Analysis of Long-term (Investment) Activity Ratios
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)
Moderna Inc., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed a considerable increase from 0.67 in 2020 to 14.24 in 2021, indicating a significant improvement in the efficiency with which fixed assets were utilized to generate revenue. However, this ratio experienced a decline in subsequent years, dropping to 9.14 in 2022 and further to 3.43 in 2023. This suggests a reduced efficiency or possible asset base growth not matched by proportional revenue increases during these years.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- When including operating leases and right-of-use assets, the turnover ratio follows a similar pattern to the net fixed asset turnover alone. Starting at 0.52 in 2020, it sharply increased to 12.78 in 2021, decreased to 8.62 in 2022, and then declined further to 2.51 in 2023. The generally lower values compared to the net fixed asset turnover indicate the inclusion of leases adds to the asset base, somewhat diluting the turnover ratio.
- Total Asset Turnover
- The total asset turnover ratio exhibited a significant growth from 0.03 in 2020 to 0.72 in 2021, sustaining a similar level at 0.71 in 2022, then declining to 0.36 in 2023. This pattern mirrors the trends observed in fixed asset turnover, showing initial improvement in overall asset utilization efficiency followed by a decrease in the most recent year, which may point to changes in operational scale or asset management.
- Equity Turnover
- The equity turnover ratio increased markedly from 0.08 in 2020 to 1.25 in 2021, indicating a stronger capacity to generate revenue relative to shareholder equity. This ratio then decreased to 0.96 in 2022 and 0.48 in 2023. Such a decline implies that although the company initially enhanced its revenue generation against equity invested, this efficiency has diminished in the last two years.
Net Fixed Asset Turnover
Moderna Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Property, plant and equipment, net | 1,945) | 2,018) | 1,241) | 297) | 201) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 3.43 | 9.14 | 14.24 | 0.67 | 0.00 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 10.89 | 11.76 | 11.00 | 8.73 | — | |
| Amgen Inc. | 4.53 | 4.57 | 4.69 | 4.96 | — | |
| Bristol-Myers Squibb Co. | 6.77 | 7.38 | 7.67 | 7.22 | — | |
| Danaher Corp. | 5.25 | 7.96 | 7.77 | 6.83 | — | |
| Eli Lilly & Co. | 2.64 | 2.81 | 3.15 | 2.83 | — | |
| Gilead Sciences Inc. | 5.07 | 4.93 | 5.27 | 4.90 | — | |
| Johnson & Johnson | 4.28 | 4.79 | 4.95 | 4.40 | — | |
| Merck & Co. Inc. | 2.61 | 2.77 | 2.53 | 2.67 | — | |
| Pfizer Inc. | 3.14 | 6.22 | 5.52 | 3.07 | — | |
| Regeneron Pharmaceuticals Inc. | 3.16 | 3.23 | 4.62 | 2.64 | — | |
| Thermo Fisher Scientific Inc. | 4.54 | 4.84 | 4.71 | 5.45 | — | |
| Vertex Pharmaceuticals Inc. | 8.51 | 8.06 | 6.92 | 6.47 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.12 | 4.98 | 4.98 | 4.31 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 8.80 | 9.32 | 9.09 | 8.34 | — | |
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
Net fixed asset turnover = Net product sales ÷ Property, plant and equipment, net
= 6,671 ÷ 1,945 = 3.43
2 Click competitor name to see calculations.
- Net product sales
- Net product sales exhibited a dramatic increase from 2020 to 2021, rising sharply from 200 million US dollars to 17,675 million US dollars. This peak was maintained into 2022 with a slight further increase to 18,435 million US dollars. However, in 2023, net product sales declined significantly to 6,671 million US dollars, indicating a substantial reduction following the previous years' peak performance.
- Property, plant and equipment, net
- The net value of property, plant, and equipment showed continuous growth over the five-year period. Starting at 201 million US dollars in 2019, it increased progressively each year to reach 1,945 million US dollars in 2023. This steady upward trend suggests ongoing investment and expansion in fixed assets during these years.
- Net fixed asset turnover
- The net fixed asset turnover ratio displayed significant volatility. It was 0.67 in 2020 and then surged to a peak of 14.24 in 2021, coinciding with the sharp rise in net product sales. Afterward, it decreased to 9.14 in 2022 and further declined to 3.43 in 2023. This pattern reflects an initially highly efficient use of fixed assets relative to sales in 2021, followed by progressively less efficient utilization in subsequent years.
- Overall insights
- The data reveals a period of rapid revenue growth coinciding with increased capital investment, particularly notable between 2020 and 2022. The subsequent sales decline in 2023 contrasts with continued high levels of fixed assets, leading to a reduction in asset turnover efficiency. This may suggest challenges in sustaining sales growth relative to the expanded capital base or changing market conditions impacting product demand.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Moderna Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Property, plant and equipment, net | 1,945) | 2,018) | 1,241) | 297) | 201) | |
| Right-of-use assets, operating leases | 713) | 121) | 142) | 90) | 86) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 2,658) | 2,139) | 1,383) | 387) | 288) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.51 | 8.62 | 12.78 | 0.52 | 0.00 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | 9.47 | 10.24 | 9.57 | 7.46 | — | |
| Amgen Inc. | 4.08 | 4.13 | 4.23 | 4.58 | — | |
| Bristol-Myers Squibb Co. | 5.60 | 6.18 | 6.66 | 6.30 | — | |
| Danaher Corp. | 4.26 | 6.35 | 6.10 | 5.30 | — | |
| Eli Lilly & Co. | 2.45 | 2.63 | 2.93 | 2.63 | — | |
| Gilead Sciences Inc. | 4.57 | 4.51 | 4.77 | 4.34 | — | |
| Johnson & Johnson | 4.07 | 4.54 | 4.72 | 4.18 | — | |
| Merck & Co. Inc. | 2.45 | 2.60 | 2.33 | 2.43 | — | |
| Pfizer Inc. | 2.72 | 5.25 | 4.64 | 2.79 | — | |
| Regeneron Pharmaceuticals Inc. | 3.11 | 3.17 | 4.52 | 2.58 | — | |
| Thermo Fisher Scientific Inc. | 3.89 | 4.13 | 3.98 | 4.82 | — | |
| Vertex Pharmaceuticals Inc. | 6.79 | 6.13 | 5.32 | 4.83 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.71 | 4.48 | 4.45 | 3.91 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 7.17 | 7.48 | 7.17 | 6.51 | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net product sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 6,671 ÷ 2,658 = 2.51
2 Click competitor name to see calculations.
The financial data reveals significant shifts in key performance indicators over the examined periods.
- Net Product Sales
- There was a remarkable surge in net product sales from 2020 to 2021, increasing from 200 million US dollars to 17,675 million US dollars. This peak persisted into 2022 with a slight increase to 18,435 million US dollars, followed by a substantial decline in 2023, dropping to 6,671 million US dollars. The pattern suggests a period of rapid growth followed by a noteworthy contraction in sales revenue.
- Property, Plant and Equipment, Net
- The value of net property, plant, and equipment increased steadily each year. Beginning at 288 million US dollars in 2019, the figure rose to 387 million in 2020, then surged to 1,383 million in 2021, continuing upward to 2,139 million in 2022 and reaching 2,658 million in 2023. This consistent upward trend indicates ongoing investment and expansion of fixed assets.
- Net Fixed Asset Turnover
- Net fixed asset turnover exhibited substantial variability. Starting at 0.52 in 2020, it peaked dramatically at 12.78 in 2021, then declined to 8.62 in 2022, followed by a sharp decrease to 2.51 in 2023. This fluctuation reflects changes in asset utilization efficiency, correlating inversely with the growth in fixed assets and changes in sales volume.
Overall, the data indicates a phase of rapid sales growth and asset acquisition culminating in 2021 and 2022, after which a significant reduction in sales and asset efficiency was observed in 2023. The rising property and equipment values suggest ongoing capacity expansion, but the declining turnover ratio in the final period points to less efficient asset usage relative to sales during that year.
Total Asset Turnover
Moderna Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Total assets | 18,426) | 25,858) | 24,669) | 7,337) | 1,589) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.36 | 0.71 | 0.72 | 0.03 | 0.00 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | 0.40 | 0.42 | 0.38 | 0.30 | — | |
| Amgen Inc. | 0.28 | 0.38 | 0.40 | 0.39 | — | |
| Bristol-Myers Squibb Co. | 0.47 | 0.48 | 0.42 | 0.36 | — | |
| Danaher Corp. | 0.28 | 0.37 | 0.35 | 0.29 | — | |
| Eli Lilly & Co. | 0.53 | 0.58 | 0.58 | 0.53 | — | |
| Gilead Sciences Inc. | 0.43 | 0.43 | 0.40 | 0.36 | — | |
| Johnson & Johnson | 0.51 | 0.51 | 0.52 | 0.47 | — | |
| Merck & Co. Inc. | 0.56 | 0.54 | 0.46 | 0.52 | — | |
| Pfizer Inc. | 0.26 | 0.51 | 0.45 | 0.28 | — | |
| Regeneron Pharmaceuticals Inc. | 0.40 | 0.42 | 0.63 | 0.50 | — | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.46 | 0.41 | 0.47 | — | |
| Vertex Pharmaceuticals Inc. | 0.43 | 0.49 | 0.56 | 0.53 | — | |
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.40 | 0.47 | 0.45 | 0.39 | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.73 | 0.75 | 0.70 | 0.64 | — | |
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
Total asset turnover = Net product sales ÷ Total assets
= 6,671 ÷ 18,426 = 0.36
2 Click competitor name to see calculations.
- Net Product Sales
- Net product sales were not reported for 2019. In 2020, sales reached $200 million, followed by a significant surge to $17,675 million in 2021. This growth continued modestly into 2022 with sales of $18,435 million, before experiencing a notable decline to $6,671 million in 2023. The trend indicates a rapid expansion phase peaking in 2022, succeeded by a substantial contraction in sales by 2023.
- Total Assets
- Total assets increased markedly from $1,589 million in 2019 to $7,337 million in 2020. This upward trajectory accelerated further with assets reaching $24,669 million in 2021 and slightly increasing again to $25,858 million in 2022. However, by 2023, total assets decreased to $18,426 million, indicating a reduction in asset base following several years of growth.
- Total Asset Turnover Ratio
- The total asset turnover ratio was not available for 2019. In 2020, turnover was very low at 0.03, reflecting limited sales relative to asset size. The ratio improved significantly in 2021 to 0.72 and remained stable at 0.71 in 2022, indicating enhanced efficiency in utilizing assets to generate sales. In 2023, the turnover declined sharply to 0.36, reflecting reduced sales relative to assets, consistent with the decline in net product sales.
Equity Turnover
Moderna Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net product sales | 6,671) | 18,435) | 17,675) | 200) | —) | |
| Stockholders’ equity | 13,854) | 19,123) | 14,145) | 2,561) | 1,175) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.48 | 0.96 | 1.25 | 0.08 | 0.00 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.24 | 3.36 | 3.65 | 3.50 | — | |
| Amgen Inc. | 4.32 | 6.77 | 3.63 | 2.58 | — | |
| Bristol-Myers Squibb Co. | 1.53 | 1.49 | 1.29 | 1.12 | — | |
| Danaher Corp. | 0.45 | 0.63 | 0.65 | 0.56 | — | |
| Eli Lilly & Co. | 3.17 | 2.68 | 3.15 | 4.35 | — | |
| Gilead Sciences Inc. | 1.18 | 1.27 | 1.28 | 1.34 | — | |
| Johnson & Johnson | 1.24 | 1.24 | 1.27 | 1.31 | — | |
| Merck & Co. Inc. | 1.60 | 1.29 | 1.28 | 1.90 | — | |
| Pfizer Inc. | 0.67 | 1.06 | 1.06 | 0.67 | — | |
| Regeneron Pharmaceuticals Inc. | 0.51 | 0.54 | 0.86 | 0.77 | — | |
| Thermo Fisher Scientific Inc. | 0.92 | 1.02 | 0.96 | 0.93 | — | |
| Vertex Pharmaceuticals Inc. | 0.56 | 0.64 | 0.75 | 0.71 | — | |
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.15 | 1.24 | 1.27 | 1.22 | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 2.00 | 1.97 | 1.91 | 1.89 | — | |
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
Equity turnover = Net product sales ÷ Stockholders’ equity
= 6,671 ÷ 13,854 = 0.48
2 Click competitor name to see calculations.
- Net Product Sales
- The net product sales demonstrated a sharp increase from 2020 to 2021, rising from US$ 200 million to US$ 17,675 million. This was followed by a modest increase in 2022 to US$ 18,435 million, before declining significantly to US$ 6,671 million in 2023. The trend indicates a peak in revenues in 2022, with a notable contraction in the subsequent year.
- Stockholders’ Equity
- Stockholders’ equity exhibited substantial growth from 2019 to 2022, increasing from US$ 1,175 million to US$ 19,123 million. However, in 2023, equity decreased to US$ 13,854 million. The equity values suggest a period of rapid capitalization and accumulation of retained earnings until 2022, followed by a reduction in 2023 that may reflect dividend payouts, share repurchases, or losses.
- Equity Turnover Ratio
- The equity turnover ratio rose dramatically from 0.08 in 2020 to 1.25 in 2021, indicating improved efficiency in generating sales from equity. This ratio then declined to 0.96 in 2022 and further dropped to 0.48 in 2023. The decrease suggests a diminishing ability to utilize equity for sales generation in the later years, possibly linked to the sharp fall in net product sales in 2023.