Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
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Profitability Ratios (Summary)
Biogen Inc., profitability 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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable during the initial reporting periods, fluctuating slightly around the mid-80% range from early 2017 through early 2020. Beginning in 2020, a gradual declining trend is evident, with the margin decreasing consistently across subsequent quarters. By late 2022, the gross profit margin had dropped to just above 77%, indicating a reduction in cost efficiency or pricing power over this period.
- Operating Profit Margin
- Operating profit margin demonstrated moderate growth from early 2017, with an upward trend peaking around the end of 2019 and early 2020, reaching levels exceeding 50%. Following this peak, a significant decline is visible, reaching a low in the neighborhood of 17% by late 2021. However, there is evidence of recovery starting in 2022, with margins improving back to over 30% by the end of the observed period. This pattern suggests volatility, possibly due to changes in operating expenses or shifts in revenue structure.
- Net Profit Margin
- Net profit margin saw a consistent increase from early 2017 through to early 2020, climbing from approximately 20% to more than 40%. After this peak, a downward trend ensued, dropping below 15% by late 2021. Similar to the operating margin, net margin shows signs of improvement during 2022, rising back to nearly 28% by the last reported quarter. This trend indicates fluctuations in overall profitability influenced by both operational performance and other factors such as taxes, interest, or extraordinary items.
- Return on Equity (ROE)
- ROE depicted strong growth from early 2017 until late 2020, reaching a high above 50% in that timeframe. Post-2020, a notable decline occurs, falling steadily to a low point around 12% in mid-2022. Subsequently, an upturn is observed toward the end of 2022, moving back above 20%. This variable trend reflects changes in net income relative to shareholder equity, suggesting fluctuations in profitability and capital management effectiveness over the period.
- Return on Assets (ROA)
- ROA experienced an upward trajectory from early 2017 until 2020, increasing from approximately 11% to over 23%. Thereafter, the ratio decreased sharply, reaching lows near 6% by the end of 2021. A recovery phase follows, with ROA improving to above 11% by the latest quarter. This pattern indicates shifts in how effectively the company utilized its assets to generate profit, with a peak performance period in 2020 followed by a downturn and partial recovery.
Return on Sales
Return on Investment
Gross Profit Margin
Biogen Inc., gross profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Gross profit margin = 100
× (Gross profitQ3 2022
+ Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The data reveals several noteworthy trends in the company's financial performance over the periods analyzed.
- Gross Profit
- Gross profit exhibited a generally fluctuating pattern with notable peaks and troughs. From March 2017 through December 2018, gross profit showed an overall increasing trend, peaking in the fourth quarter of 2018. Subsequently, from 2019 to mid-2020, gross profit remained relatively stable with minor uplifts, reaching another peak in mid-2020. However, starting from the last quarter of 2020 through to the third quarter of 2022, gross profit demonstrated a declining trajectory, with the lowest recorded values appearing in the later periods, indicating a deterioration in profitability during this time frame.
- Revenue
- Revenue mirrored some aspects of the gross profit trend but with less pronounced fluctuations. It increased steadily from the first quarter of 2017 until the end of 2018, reaching its highest figures in that period. From 2019 to mid-2020, revenue maintained a fairly consistent level before experiencing a decline beginning in the last quarter of 2020 extending into 2022. This downward trend suggests reduced sales or lower pricing power, impacting the company’s top line.
- Gross Profit Margin
- Gross profit margin figures, available from March 2018 onwards, reflect a gradual erosion in profitability efficiency. Initially, margins remained high—around 86 to 88 percent—until the mid-2020 period. Thereafter, margins steadily declined quarter over quarter, reaching approximately 77 percent by the third quarter of 2022. This consistent contraction may indicate increasing cost pressures, reduced pricing, or changes in the product mix negatively impacting cost effectiveness.
In summary, while the company experienced growth in revenue and gross profit through 2017 and 2018, subsequent periods disclosed a reversal in these trends. Both gross profit and revenue declined from late 2020 onwards, accompanied by a sustained decrease in gross profit margins, highlighting challenges in maintaining profitability and revenue growth. These trends suggest potential operational pressures or market headwinds impacting financial performance in recent quarters.
Operating Profit Margin
Biogen Inc., operating profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2022
+ Income from operationsQ2 2022
+ Income from operationsQ1 2022
+ Income from operationsQ4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial analysis reveals several notable trends over the examined periods. Revenue exhibited a generally upward trajectory from early 2017 until the end of 2019, reaching a peak near the final quarter of that year. However, starting in 2020, revenue displayed increased volatility with a declining trend, marked by a significant drop in the first quarter of 2021 and continuing at lower levels through the next quarters observed. This decline suggests challenges in sustaining prior revenue levels during this timeframe.
Income from operations followed a somewhat similar pattern but with heightened fluctuations. Income from operations increased steadily from early 2017 through the third quarter of 2019, peaking around this time before beginning a downward trend. A notable sharp decrease occurred in the fourth quarter of 2020, resulting in a negative value indicating an operational loss for that period. Following this low point, income from operations recovered somewhat in 2021 and 2022, though it did not return to the prior peak levels and showed a somewhat inconsistent pattern with periods of increase and decrease.
The operating profit margin percentage, available from the first quarter of 2017 onward, stayed relatively stable and high until late 2020, ranging mostly between approximately 42% and 51%. This suggests a strong operational efficiency and profitability during this period relative to revenue. However, beginning in the first quarter of 2021, there was a marked decrease in operating profit margin, dropping to less than 20% in some quarters and showing signs of recovery only towards the end of 2022, where margins increased but remained below earlier levels.
- Revenue
- Showed growth until late 2019 followed by a decline and increased volatility through 2022.
- Income from Operations
- Increased through 2019, experienced a significant decline and negative value in late 2020, then partially recovered but remained inconsistent.
- Operating Profit Margin
- Maintained a high level through 2020 with values mostly above 40%; however, declined significantly in 2021, indicating reduced operational efficiency or profitability relative to revenue.
Overall, the data suggests a period of stable growth and profitability up to 2019, followed by operational and market challenges starting in 2020. The sharp disruptions beginning in late 2020 coincide with a decline in both the absolute operational income and profitability metrics, likely impacting the company's financial health and performance dynamics. Although some recovery signs are evident in 2022, profitability and revenue levels have not fully reverted to previous highs, indicating ongoing hurdles in returning to the earlier growth and profit trends.
Net Profit Margin
Biogen Inc., net profit margin 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income attributable to Biogen Inc. | ||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
Net profit margin = 100
× (Net income attributable to Biogen Inc.Q3 2022
+ Net income attributable to Biogen Inc.Q2 2022
+ Net income attributable to Biogen Inc.Q1 2022
+ Net income attributable to Biogen Inc.Q4 2021)
÷ (RevenueQ3 2022
+ RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial data reflects several notable trends in the company's profitability and revenue performance over the analyzed periods. Below is a detailed analysis of these patterns:
- Net Income Attributable to the Company
-
Net income exhibits significant variability across quarters, with strong positive results in most periods, reaching peaks such as 1,446,400 and 1,545,900 thousand US dollars in Q3 and Q4 of 2017 respectively. A notable exception occurs in Q4 2017 where a sharp negative value of -297,400 thousand US dollars is recorded, indicating a loss in that quarter.
Following this loss, net income returns to positive territory with fluctuating values. It peaks again in Q4 2019 at approximately 1,439,700 thousand US dollars but subsequently experiences a general decline through 2020 and into early 2021. In mid to late 2021 and into 2022, net income shows some recovery, reaching over 1,000,000 thousand US dollars by Q4 2022, suggesting improved profitability towards the end of the observed period.
- Revenue
-
Revenue demonstrates a mild upward trend initially, rising from approximately 2,810,700 thousand US dollars in Q1 2017 to a peak around 3,671,300 thousand US dollars in Q4 2019. This increase indicates progressive growth in sales or service income over these years.
However, from Q1 2020 onwards, revenue shows a downward trajectory, declining substantially to 2,852,600 thousand US dollars by Q1 2021 and further down to near 2,508,500 thousand US dollars by Q4 2022. This sustained decrease potentially reflects challenges such as market contraction, pricing pressure, or reduced demand.
- Net Profit Margin
-
The net profit margin is available starting in Q1 2018 and illustrates a generally strong profitability ratio in percentage terms. Margins begin near 20.69% and improve steadily through 2018 and 2019, reaching a high of approximately 40.96% in Q1 2020.
Subsequent quarters show a downward trend in margins, falling to as low as 13.40% in Q4 2021, before demonstrating a modest rebound to 27.64% by Q3 2022. This pattern indicates that although profitability relative to revenue was robust in earlier periods, operational efficiency or cost pressures may have increased, impacting margins negatively before some recovery.
In summary, the company experienced strong profit generation and revenue growth through 2017 to 2019, with an isolated loss in Q4 2017. Post-2019, revenue decline and shrinking net profit margins suggest emerging operational or market challenges. Nevertheless, recent quarters imply some restoration of profitability, potentially reflecting adaptive strategies or improved market conditions.
Return on Equity (ROE)
Biogen Inc., ROE 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income attributable to Biogen Inc. | ||||||||||||||||||||||||||||||
| Total Biogen Inc. shareholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROE = 100
× (Net income attributable to Biogen Inc.Q3 2022
+ Net income attributable to Biogen Inc.Q2 2022
+ Net income attributable to Biogen Inc.Q1 2022
+ Net income attributable to Biogen Inc.Q4 2021)
÷ Total Biogen Inc. shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the examined periods. Net income attributable to the company fluctuates considerably, exhibiting both growth and decline phases. Initial quarters show strong net income values in the range of approximately 700 million to over 1.2 billion US dollars. However, a significant net loss appears at the end of 2017, indicating a substantial drop in profitability during that quarter. Subsequently, net income resumes positive figures, with peak values approaching or exceeding 1.5 billion US dollars in some quarters of 2019 and the first half of 2020. However, a downward trajectory is evident from late 2020 through 2021, where net income diminishes to levels approximately between 300 to 450 million US dollars, followed by a partial recovery in 2022, culminating in values exceeding 1 billion US dollars by the third quarter of 2022.
Total shareholders’ equity demonstrates a generally cyclical pattern with noticeable declines and recoveries. Starting from approximately 11.5 billion US dollars in early 2017, equity peaks around 14 billion between early 2018 and early 2019. Following this peak, a gradual decline ensues through 2020 and into early 2021, with equity levels dropping to roughly 10.7 billion US dollars. From mid-2021 onward, a sustained recovery is observable, with equity reaching roughly 12.7 billion US dollars by the third quarter of 2022. This oscillation may reflect changes in retained earnings, treasury stock activities, or other equity adjustments over time.
Return on equity (ROE) figures, available from the first quarter of 2018, reflect profitability relative to shareholders’ equity and show initially high levels. The ROE surpasses 20% in early 2018 and continues to rise, peaking above 50% in late 2020, indicative of very strong equity efficiency during that period. Thereafter, ROE exhibits a steady decline across 2021, falling below 15% by year-end 2021. A moderate improvement occurs in 2022, with ROE increasing to approximately 22.4% by the third quarter, suggesting a partial restoration of favorable returns to shareholders.
Overall, the company experienced marked volatility in profitability across the analyzed quarters, with a pronounced loss in late 2017 contrasting with periods of strong earnings in subsequent years. Shareholders’ equity trends correspond with these fluctuations but also include cyclic movements of their own. ROE dynamics highlight changing efficiency in generating profits from shareholders' investments, characterized by an impressive peak followed by a period of decline and recent improvement.
- Net Income
- Highly variable with large peaks and troughs; notable loss in late 2017; recovery and growth through 2019; declining trend in 2021; partial recovery in 2022.
- Shareholders’ Equity
- Experienced cyclic fluctuations; peaks around early 2018 and 2019; declines through 2020 and early 2021; sustained recovery thereafter into 2022.
- Return on Equity (ROE)
- Impressive growth from 2018, peaking above 50% in late 2020; subsequent decline through 2021; partial rebound in 2022 to over 22%.
Return on Assets (ROA)
Biogen Inc., ROA 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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income attributable to Biogen Inc. | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| AbbVie Inc. | ||||||||||||||||||||||||||||||
| Amgen Inc. | ||||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | ||||||||||||||||||||||||||||||
| Danaher Corp. | ||||||||||||||||||||||||||||||
| Eli Lilly & Co. | ||||||||||||||||||||||||||||||
| Gilead Sciences Inc. | ||||||||||||||||||||||||||||||
| Johnson & Johnson | ||||||||||||||||||||||||||||||
| Merck & Co. Inc. | ||||||||||||||||||||||||||||||
| Pfizer Inc. | ||||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | ||||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | ||||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q3 2022 Calculation
ROA = 100
× (Net income attributable to Biogen Inc.Q3 2022
+ Net income attributable to Biogen Inc.Q2 2022
+ Net income attributable to Biogen Inc.Q1 2022
+ Net income attributable to Biogen Inc.Q4 2021)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in net income, total assets, and return on assets (ROA) over the period examined.
- Net Income Attributable to Biogen Inc.
- The net income figures demonstrate considerable volatility across the quarters. Beginning with a gradual increase from 747,600 thousand US dollars in March 2017 to a peak of approximately 1,546,100 thousand US dollars in the third quarter of 2019, the net income showed strong growth during this initial phase. A marked decline occurred in the fourth quarter of 2017, with a negative figure of -297,400 thousand US dollars, indicating a significant loss during that period. Following this loss, the net income generally recovered and remained relatively resilient with some fluctuations throughout subsequent quarters. However, from 2020 onwards, net income exhibits a downward trend, reaching a low of 303,800 thousand in the third quarter of 2021 before rebounding to over one billion US dollars in the last two recorded quarters. This pattern suggests periods of both strong profitability and notable challenges impacting earnings.
- Total Assets
- Total assets show a general upward trajectory from 21,195,900 thousand US dollars in March 2017 to a peak near 27,484,000 thousand US dollars in the third quarter of 2019. Subsequently, there is a gradual decline in asset levels through 2020 and 2021, bottoming around 23,614,400 thousand US dollars in March 2022. The latest data exhibits a moderate recovery to approximately 24,854,200 thousand US dollars by the third quarter of 2022. This fluctuation in assets reflects potential shifts in investment, asset disposals, or adjustments in asset valuation practices over the years.
- Return on Assets (ROA)
- ROA data begins in the first quarter of 2018 and illustrates an overall declining trend across the timeline. Starting at 10.73% in March 2018, ROA consistently increased reaching a high of 23.23% in the third quarter of 2020, suggesting improved operational efficiency or profitability relative to assets during this interval. After this peak, ROA declines notably to a low of 6.14% in December 2021, evidencing diminishing returns on the company's asset base. The final recorded quarters show a partial recovery with ROA increasing to 11.53% by the third quarter of 2022, indicating some regained effectiveness in asset utilization.
In summary, the data indicates that the company experienced strong earnings growth and asset expansion until around late 2019, followed by a period of earnings volatility, asset contraction, and declining asset efficiency. The recovery observed in net income and ROA towards the latest quarters may reflect adjustments or strategic responses to preceding adverse conditions. Monitoring these indicators in subsequent periods would be essential to assess the sustainability of improved financial performance.