Analysis of Geographic Areas
Moderna Inc. operates in 3 regions: United States; Europe; and Rest of world.
Area Asset Turnover
Moderna Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 1.21 | 4.06 | 5.88 | 2.57 | 0.27 |
| Europe | 10.75 | 9.54 | 37.82 | — | — |
| Rest of world | 13.89 | 197.24 | 544.80 | — | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The asset turnover ratios across all reported geographic regions exhibit a distinct peak in 2021, followed by a significant downward trajectory through 2023. This pattern indicates a period of exceptional revenue generation relative to the asset base during 2021, followed by a substantial contraction in turnover efficiency as market conditions normalized.
- United States Asset Turnover
- A rapid escalation is observed in the United States, with the ratio increasing from 0.27 in 2019 to a peak of 5.88 in 2021. This was followed by a steady decline to 4.06 in 2022 and a further reduction to 1.21 by the end of 2023, reflecting a diminished capacity to generate revenue from the domestic asset base.
- European Asset Turnover
- In Europe, the turnover ratio was high at 37.82 in 2021 before experiencing a sharp decline to 9.54 in 2022. A slight recovery occurred in 2023, with the ratio rising to 10.75, suggesting a stabilization of asset efficiency at a significantly lower level than the initial peak.
- Rest of World Asset Turnover
- The most extreme volatility is evident in the Rest of World segment, which recorded an exceptionally high ratio of 544.80 in 2021. This figure declined precipitously to 197.24 in 2022 and further collapsed to 13.89 in 2023. The magnitude of this decrease suggests that early revenue surges in these markets were achieved with minimal localized asset investment, followed by a rapid normalization of the asset-to-revenue relationship.
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Area Asset Turnover: United States
Moderna Inc.; United States; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 1,895) | 5,150) | 6,177) | 764) | 55) |
| Property, plant and equipment, including financing right-of-use assets | 1,560) | 1,267) | 1,050) | 297) | 201) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.21 | 4.06 | 5.88 | 2.57 | 0.27 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, including financing right-of-use assets
= 1,895 ÷ 1,560 = 1.21
The financial performance in the United States market between 2019 and 2023 is characterized by a period of exponential revenue growth followed by a significant contraction, occurring alongside a continuous expansion of the fixed asset base.
- Revenue Trajectory
- Revenue experienced a dramatic increase from US$ 55 million in 2019 to a peak of US$ 6,177 million in 2021. Subsequently, a sharp downward trend emerged, with revenues falling to US$ 5,150 million in 2022 and further decreasing to US$ 1,895 million by the end of 2023.
- Fixed Asset Investment
- Property, plant, and equipment, including financing right-of-use assets, demonstrated consistent year-over-year growth throughout the period. The asset base increased from US$ 201 million in 2019 to US$ 1,560 million in 2023, indicating a sustained investment in infrastructure that continued even as revenues began to decline.
- Area Asset Turnover Analysis
- The area asset turnover ratio followed a parabolic trend, reflecting the relationship between rapid scaling and subsequent normalization. The ratio rose from 0.27 in 2019 to a peak of 5.88 in 2021, signaling a period of maximum asset efficiency. However, the ratio declined to 4.06 in 2022 and fell sharply to 1.21 in 2023.
The divergence between the increasing asset base and the diminishing revenue stream has led to a substantial decrease in asset utilization efficiency. The contraction of the turnover ratio suggests that the current capacity of property, plant, and equipment exceeds the current revenue-generating requirements of the U.S. market compared to the efficiency levels observed in 2021.
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Area Asset Turnover: Europe
Moderna Inc.; Europe; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 1,355) | 6,815) | 6,846) | 33) | 5) |
| Property, plant and equipment, including financing right-of-use assets | 126) | 714) | 181) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 10.75 | 9.54 | 37.82 | — | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, including financing right-of-use assets
= 1,355 ÷ 126 = 10.75
The financial trajectory in Europe is characterized by an extreme period of expansion followed by a significant contraction, reflecting the volatile demand cycle associated with the company's primary product offerings during this period.
- Revenue Performance
- A period of exponential growth occurred between 2019 and 2021, with revenue increasing from 5 million US$ to 6.85 billion US$. This peak was sustained into 2022, with revenue remaining nearly flat at 6.82 billion US$. However, a sharp decline was observed in 2023, where revenue fell to 1.36 billion US$, representing an approximately 80% decrease from the previous year.
- Property, Plant and Equipment (PP&E)
- Fixed asset investment showed significant volatility. PP&E grew substantially from 181 million US$ in 2021 to 714 million US$ in 2022, indicating a period of aggressive infrastructure expansion. This trend reversed abruptly in 2023, with PP&E decreasing to 126 million US$, suggesting a large-scale divestment or impairment of physical assets in the region.
- Area Asset Turnover Ratio
- The area asset turnover ratio experienced a dramatic decline from its 2021 peak of 37.82 to 9.54 in 2022. This decline was driven by the simultaneous combination of stagnating revenue and a nearly fourfold increase in fixed assets. In 2023, the ratio saw a marginal recovery to 10.75; this improvement was not the result of revenue growth, but rather the consequence of the sharp reduction in the asset base, which offset the decline in top-line performance.
Overall, the European region shifted from a high-efficiency, low-asset model in 2021 to a capital-intensive phase in 2022, before returning to a leaner asset structure in 2023 amidst declining revenues.
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Area Asset Turnover: Rest of world
Moderna Inc.; Rest of world; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 3,598) | 7,298) | 5,448) | 6) | —) |
| Property, plant and equipment, including financing right-of-use assets | 259) | 37) | 10) | —) | —) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 13.89 | 197.24 | 544.80 | — | — |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, including financing right-of-use assets
= 3,598 ÷ 259 = 13.89
The financial performance of the Rest of World geographic segment is characterized by a period of extreme volatility in revenue coupled with a rapid expansion of the fixed asset base, resulting in a significant decline in asset efficiency over the analyzed period.
- Revenue Trends
- Revenue in the Rest of World region saw an exponential increase from 6 million US dollars in 2020 to a peak of 7,298 million US dollars in 2022. However, a substantial contraction occurred in 2023, with revenue falling to 3,598 million US dollars, representing a decline of approximately 50.7% from the previous year's peak.
- Fixed Asset Expansion
- Investment in property, plant, and equipment, including financing right-of-use assets, grew aggressively. From a baseline of 10 million US dollars in 2021, assets increased to 37 million US dollars in 2022, followed by a sharp surge to 259 million US dollars by December 31, 2023. This indicates a strategic shift toward increasing physical infrastructure in the region despite the concurrent decline in revenue.
- Area Asset Turnover Interpretation
- The area asset turnover ratio experienced a severe downward trajectory, falling from a high of 544.80 in 2021 to 13.89 in 2023. This collapse is the result of two simultaneous pressures: the reduction in top-line revenue and the rapid accumulation of fixed assets. The initial high ratio suggests a highly asset-light operational model during the early growth phase, while the subsequent decline indicates a transition toward a more asset-intensive structure where revenue generation has not yet scaled to match the expanded capacity.
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Revenue
Moderna Inc., revenue by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 1,895) | 5,150) | 6,177) | 764) | 55) |
| Europe | 1,355) | 6,815) | 6,846) | 33) | 5) |
| Rest of world | 3,598) | 7,298) | 5,448) | 6) | —) |
| Total | 6,848) | 19,263) | 18,471) | 803) | 60) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total revenue exhibited a period of exponential growth between 2019 and 2021, escalating from 60 million to over 18.4 billion. A peak was reached in 2022 at approximately 19.3 billion before experiencing a substantial contraction to 6.8 billion in 2023.
- United States Revenue Trends
- Revenue in the United States grew sharply from 55 million in 2019 to a peak of 6.2 billion in 2021. Following this peak, a downward trajectory was observed, with revenue falling to 5.2 billion in 2022 and further declining to 1.9 billion by the end of 2023.
- European Revenue Trends
- Europe demonstrated the most dramatic relative increase between 2020 and 2021, surging from 33 million to nearly 6.8 billion. Revenue levels remained stable through 2022 before contracting sharply in 2023 to 1.4 billion.
- Rest of World Revenue Trends
- The Rest of World segment showed consistent growth through 2022, reaching a peak of 7.3 billion. Although this segment also declined in 2023 to 3.6 billion, it represents the most resilient geographic area and ended the period as the largest contributor to total revenue.
- Geographic Revenue Distribution
- A significant shift in revenue concentration occurred over the five-year period. While the United States was the dominant source of revenue in 2019, the Rest of World segment became the primary revenue driver by 2022. By 2023, despite the overall decline in total revenue, the Rest of World region accounted for more than 50% of the total revenue, indicating a shift in the company's primary market reliance.
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Property, plant and equipment, including financing right-of-use assets
Moderna Inc., property, plant and equipment, including financing right-of-use assets by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 1,560) | 1,267) | 1,050) | 297) | 201) |
| Europe | 126) | 714) | 181) | —) | —) |
| Rest of world | 259) | 37) | 10) | —) | —) |
| Total | 1,945) | 2,018) | 1,241) | 297) | 201) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The total value of property, plant and equipment, including financing right-of-use assets, exhibited a period of rapid expansion between 2019 and 2022, followed by a slight contraction in 2023. Total assets grew from 201 million US dollars in 2019 to a peak of 2,018 million US dollars in 2022, before settling at 1,945 million US dollars at the end of 2023.
- United States Investment Trends
- The United States remains the primary driver of asset growth, demonstrating a consistent upward trajectory throughout the analyzed period. Assets in this region increased from 201 million US dollars in 2019 to 1,560 million US dollars in 2023. This steady climb indicates a sustained commitment to expanding domestic infrastructure and operational capacity.
- European Asset Volatility
- Assets in Europe first appeared in the records in 2021 at 181 million US dollars and saw a significant surge to 714 million US dollars by 2022. However, a sharp decline occurred in 2023, with the value falling to 126 million US dollars. This volatility suggests a substantial restructuring of European operations or the expiration of significant right-of-use lease agreements.
- Global Expansion (Rest of World)
- The "Rest of world" category shows an accelerating growth pattern. Initial values in 2021 were nominal at 10 million US dollars, increasing slightly to 37 million US dollars in 2022, and then expanding rapidly to 259 million US dollars in 2023. This trend reflects an increasing strategic emphasis on establishing a physical presence in international markets outside of North America and Europe.
- Geographic Asset Concentration
- By the end of 2023, there is a clear concentration of assets within the United States, which accounts for approximately 80% of the total property, plant and equipment. The shift in 2023 highlights a divergent strategy where domestic growth continued while European holdings were significantly reduced and other global regions were expanded.
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