Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
Biogen Inc., profitability ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| | Gross profit margin | 86.72% | 87.08% | 88.48% | 87.93% | 87.63% |
| | Operating profit margin | 43.54% | 44.99% | 45.44% | 40.94% | 36.29% |
| | Net profit margin | 20.69% | 32.34% | 32.95% | 30.25% | 26.87% |
| Return on Investment | ||||||
| | Return on equity (ROE) | 20.13% | 30.50% | 37.84% | 27.15% | 21.60% |
| | Return on assets (ROA) | 10.73% | 16.19% | 18.19% | 20.50% | 15.70% |
Source: Based on data from Biogen Inc. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Biogen Inc.'s gross profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Biogen Inc.'s operating profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Biogen Inc.'s net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Biogen Inc.'s ROE deteriorated from 2015 to 2016 and from 2016 to 2017. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Biogen Inc.'s ROA deteriorated from 2015 to 2016 and from 2016 to 2017. |
Gross Profit Margin
Biogen Inc., gross profit margin calculation
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Gross profit | 10,643,900 | 9,970,100 | 9,523,400 | 8,532,288 | 6,074,473 |
| | Revenues | 12,273,900 | 11,448,800 | 10,763,800 | 9,703,324 | 6,932,199 |
| Ratio | ||||||
| | Gross profit margin1 | 86.72% | 87.08% | 88.48% | 87.93% | 87.63% |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors | ||||||
| Abbott Laboratories | 47.75% | 54.09% | 54.19% | 51.73% | 50.43% | |
| AbbVie Inc. | 75.05% | 77.25% | 80.31% | 77.83% | 75.62% | |
| Allergan PLC | 86.40% | 87.23% | 68.08% | 51.74% | 45.94% | |
| Amgen Inc. | 81.33% | 80.99% | 79.82% | 77.12% | 81.61% | |
| Bristol-Myers Squibb Co. | 70.80% | 74.54% | 76.39% | 75.24% | 71.81% | |
| Celgene Corp. | 96.45% | 96.08% | 95.41% | 94.90% | 94.65% | |
| Eli Lilly & Co. | 73.46% | 73.35% | 74.76% | 74.85% | 78.76% | |
| Gilead Sciences Inc. | 82.97% | 85.77% | 87.54% | 84.52% | 73.54% | |
| Johnson & Johnson | 66.84% | 69.84% | 69.27% | 69.40% | 68.67% | |
| Merck & Co. Inc. | 68.16% | 65.10% | 62.19% | 60.30% | 61.50% | |
| Pfizer Inc. | 78.61% | 76.66% | 80.25% | 80.69% | 81.42% | |
| Regeneron Pharmaceuticals Inc. | 93.24% | 93.83% | 90.43% | 92.73% | 92.62% | |
Source: Based on data from Biogen Inc. Annual Reports
2017 Calculations
1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 10,643,900 ÷ 12,273,900 = 86.72%
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Biogen Inc.'s gross profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
Operating Profit Margin
Biogen Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Income from operations | 5,344,200 | 5,150,400 | 4,891,000 | 3,972,414 | 2,515,509 |
| | Revenues | 12,273,900 | 11,448,800 | 10,763,800 | 9,703,324 | 6,932,199 |
| Ratio | ||||||
| | Operating profit margin1 | 43.54% | 44.99% | 45.44% | 40.94% | 36.29% |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors | ||||||
| Abbott Laboratories | 6.30% | 15.27% | 14.05% | 12.84% | 12.03% | |
| AbbVie Inc. | 33.99% | 36.60% | 32.97% | 17.09% | 30.14% | |
| Allergan PLC | -37.15% | -12.53% | -20.00% | -9.71% | -4.88% | |
| Amgen Inc. | 45.76% | 44.74% | 40.44% | 32.03% | 32.25% | |
| Bristol-Myers Squibb Co. | 17.39% | 23.83% | 11.41% | 16.32% | 18.90% | |
| Celgene Corp. | 36.28% | 28.31% | 24.61% | 33.30% | 28.43% | |
| Eli Lilly & Co. | 9.38% | 16.30% | 13.47% | 13.56% | 23.24% | |
| Gilead Sciences Inc. | 55.04% | 58.87% | 69.03% | 62.37% | 41.87% | |
| Johnson & Johnson | 24.07% | 28.72% | 25.05% | 28.20% | 25.77% | |
| Merck & Co. Inc. | 16.28% | 13.51% | 17.54% | 13.42% | 13.53% | |
| Pfizer Inc. | 25.92% | 22.73% | 24.20% | 26.71% | 29.44% | |
| Regeneron Pharmaceuticals Inc. | 35.41% | 27.38% | 30.51% | 29.74% | 36.11% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | 23.68% | 27.18% | 26.43% | 24.67% | 23.77% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 16.14% | 17.70% | 17.41% | 16.88% | 16.25% | |
Source: Based on data from Biogen Inc. Annual Reports
2017 Calculations
1 Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 5,344,200 ÷ 12,273,900 = 43.54%
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Biogen Inc.'s operating profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
Net Profit Margin
Biogen Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Net income attributable to Biogen Inc. | 2,539,100 | 3,702,800 | 3,547,000 | 2,934,784 | 1,862,341 |
| | Revenues | 12,273,900 | 11,448,800 | 10,763,800 | 9,703,324 | 6,932,199 |
| Ratio | ||||||
| | Net profit margin1 | 20.69% | 32.34% | 32.95% | 30.25% | 26.87% |
| Benchmarks | ||||||
| Net Profit Margin, Competitors | ||||||
| Abbott Laboratories | 1.74% | 6.71% | 21.68% | 11.28% | 11.79% | |
| AbbVie Inc. | 18.82% | 23.22% | 22.50% | 8.89% | 21.97% | |
| Allergan PLC | -25.88% | 102.76% | 25.98% | -12.48% | -8.65% | |
| Amgen Inc. | 9.08% | 35.27% | 33.13% | 26.69% | 27.93% | |
| Bristol-Myers Squibb Co. | 4.85% | 22.94% | 9.45% | 12.62% | 15.64% | |
| Celgene Corp. | 22.66% | 17.87% | 17.49% | 26.44% | 22.79% | |
| Eli Lilly & Co. | -0.89% | 12.90% | 12.07% | 12.19% | 20.27% | |
| Gilead Sciences Inc. | 18.03% | 45.07% | 56.32% | 49.44% | 28.46% | |
| Johnson & Johnson | 1.70% | 23.01% | 21.99% | 21.96% | 19.40% | |
| Merck & Co. Inc. | 5.97% | 9.85% | 11.25% | 28.22% | 10.00% | |
| Pfizer Inc. | 40.55% | 13.66% | 14.25% | 18.42% | 42.65% | |
| Regeneron Pharmaceuticals Inc. | 20.41% | 18.42% | 15.50% | 12.34% | 20.16% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals & Biotechnology | 11.23% | 24.60% | 22.73% | 20.93% | 21.77% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 8.69% | 14.91% | 14.07% | 13.46% | 13.91% | |
Source: Based on data from Biogen Inc. Annual Reports
2017 Calculations
1 Net profit margin = 100 × Net income attributable to Biogen Inc. ÷ Revenues
= 100 × 2,539,100 ÷ 12,273,900 = 20.69%
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Biogen Inc.'s net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017. |
Return on Equity (ROE)
Biogen Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Net income attributable to Biogen Inc. | 2,539,100 | 3,702,800 | 3,547,000 | 2,934,784 | 1,862,341 |
| | Total Biogen Inc. shareholders' equity | 12,612,800 | 12,140,100 | 9,372,800 | 10,809,010 | 8,620,242 |
| Ratio | ||||||
| | ROE1 | 20.13% | 30.50% | 37.84% | 27.15% | 21.60% |
| Benchmarks | ||||||
| ROE, Competitors | ||||||
| Abbott Laboratories | 1.54% | 6.82% | 20.85% | 10.61% | 10.23% | |
| AbbVie Inc. | 104.16% | 128.41% | 130.39% | 101.84% | 91.90% | |
| Allergan PLC | -5.59% | 19.65% | 5.11% | -5.76% | -7.87% | |
| Amgen Inc. | 7.84% | 25.85% | 24.71% | 20.01% | 23.00% | |
| Bristol-Myers Squibb Co. | 8.58% | 27.55% | 10.97% | 13.49% | 16.91% | |
| Celgene Corp. | 42.48% | 30.29% | 27.07% | 30.65% | 25.94% | |
| Eli Lilly & Co. | -1.76% | 19.54% | 16.53% | 15.55% | 26.57% | |
| Gilead Sciences Inc. | 22.64% | 71.48% | 97.70% | 78.45% | 27.05% | |
| Johnson & Johnson | 2.16% | 23.49% | 21.66% | 23.40% | 18.68% | |
| Merck & Co. Inc. | 6.97% | 9.78% | 9.94% | 24.50% | 8.85% | |
| Pfizer Inc. | 29.88% | 12.12% | 10.75% | 12.81% | 28.83% | |
| Regeneron Pharmaceuticals Inc. | 19.51% | 20.13% | 17.40% | 13.69% | 21.74% | |
| ROE, Sector | ||||||
| Pharmaceuticals & Biotechnology | 11.00% | 22.76% | 19.94% | 20.07% | 20.31% | |
| ROE, Industry | ||||||
| Health Care | 12.09% | 20.08% | 17.51% | 18.41% | 18.69% | |
Source: Based on data from Biogen Inc. Annual Reports
2017 Calculations
1 ROE = 100 × Net income attributable to Biogen Inc. ÷ Total Biogen Inc. shareholders' equity
= 100 × 2,539,100 ÷ 12,612,800 = 20.13%
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Biogen Inc.'s ROE deteriorated from 2015 to 2016 and from 2016 to 2017. |
Return on Assets (ROA)
Biogen Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in thousands) | ||||||
| | Net income attributable to Biogen Inc. | 2,539,100 | 3,702,800 | 3,547,000 | 2,934,784 | 1,862,341 |
| | Total assets | 23,652,600 | 22,876,800 | 19,504,800 | 14,316,559 | 11,863,335 |
| Ratio | ||||||
| | ROA1 | 10.73% | 16.19% | 18.19% | 20.50% | 15.70% |
| Benchmarks | ||||||
| ROA, Competitors | ||||||
| Abbott Laboratories | 0.63% | 2.66% | 10.72% | 5.53% | 6.00% | |
| AbbVie Inc. | 7.50% | 9.01% | 9.70% | 6.44% | 14.14% | |
| Allergan PLC | -3.49% | 11.61% | 2.88% | -3.10% | -3.30% | |
| Amgen Inc. | 2.48% | 9.95% | 9.69% | 7.47% | 7.68% | |
| Bristol-Myers Squibb Co. | 3.00% | 13.22% | 4.93% | 5.94% | 6.64% | |
| Celgene Corp. | 9.75% | 7.12% | 5.92% | 11.53% | 10.84% | |
| Eli Lilly & Co. | -0.45% | 7.05% | 6.77% | 6.43% | 13.29% | |
| Gilead Sciences Inc. | 6.58% | 23.70% | 34.93% | 34.91% | 13.67% | |
| Johnson & Johnson | 0.83% | 11.71% | 11.55% | 12.45% | 10.42% | |
| Merck & Co. Inc. | 2.72% | 4.11% | 4.36% | 12.12% | 4.17% | |
| Pfizer Inc. | 12.40% | 4.20% | 4.16% | 5.40% | 12.78% | |
| Regeneron Pharmaceuticals Inc. | 13.67% | 12.84% | 11.34% | 8.99% | 14.38% | |
| ROA, Sector | ||||||
| Pharmaceuticals & Biotechnology | 4.19% | 9.23% | 8.58% | 9.14% | 9.39% | |
| ROA, Industry | ||||||
| Health Care | 4.69% | 8.14% | 7.43% | 8.24% | 8.60% | |
Source: Based on data from Biogen Inc. Annual Reports
2017 Calculations
1 ROA = 100 × Net income attributable to Biogen Inc. ÷ Total assets
= 100 × 2,539,100 ÷ 23,652,600 = 10.73%
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Biogen Inc.'s ROA deteriorated from 2015 to 2016 and from 2016 to 2017. |