Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Biogen Inc., short-term (operating) activity ratios
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Biogen Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Biogen Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Biogen Inc.’s payables turnover ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Biogen Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Biogen Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Biogen Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Biogen Inc.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Biogen Inc.’s number of days of payables outstanding decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Biogen Inc.’s cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Inventory Turnover
Biogen Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of sales, excluding amortization and impairment of acquired intangible assets | 1,955,400 | 1,816,300 | 1,630,000 | 1,478,700 | 1,240,400 | |
| Inventory | 804,200 | 929,900 | 902,700 | 1,001,600 | 893,400 | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.43 | 1.95 | 1.81 | 1.48 | 1.39 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Abbott Laboratories | 3.07 | 3.35 | 3.43 | 3.71 | — | |
| AbbVie Inc. | 4.10 | 4.81 | 4.39 | 4.04 | — | |
| Amgen Inc. | 1.22 | 1.39 | 1.44 | 1.52 | — | |
| Bristol-Myers Squibb Co. | 1.88 | 5.48 | 5.20 | 3.99 | — | |
| Eli Lilly & Co. | 1.48 | 1.56 | 1.36 | 1.59 | — | |
| Gilead Sciences Inc. | 5.07 | 5.96 | 5.46 | 2.68 | 2.05 | |
| Illumina Inc. | 3.00 | 2.68 | 2.78 | 2.44 | — | |
| Johnson & Johnson | 3.05 | 3.15 | 2.89 | 2.66 | — | |
| Merck & Co. Inc. | 2.36 | 2.48 | 2.51 | 2.85 | 3.18 | |
| Pfizer Inc. | 1.23 | 1.50 | 1.48 | 1.82 | 1.28 | |
| Regeneron Pharmaceuticals Inc. | 0.26 | 0.16 | 0.28 | 0.49 | — | |
| Vertex Pharmaceuticals Inc. | 3.27 | 3.29 | 2.46 | 2.71 | — | |
| Zoetis Inc. | 1.41 | 1.37 | 1.24 | 1.11 | — | |
| Inventory Turnover, Sector | ||||||
| Pharmaceuticals & Biotechnology | 2.20 | 2.50 | 2.40 | 2.41 | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 5.37 | 5.80 | 5.50 | 5.59 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Inventory turnover = Cost of sales, excluding amortization and impairment of acquired intangible assets ÷ Inventory
= 1,955,400 ÷ 804,200 = 2.43
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Biogen Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Receivables Turnover
Biogen Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Product, net | 11,379,800 | 10,886,800 | 10,354,700 | 9,817,900 | 9,188,500 | |
| Accounts receivable, net | 1,880,500 | 1,958,500 | 1,787,000 | 1,441,600 | 1,227,000 | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 6.05 | 5.56 | 5.79 | 6.81 | 7.49 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 5.88 | 5.90 | 5.22 | 6.42 | — | |
| AbbVie Inc. | 6.13 | 6.08 | 5.55 | 5.39 | — | |
| Amgen Inc. | 5.47 | 6.29 | 6.73 | 6.92 | — | |
| Bristol-Myers Squibb Co. | 3.89 | 4.66 | 4.43 | 4.69 | — | |
| Eli Lilly & Co. | 4.91 | 4.68 | 5.03 | 5.27 | — | |
| Gilead Sciences Inc. | 6.18 | 6.52 | 6.66 | 6.64 | 5.49 | |
| Illumina Inc. | 6.18 | 6.48 | 6.70 | 6.29 | — | |
| Johnson & Johnson | 5.67 | 5.79 | 5.67 | 6.14 | — | |
| Merck & Co. Inc. | 6.91 | 5.98 | 5.84 | 5.67 | 6.09 | |
| Pfizer Inc. | 5.93 | 6.68 | 6.39 | 6.42 | 5.97 | |
| Regeneron Pharmaceuticals Inc. | 2.30 | 2.38 | 2.42 | 2.49 | — | |
| Vertex Pharmaceuticals Inc. | 6.57 | 7.44 | 8.85 | 8.47 | — | |
| Zoetis Inc. | 5.76 | 5.62 | 5.32 | 5.35 | — | |
| Receivables Turnover, Sector | ||||||
| Pharmaceuticals & Biotechnology | 5.58 | 5.77 | 5.65 | 5.90 | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 7.39 | 7.49 | 7.32 | 7.59 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Receivables turnover = Product, net ÷ Accounts receivable, net
= 11,379,800 ÷ 1,880,500 = 6.05
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Biogen Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Payables Turnover
Biogen Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cost of sales, excluding amortization and impairment of acquired intangible assets | 1,955,400 | 1,816,300 | 1,630,000 | 1,478,700 | 1,240,400 | |
| Accounts payable | 530,800 | 370,500 | 395,500 | 279,800 | 267,400 | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.68 | 4.90 | 4.12 | 5.28 | 4.64 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Abbott Laboratories | 4.07 | 4.27 | 5.14 | 7.66 | — | |
| AbbVie Inc. | 5.12 | 4.99 | 4.78 | 4.15 | — | |
| Amgen Inc. | 3.18 | 3.40 | 3.01 | 4.54 | — | |
| Bristol-Myers Squibb Co. | 3.30 | 3.46 | 2.70 | 2.97 | — | |
| Eli Lilly & Co. | 3.36 | 4.55 | 4.30 | 4.19 | — | |
| Gilead Sciences Inc. | 6.56 | 6.14 | 5.37 | 3.53 | 3.40 | |
| Illumina Inc. | 7.22 | 5.61 | 5.79 | 5.31 | — | |
| Johnson & Johnson | 3.23 | 3.59 | 3.47 | 3.13 | — | |
| Merck & Co. Inc. | 3.78 | 4.07 | 4.12 | 4.95 | 5.90 | |
| Pfizer Inc. | 2.42 | 2.41 | 2.41 | 2.72 | 2.67 | |
| Regeneron Pharmaceuticals Inc. | 0.87 | 0.82 | 1.14 | 1.44 | — | |
| Vertex Pharmaceuticals Inc. | 6.25 | 3.69 | 3.72 | 3.42 | — | |
| Zoetis Inc. | 6.62 | 6.11 | 6.80 | 6.29 | — | |
| Payables Turnover, Sector | ||||||
| Pharmaceuticals & Biotechnology | 3.50 | 3.73 | 3.64 | 3.75 | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 5.78 | 5.99 | 5.81 | 5.96 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Payables turnover = Cost of sales, excluding amortization and impairment of acquired intangible assets ÷ Accounts payable
= 1,955,400 ÷ 530,800 = 3.68
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Biogen Inc.’s payables turnover ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019. |
Working Capital Turnover
Biogen Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 8,381,800 | 7,640,900 | 7,873,300 | 8,732,200 | 6,700,300 | |
| Less: Current liabilities | 4,863,800 | 3,295,200 | 3,368,200 | 3,419,900 | 2,577,700 | |
| Working capital | 3,518,000 | 4,345,700 | 4,505,100 | 5,312,300 | 4,122,600 | |
| Product, net | 11,379,800 | 10,886,800 | 10,354,700 | 9,817,900 | 9,188,500 | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 3.23 | 2.51 | 2.30 | 1.85 | 2.23 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Abbott Laboratories | 6.64 | 5.44 | 2.44 | 1.04 | — | |
| AbbVie Inc. | 0.98 | — | 6.16 | 4.00 | — | |
| Amgen Inc. | 3.96 | 0.93 | 0.54 | 0.63 | — | |
| Bristol-Myers Squibb Co. | 2.28 | 3.32 | 3.64 | 3.64 | — | |
| Eli Lilly & Co. | 11.54 | 2.84 | 4.90 | 5.16 | — | |
| Gilead Sciences Inc. | 1.08 | 0.86 | 1.27 | 2.67 | 2.16 | |
| Illumina Inc. | 0.94 | 1.24 | 1.23 | 1.49 | — | |
| Johnson & Johnson | 8.81 | 5.51 | 6.09 | 1.86 | — | |
| Merck & Co. Inc. | 8.90 | 11.53 | 6.52 | 2.97 | 3.74 | |
| Pfizer Inc. | — | 2.97 | 4.90 | 6.74 | 3.39 | |
| Regeneron Pharmaceuticals Inc. | 0.86 | 0.82 | 1.16 | 1.72 | — | |
| Vertex Pharmaceuticals Inc. | 1.19 | 1.12 | 1.35 | 1.64 | — | |
| Zoetis Inc. | 2.13 | 1.83 | 1.70 | 2.15 | — | |
| Working Capital Turnover, Sector | ||||||
| Pharmaceuticals & Biotechnology | 3.44 | 2.90 | 2.60 | 2.12 | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 5.24 | 5.18 | 4.28 | 3.70 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Working capital turnover = Product, net ÷ Working capital
= 11,379,800 ÷ 3,518,000 = 3.23
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Biogen Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
Biogen Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.43 | 1.95 | 1.81 | 1.48 | 1.39 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 150 | 187 | 202 | 247 | 263 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Abbott Laboratories | 119 | 109 | 107 | 98 | — | |
| AbbVie Inc. | 89 | 76 | 83 | 90 | — | |
| Amgen Inc. | 300 | 262 | 254 | 241 | — | |
| Bristol-Myers Squibb Co. | 194 | 67 | 70 | 92 | — | |
| Eli Lilly & Co. | 247 | 233 | 268 | 230 | — | |
| Gilead Sciences Inc. | 72 | 61 | 67 | 136 | 178 | |
| Illumina Inc. | 122 | 136 | 131 | 150 | — | |
| Johnson & Johnson | 119 | 116 | 126 | 137 | — | |
| Merck & Co. Inc. | 155 | 147 | 146 | 128 | 115 | |
| Pfizer Inc. | 296 | 244 | 246 | 201 | 284 | |
| Regeneron Pharmaceuticals Inc. | 1,426 | 2,334 | 1,309 | 749 | — | |
| Vertex Pharmaceuticals Inc. | 112 | 111 | 148 | 135 | — | |
| Zoetis Inc. | 258 | 266 | 293 | 329 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Pharmaceuticals & Biotechnology | 166 | 146 | 152 | 151 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 68 | 63 | 66 | 65 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.43 = 150
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Biogen Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019. |
Average Receivable Collection Period
Biogen Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 6.05 | 5.56 | 5.79 | 6.81 | 7.49 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 60 | 66 | 63 | 54 | 49 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Abbott Laboratories | 62 | 62 | 70 | 57 | — | |
| AbbVie Inc. | 60 | 60 | 66 | 68 | — | |
| Amgen Inc. | 67 | 58 | 54 | 53 | — | |
| Bristol-Myers Squibb Co. | 94 | 78 | 82 | 78 | — | |
| Eli Lilly & Co. | 74 | 78 | 73 | 69 | — | |
| Gilead Sciences Inc. | 59 | 56 | 55 | 55 | 66 | |
| Illumina Inc. | 59 | 56 | 55 | 58 | — | |
| Johnson & Johnson | 64 | 63 | 64 | 59 | — | |
| Merck & Co. Inc. | 53 | 61 | 63 | 64 | 60 | |
| Pfizer Inc. | 62 | 55 | 57 | 57 | 61 | |
| Regeneron Pharmaceuticals Inc. | 159 | 153 | 151 | 147 | — | |
| Vertex Pharmaceuticals Inc. | 56 | 49 | 41 | 43 | — | |
| Zoetis Inc. | 63 | 65 | 69 | 68 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Pharmaceuticals & Biotechnology | 65 | 63 | 65 | 62 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 49 | 49 | 50 | 48 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.05 = 60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Biogen Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Operating Cycle
Biogen Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 150 | 187 | 202 | 247 | 263 | |
| Average receivable collection period | 60 | 66 | 63 | 54 | 49 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 210 | 253 | 265 | 301 | 312 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Abbott Laboratories | 181 | 171 | 177 | 155 | — | |
| AbbVie Inc. | 149 | 136 | 149 | 158 | — | |
| Amgen Inc. | 367 | 320 | 308 | 294 | — | |
| Bristol-Myers Squibb Co. | 288 | 145 | 152 | 170 | — | |
| Eli Lilly & Co. | 321 | 311 | 341 | 299 | — | |
| Gilead Sciences Inc. | 131 | 117 | 122 | 191 | 244 | |
| Illumina Inc. | 181 | 192 | 186 | 208 | — | |
| Johnson & Johnson | 183 | 179 | 190 | 196 | — | |
| Merck & Co. Inc. | 208 | 208 | 209 | 192 | 175 | |
| Pfizer Inc. | 358 | 299 | 303 | 258 | 345 | |
| Regeneron Pharmaceuticals Inc. | 1,585 | 2,487 | 1,460 | 896 | — | |
| Vertex Pharmaceuticals Inc. | 168 | 160 | 189 | 178 | — | |
| Zoetis Inc. | 321 | 331 | 362 | 397 | — | |
| Operating Cycle, Sector | ||||||
| Pharmaceuticals & Biotechnology | 231 | 209 | 217 | 213 | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 117 | 112 | 116 | 113 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 150 + 60 = 210
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Biogen Inc.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019. |
Average Payables Payment Period
Biogen Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.68 | 4.90 | 4.12 | 5.28 | 4.64 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 99 | 74 | 89 | 69 | 79 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Abbott Laboratories | 90 | 85 | 71 | 48 | — | |
| AbbVie Inc. | 71 | 73 | 76 | 88 | — | |
| Amgen Inc. | 115 | 107 | 121 | 80 | — | |
| Bristol-Myers Squibb Co. | 110 | 105 | 135 | 123 | — | |
| Eli Lilly & Co. | 109 | 80 | 85 | 87 | — | |
| Gilead Sciences Inc. | 56 | 59 | 68 | 103 | 107 | |
| Illumina Inc. | 51 | 65 | 63 | 69 | — | |
| Johnson & Johnson | 113 | 102 | 105 | 116 | — | |
| Merck & Co. Inc. | 97 | 90 | 89 | 74 | 62 | |
| Pfizer Inc. | 151 | 152 | 151 | 134 | 137 | |
| Regeneron Pharmaceuticals Inc. | 421 | 442 | 321 | 253 | — | |
| Vertex Pharmaceuticals Inc. | 58 | 99 | 98 | 107 | — | |
| Zoetis Inc. | 55 | 60 | 54 | 58 | — | |
| Average Payables Payment Period, Sector | ||||||
| Pharmaceuticals & Biotechnology | 104 | 98 | 100 | 97 | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 63 | 61 | 63 | 61 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.68 = 99
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Biogen Inc.’s number of days of payables outstanding decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level. |
Cash Conversion Cycle
Biogen Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 150 | 187 | 202 | 247 | 263 | |
| Average receivable collection period | 60 | 66 | 63 | 54 | 49 | |
| Average payables payment period | 99 | 74 | 89 | 69 | 79 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 111 | 179 | 176 | 232 | 233 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Abbott Laboratories | 91 | 86 | 106 | 107 | — | |
| AbbVie Inc. | 78 | 63 | 73 | 70 | — | |
| Amgen Inc. | 252 | 213 | 187 | 214 | — | |
| Bristol-Myers Squibb Co. | 178 | 40 | 17 | 47 | — | |
| Eli Lilly & Co. | 212 | 231 | 256 | 212 | — | |
| Gilead Sciences Inc. | 75 | 58 | 54 | 88 | 137 | |
| Illumina Inc. | 130 | 127 | 123 | 139 | — | |
| Johnson & Johnson | 70 | 77 | 85 | 80 | — | |
| Merck & Co. Inc. | 111 | 118 | 120 | 118 | 113 | |
| Pfizer Inc. | 207 | 147 | 152 | 124 | 208 | |
| Regeneron Pharmaceuticals Inc. | 1,164 | 2,045 | 1,139 | 643 | — | |
| Vertex Pharmaceuticals Inc. | 110 | 61 | 91 | 71 | — | |
| Zoetis Inc. | 266 | 271 | 308 | 339 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Pharmaceuticals & Biotechnology | 127 | 111 | 117 | 116 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 54 | 51 | 53 | 52 | — | |
Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-06), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-02), 10-K (filing date: 2016-02-03).
1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 150 + 60 – 99 = 111
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Biogen Inc.’s cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |