward, falling toward 0.42 by late 2022. This decline suggests a decrease in the company's overall efficiency in generating revenues from its total asset base.
- Equity Turnover
- Equity turnover initially increased significantly during 2018 and 2019, moving from 0.9 to above 1.3, indicating increased revenue generation per unit of equity. After peaking in late 2020 and early 2021, the ratio steadily declined through 2022, dropping below 0.9 by the latest quarter. This downward trend could reflect either slower revenue growth relative to equity or an increase in equity that is not matched proportionally by revenue increases.
Overall, the data depicts a period of improving efficiency in asset utilization and equity turnover ending around 2019 or early 2020, followed by a general decline in turnover ratios thereafter. This pattern might suggest challenges in maintaining revenue growth efficiency relative to the asset base and equity structure in more recent periods.
Net Fixed Asset Turnover
Biogen Inc., net fixed asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenue | 2,508,500) | 2,589,100) | 2,531,800) | 2,733,800) | 2,778,900) | 2,775,000) | 2,694,000) | 2,852,600) | 3,376,100) | 3,681,600) | 3,534,300) | 3,671,300) | 3,600,100) | 3,616,700) | 3,489,800) | 3,526,300) | 3,439,000) | 3,356,500) | 3,131,100) | ||||||
| Property, plant and equipment, net | 3,266,400) | 3,355,100) | 3,372,800) | 3,416,400) | 3,410,700) | 3,442,200) | 3,438,300) | 3,411,500) | 3,359,900) | 3,330,700) | 3,281,600) | 3,247,300) | 3,138,100) | 3,077,500) | 3,013,800) | 3,601,200) | 3,538,900) | 3,409,000) | 3,334,700) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | 3.17 | 3.17 | 3.21 | 3.21 | 3.25 | 3.40 | 3.67 | 3.94 | 4.25 | 4.35 | 4.39 | 4.43 | 4.54 | 4.57 | 4.58 | 3.74 | 3.74 | 3.78 | 3.78 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 11.82 | 11.57 | 11.18 | 11.00 | 10.75 | 10.41 | 9.67 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 4.73 | 4.77 | 4.75 | 4.69 | 4.89 | 4.92 | 4.93 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 7.74 | 7.90 | 7.77 | 7.67 | 7.75 | 7.66 | 7.43 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 8.40 | 8.12 | 7.94 | 7.77 | 7.71 | 7.84 | 7.59 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 3.14 | 3.18 | 3.22 | 3.15 | 3.11 | 3.02 | 2.95 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 5.01 | 5.13 | 5.18 | 5.27 | 5.40 | 5.27 | 5.06 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 5.29 | 5.21 | 5.07 | 4.95 | 4.95 | 4.79 | 4.59 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 2.89 | 2.85 | 2.73 | 2.53 | 2.57 | 2.61 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 6.47 | 6.64 | 6.12 | 5.46 | 4.79 | 3.89 | 3.31 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 3.70 | 3.91 | 4.64 | 4.62 | 3.99 | 3.69 | 2.82 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 5.12 | 5.02 | 4.87 | 4.71 | 5.54 | 5.83 | 5.85 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 7.78 | 7.59 | 7.18 | 6.92 | 6.84 | 6.54 | 6.51 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Property, plant and equipment, net
= (2,508,500 + 2,589,100 + 2,531,800 + 2,733,800)
÷ 3,266,400 = 3.17
2 Click competitor name to see calculations.
The revenue exhibited an overall fluctuating trend throughout the observed periods. Initially, there was a steady increase from around 3,131,100 to a peak near 3,671,300 thousand US dollars towards the end of 2019. However, subsequent quarters showed a decline, with revenue decreasing notably by the end of 2020 to approximately 2,852,600 thousand US dollars. This downward movement continued into 2022, with revenue reaching near 2,508,500 thousand US dollars in the last quarter observed.
Concurrently, the net property, plant and equipment values showed moderate changes over the periods. There was an initial increase from about 3,334,700 thousand US dollars in early 2018 to a high of roughly 3,615,400 thousand US dollars towards the end of 2019. From early 2020 onward, the net fixed assets remained relatively stable with minor fluctuations, trending slightly downward towards the later quarters, ending around 3,266,400 thousand US dollars in the most recent quarter.
The net fixed asset turnover ratio, which measures how efficiently the fixed assets are used to generate revenue, revealed some significant changes. It started at approximately 3.78 in early 2018 and increased to a peak of about 4.58 by early 2019, indicating improved operational efficiency during that timeframe. However, from that peak, the ratio showed a consistent decline through all subsequent periods, dropping to around 3.17 by late 2022. This decreasing ratio aligns with the reduction in revenue and suggests that the company’s asset usage effectiveness diminished over the later periods despite stable asset levels.
In summary, the data reflects a period of revenue growth and improved asset utilization through early 2019, followed by a sustained decline in both revenue and asset turnover effectiveness. The fixed asset base remained relatively stable in the latter periods, but the company’s ability to generate revenue from these assets weakened. This trend could signal challenges in maintaining revenue growth and operational efficiency in the more recent quarters.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Biogen Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenue | 2,508,500) | 2,589,100) | 2,531,800) | 2,733,800) | 2,778,900) | 2,775,000) | 2,694,000) | 2,852,600) | 3,376,100) | 3,681,600) | 3,534,300) | 3,671,300) | 3,600,100) | 3,616,700) | 3,489,800) | 3,526,300) | 3,439,000) | 3,356,500) | 3,131,100) | ||||||
| Property, plant and equipment, net | 3,266,400) | 3,355,100) | 3,372,800) | 3,416,400) | 3,410,700) | 3,442,200) | 3,438,300) | 3,411,500) | 3,359,900) | 3,330,700) | 3,281,600) | 3,247,300) | 3,138,100) | 3,077,500) | 3,013,800) | 3,601,200) | 3,538,900) | 3,409,000) | 3,334,700) | ||||||
| Operating lease assets | 424,500) | 321,100) | 359,000) | 375,400) | 389,100) | 402,500) | 414,500) | 433,300) | 434,200) | 436,200) | 422,000) | 427,000) | 422,000) | 434,400) | 447,800) | —) | —) | —) | —) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 3,690,900) | 3,676,200) | 3,731,800) | 3,791,800) | 3,799,800) | 3,844,700) | 3,852,800) | 3,844,800) | 3,794,100) | 3,766,900) | 3,703,600) | 3,674,300) | 3,560,100) | 3,511,900) | 3,461,600) | 3,601,200) | 3,538,900) | 3,409,000) | 3,334,700) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.81 | 2.89 | 2.90 | 2.90 | 2.92 | 3.04 | 3.27 | 3.50 | 3.76 | 3.85 | 3.89 | 3.91 | 4.00 | 4.01 | 3.99 | 3.74 | 3.74 | 3.78 | 3.78 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | 5.95 | 5.89 | 5.53 | 5.32 | 5.26 | 4.99 | 4.90 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (2,508,500 + 2,589,100 + 2,531,800 + 2,733,800)
÷ 3,690,900 = 2.81
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the examined quarters. Revenue demonstrates fluctuations with an overall downward trajectory in the later periods. After peaking around mid-2019, there is a decline particularly pronounced during 2020 and continuing through 2022. This decline indicates potential challenges in sales or market conditions affecting the company's top-line performance.
Conversely, the net value of property, plant, and equipment, including operating lease right-of-use assets, displays a generally steady increase from early 2018 through to approximately 2020. After reaching a plateau around this time, the asset base stabilizes with minor fluctuations but maintains a slightly downward bias toward the latest reported quarters. This pattern suggests ongoing investment in fixed assets up to 2020, followed by a more cautious or steady capital expenditure approach subsequently.
The net fixed asset turnover ratio, which measures how efficiently the fixed asset base generates revenue, shows a clear declining trend from early 2018 through 2022. Starting at approximately 3.78, the ratio falls gradually and consistently, reaching near 2.81 by the last quarter reported. This decrease implies diminished efficiency in utilizing fixed assets to generate sales, potentially reflecting the combined effects of stagnating or reduced revenue against a relatively stable asset base.
- Revenue
- Exhibits variability with an initial growth phase followed by a downturn from 2020 onwards.
- Property, Plant, and Equipment, Net
- Shows a growth trend up to 2020, then stabilizes and slightly declines, indicating a cautious investment stance or asset aging.
- Net Fixed Asset Turnover Ratio
- Consistently decreases throughout the period, signaling reduced efficiency in asset utilization impacting revenue generation.
In summary, while fixed assets have been maintained or modestly expanded, the declining revenue combined with falling fixed asset turnover highlights operational challenges. This trend underscores the importance of evaluating asset management and revenue strategies to enhance overall financial performance going forward.
Total Asset Turnover
Biogen Inc., total asset turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenue | 2,508,500) | 2,589,100) | 2,531,800) | 2,733,800) | 2,778,900) | 2,775,000) | 2,694,000) | 2,852,600) | 3,376,100) | 3,681,600) | 3,534,300) | 3,671,300) | 3,600,100) | 3,616,700) | 3,489,800) | 3,526,300) | 3,439,000) | 3,356,500) | 3,131,100) | ||||||
| Total assets | 24,854,200) | 25,081,400) | 23,614,400) | 23,877,300) | 23,806,700) | 24,470,400) | 23,854,700) | 24,618,900) | 24,934,100) | 25,511,800) | 26,119,200) | 27,234,300) | 27,484,000) | 26,287,600) | 26,445,500) | 25,288,900) | 25,492,200) | 23,952,900) | 26,090,100) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | 0.42 | 0.42 | 0.46 | 0.46 | 0.47 | 0.48 | 0.53 | 0.55 | 0.57 | 0.57 | 0.55 | 0.53 | 0.52 | 0.54 | 0.52 | 0.53 | 0.52 | 0.54 | 0.48 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 0.41 | 0.40 | 0.40 | 0.38 | 0.37 | 0.36 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 0.38 | 0.41 | 0.41 | 0.40 | 0.37 | 0.40 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 0.48 | 0.47 | 0.46 | 0.42 | 0.41 | 0.40 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 0.39 | 0.38 | 0.36 | 0.35 | 0.34 | 0.34 | 0.33 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 0.62 | 0.62 | 0.62 | 0.58 | 0.58 | 0.56 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 0.43 | 0.43 | 0.43 | 0.40 | 0.41 | 0.39 | 0.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 0.55 | 0.54 | 0.53 | 0.52 | 0.51 | 0.51 | 0.49 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 0.55 | 0.53 | 0.51 | 0.46 | 0.51 | 0.52 | 0.51 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 0.51 | 0.52 | 0.50 | 0.45 | 0.39 | 0.33 | 0.29 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 0.50 | 0.52 | 0.63 | 0.63 | 0.57 | 0.58 | 0.52 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 0.49 | 0.47 | 0.44 | 0.41 | 0.53 | 0.57 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 0.52 | 0.54 | 0.56 | 0.56 | 0.57 | 0.55 | 0.53 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Total asset turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Total assets
= (2,508,500 + 2,589,100 + 2,531,800 + 2,733,800)
÷ 24,854,200 = 0.42
2 Click competitor name to see calculations.
The company's revenue demonstrated a fluctuating pattern over the observed quarters. Starting at approximately $3.13 billion in early 2018, revenue generally increased through 2018 and 2019, peaking near $3.68 billion in mid-2020. Following this peak, revenue experienced a notable decline through late 2020 and the entirety of 2021, with figures dropping to around $2.73 billion by the end of 2021. This downward trend extended into 2022, with quarterly revenues further decreasing to roughly $2.51 billion by the third quarter of 2022.
Total assets showed variability over the same period. Beginning around $26.1 billion in early 2018, assets declined somewhat in mid-2018 but then fluctuated between approximately $24.6 billion and $27.5 billion over the next several quarters. From mid-2020 onward, total assets hovered mostly in the $23.8 to $25.0 billion range, showing a slight downward trend but with some recovery towards mid-2022 before settling near $24.9 billion at the end of the observed periods.
The total asset turnover ratio, which measures how efficiently the company uses its assets to generate revenue, also experienced shifts. Initially, the ratio increased from 0.48 in early 2018 to a peak of 0.57 during mid to late 2020, indicating improved efficiency in asset utilization during that time. However, from 2021 onwards, there was a consistent decline in turnover ratio, dropping to 0.42 by the third quarter of 2022. This decline suggests a reduction in revenue generation relative to the asset base.
- Revenue Trends
- Growth in revenue from 2018 through mid-2020 followed by a steady decline through 2022.
- Total Assets Trends
- Fluctuations with an overall moderate decline from early 2018 to late 2022, with some recovery periods.
- Total Asset Turnover Trends
- Improvement in asset utilization efficiency peaked in 2020, followed by a noticeable decrease through 2022.
In summary, the period under review shows initial growth and improving operational efficiency until 2020, after which revenue and asset turnover declined, reflecting challenges in sustaining revenue generation relative to asset size. Asset levels decreased moderately but remained relatively stable compared to revenue and efficiency ratios, indicating potential shifts in asset management or capital allocation strategies amid the changing revenue environment.
Equity Turnover
Biogen Inc., equity turnover calculation (quarterly data)
| Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Revenue | 2,508,500) | 2,589,100) | 2,531,800) | 2,733,800) | 2,778,900) | 2,775,000) | 2,694,000) | 2,852,600) | 3,376,100) | 3,681,600) | 3,534,300) | 3,671,300) | 3,600,100) | 3,616,700) | 3,489,800) | 3,526,300) | 3,439,000) | 3,356,500) | 3,131,100) | ||||||
| Total Biogen Inc. shareholders’ equity | 12,775,500) | 11,872,500) | 11,242,300) | 10,896,200) | 10,429,900) | 10,751,900) | 10,682,200) | 10,700,300) | 10,758,500) | 11,308,700) | 12,546,900) | 13,343,200) | 13,995,900) | 12,952,900) | 13,829,900) | 13,039,600) | 13,766,600) | 12,260,900) | 14,053,700) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | 0.81 | 0.90 | 0.96 | 1.01 | 1.06 | 1.09 | 1.18 | 1.26 | 1.33 | 1.28 | 1.15 | 1.08 | 1.02 | 1.09 | 1.00 | 1.03 | 0.96 | 1.05 | 0.90 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 3.62 | 3.91 | 3.48 | 3.65 | 4.07 | 4.27 | 3.66 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Amgen Inc. | 6.71 | 10.17 | 26.68 | 3.63 | 2.96 | 2.93 | 2.56 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Bristol-Myers Squibb Co. | 1.43 | 1.45 | 1.49 | 1.29 | 1.22 | 1.21 | 1.14 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Danaher Corp. | 0.67 | 0.66 | 0.65 | 0.65 | 0.65 | 0.62 | 0.61 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Eli Lilly & Co. | 2.90 | 3.40 | 3.14 | 3.15 | 3.58 | 4.15 | 3.69 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Gilead Sciences Inc. | 1.27 | 1.34 | 1.37 | 1.28 | 1.27 | 1.34 | 1.33 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Johnson & Johnson | 1.29 | 1.25 | 1.27 | 1.27 | 1.30 | 1.28 | 1.28 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Merck & Co. Inc. | 1.33 | 1.32 | 1.32 | 1.28 | 1.33 | 1.41 | 1.73 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Pfizer Inc. | 1.08 | 1.16 | 1.12 | 1.05 | 0.91 | 0.79 | 0.68 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Regeneron Pharmaceuticals Inc. | 0.64 | 0.69 | 0.83 | 0.86 | 0.78 | 0.82 | 0.77 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Thermo Fisher Scientific Inc. | 1.01 | 1.01 | 1.00 | 0.96 | 1.01 | 1.04 | 1.02 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Vertex Pharmaceuticals Inc. | 0.67 | 0.70 | 0.73 | 0.75 | 0.75 | 0.73 | 0.71 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Equity turnover
= (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
÷ Total Biogen Inc. shareholders’ equity
= (2,508,500 + 2,589,100 + 2,531,800 + 2,733,800)
÷ 12,775,500 = 0.81
2 Click competitor name to see calculations.
The quarterly financial data demonstrates several noteworthy trends and fluctuations across the periods analyzed.
- Revenue
- Revenue initially increased steadily from March 2018 through December 2019, peaking at approximately 3,671 million US dollars. However, beginning in the first quarter of 2020, there was a notable decline in revenue, reaching a low point of about 2,852 million US dollars by December 2020. Following this trough, revenue remained relatively stable but at a lower level compared to prior years, fluctuating around the 2,500 to 2,800 million US dollars range through the third quarter of 2022. This overall pattern suggests a peak in late 2019 followed by a significant decrease coincident with early 2020 periods, with no full recovery to previous peak levels by the end of the data series.
- Total Biogen Inc. shareholders’ equity
- Shareholders’ equity displayed considerable variability. It started at approximately 14,054 million US dollars in March 2018, dropping to a low near 11,309 million US dollars by June 2020. After this point, equity remained relatively stable with minor fluctuations, finishing at around 12,776 million US dollars in September 2022. Despite some recovery after mid-2020, equity levels did not return to those observed at the beginning of the period, indicating potential challenges affecting the company’s net asset value over time.
- Equity turnover
- The equity turnover ratio, an efficiency indicator of how well equity capital generates revenue, fluctuated within a narrow range. Initially, it increased from 0.9 in March 2018 to a peak of 1.33 by September 2020, indicating improved efficiency in generating revenue from equity investment. However, from late 2020 onwards, the ratio demonstrated a gradual decline, falling to 0.81 by September 2022. This decline suggests decreasing efficiency in utilizing shareholders’ equity to produce revenue in the most recent periods analyzed.
In summary, the financial data indicates that revenue and shareholders’ equity both peaked before 2020, followed by declines and a diminished level of performance thereafter. The equity turnover ratio suggests that while utilization of equity improved through 2020, it has deteriorated in more recent quarters. These trends potentially reflect external or internal factors impacting financial performance and efficiency during the periods observed.