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).
The analysis of long-term activity ratios reveals a significant volatility cycle characterized by a sharp peak in asset efficiency during 2021, followed by a consistent downward trend through 2023. This trajectory indicates a period of rapid revenue acceleration relative to the investment base, which has since decelerated.
- Fixed Asset Utilization
- Net fixed asset turnover experienced a dramatic increase from 0.67 in 2020 to a peak of 14.24 in 2021, representing a period of exceptional efficiency in generating revenue from fixed assets. This metric subsequently declined to 9.14 in 2022 and further to 3.43 in 2023. A similar pattern is observed when including operating leases, where the ratio peaked at 12.78 in 2021 before falling to 2.51 by the end of 2023, suggesting a marked reduction in the revenue-generating capacity of the physical infrastructure.
- Overall Asset Efficiency
- Total asset turnover transitioned from negligible activity in 2020 (0.03) to a peak of 0.72 in 2021. The ratio remained relatively stable in 2022 at 0.71 before decreasing significantly to 0.36 in 2023. This decline indicates that the total asset base is producing substantially less revenue per unit of investment than in the previous two years.
- Equity Turnover
- Equity turnover followed a comparable trajectory, rising sharply from 0.08 in 2020 to 1.25 in 2021. A steady decline followed, with values dropping to 0.96 in 2022 and 0.48 in 2023. This trend suggests that the company's ability to generate sales from its equity investment peaked in 2021 and has since diminished by more than half over the subsequent two-year period.
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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 | — | — | |
| Amgen Inc. | 4.53 | 4.57 | 4.69 | — | — | |
| Bristol-Myers Squibb Co. | 6.77 | 7.38 | 7.67 | — | — | |
| Danaher Corp. | 5.25 | 7.96 | 7.77 | — | — | |
| Eli Lilly & Co. | 2.64 | 2.81 | 3.15 | — | — | |
| Gilead Sciences Inc. | 5.07 | 4.93 | 5.27 | — | — | |
| Johnson & Johnson | 4.28 | 4.79 | 4.95 | — | — | |
| Merck & Co. Inc. | 2.61 | 2.77 | 2.53 | — | — | |
| Pfizer Inc. | 3.14 | 6.22 | 5.52 | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.16 | 3.23 | 4.62 | — | — | |
| Thermo Fisher Scientific Inc. | 4.54 | 4.84 | 4.71 | — | — | |
| Vertex Pharmaceuticals Inc. | 8.51 | 8.06 | 6.92 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.12 | 4.98 | 4.98 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | 7.22 | 7.88 | 7.74 | — | — | |
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.
An analysis of the long-term activity ratios reveals a period of extreme volatility in asset utilization and revenue generation between 2020 and 2023. The company transitioned from a low-revenue state to a high-growth phase with massive capital investment, followed by a sharp decline in efficiency as sales contracted while the fixed asset base remained elevated.
- Net Product Sales Trends
- Revenue exhibited an exponential increase between 2020 and 2021, rising from 200 million to 17.675 billion. This growth peaked in 2022 at 18.435 billion before experiencing a significant contraction in 2023, falling to 6.671 billion.
- Fixed Asset Investment
- Net property, plant, and equipment grew consistently from 201 million in 2019 to a peak of 2.018 billion in 2022. This represents a substantial expansion of the company's physical infrastructure to support increased production capacity. A slight decrease to 1.945 billion was noted in 2023, indicating that the asset base remained largely intact despite the drop in sales.
- Net Fixed Asset Turnover Efficiency
- The turnover ratio peaked in 2021 at 14.24, indicating an exceptionally high rate of revenue generation relative to the fixed assets employed during the initial surge in demand. However, a downward trend followed, with the ratio falling to 9.14 in 2022 and further declining to 3.43 in 2023. This trend suggests a decrease in asset productivity and potential overcapacity, as the revenue generated per dollar of net fixed assets diminished significantly.
The convergence of these trends indicates that the aggressive expansion of fixed assets between 2019 and 2022 was highly effective during the peak demand period but led to diminished efficiency as sales normalized in 2023. The current asset turnover reflects a mismatch between the scaled-up production capacity and the reduced revenue levels.
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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 | — | — | |
| Amgen Inc. | 4.08 | 4.13 | 4.23 | — | — | |
| Bristol-Myers Squibb Co. | 5.60 | 6.18 | 6.66 | — | — | |
| Danaher Corp. | 4.26 | 6.35 | 6.10 | — | — | |
| Eli Lilly & Co. | 2.45 | 2.63 | 2.93 | — | — | |
| Gilead Sciences Inc. | 4.57 | 4.51 | 4.77 | — | — | |
| Johnson & Johnson | 4.07 | 4.54 | 4.72 | — | — | |
| Merck & Co. Inc. | 2.45 | 2.60 | 2.33 | — | — | |
| Pfizer Inc. | 2.72 | 5.25 | 4.64 | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.11 | 3.17 | 4.52 | — | — | |
| Thermo Fisher Scientific Inc. | 3.89 | 4.13 | 3.98 | — | — | |
| Vertex Pharmaceuticals Inc. | 6.79 | 6.13 | 5.32 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.71 | 4.48 | 4.45 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | 6.36 | 6.90 | 6.75 | — | — | |
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 analysis of investment activity indicates a period of extreme volatility in asset efficiency, characterized by a rapid escalation in revenue generation followed by a significant contraction, occurring against a backdrop of continuous capital investment.
- Net Product Sales Trends
- Sales experienced exponential growth between 2020 and 2021, rising from US$ 200 million to US$ 17,675 million. Revenue peaked in 2022 at US$ 18,435 million before declining sharply to US$ 6,671 million in 2023.
- Fixed Asset Accumulation
- Property, plant, and equipment, including right-of-use assets, demonstrated a consistent upward trajectory. Net fixed assets grew from US$ 288 million in 2019 to US$ 2,658 million in 2023, representing a steady and uninterrupted expansion of the long-term infrastructure.
- Net Fixed Asset Turnover Analysis
- The turnover ratio reflects a dramatic peak in 2021 at 12.78, indicating an exceptional surge in the efficiency of fixed assets to generate sales. However, a sustained downward trend followed, with the ratio falling to 8.62 in 2022 and contracting further to 2.51 by the end of 2023. This decline is a result of the simultaneous occurrence of decreasing net sales and increasing investment in fixed assets, which indicates that the company's asset base is currently underutilized relative to its peak performance period.
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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 | — | — | |
| Amgen Inc. | 0.28 | 0.38 | 0.40 | — | — | |
| Bristol-Myers Squibb Co. | 0.47 | 0.48 | 0.42 | — | — | |
| Danaher Corp. | 0.28 | 0.37 | 0.35 | — | — | |
| Eli Lilly & Co. | 0.53 | 0.58 | 0.58 | — | — | |
| Gilead Sciences Inc. | 0.43 | 0.43 | 0.40 | — | — | |
| Johnson & Johnson | 0.51 | 0.51 | 0.52 | — | — | |
| Merck & Co. Inc. | 0.56 | 0.54 | 0.46 | — | — | |
| Pfizer Inc. | 0.26 | 0.51 | 0.45 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.40 | 0.42 | 0.63 | — | — | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.46 | 0.41 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.43 | 0.49 | 0.56 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.40 | 0.47 | 0.45 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Health Care | 0.63 | 0.66 | 0.62 | — | — | |
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.
The financial trajectory between 2019 and 2023 is characterized by a period of rapid commercial expansion followed by a significant contraction in both revenue and asset utilization. Net product sales experienced an exponential increase from 200 million USD in 2020 to a peak of 18.4 billion USD in 2022, before declining to 6.7 billion USD in 2023. This volatility in revenue is mirrored by the scale of the asset base, which expanded from 1.6 billion USD in 2019 to a peak of 25.9 billion USD in 2022, followed by a reduction to 18.4 billion USD in 2023.
- Total Asset Turnover Volatility
- The total asset turnover ratio demonstrates extreme fluctuations, reflecting a shift from a pre-commercial state to a high-intensity operational phase. The ratio rose from 0.03 in 2020 to 0.72 in 2021, indicating a sudden and massive increase in the ability to generate sales from the asset base.
- Peak Operational Efficiency
- Stability in asset utilization was observed between 2021 and 2022, with the ratio maintaining a level of 0.72 and 0.71 respectively. During this window, revenue growth remained closely aligned with the expansion of total assets, suggesting an optimized synchronization between capacity and market demand.
- Efficiency Contraction
- A sharp decline in the total asset turnover ratio to 0.36 occurred in 2023. This decrease indicates that net product sales fell more precipitously than the company was able to reduce its asset base, resulting in a diminished return on invested assets and lower overall operational efficiency.
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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 | — | — | |
| Amgen Inc. | 4.32 | 6.77 | 3.63 | — | — | |
| Bristol-Myers Squibb Co. | 1.53 | 1.49 | 1.29 | — | — | |
| Danaher Corp. | 0.45 | 0.63 | 0.65 | — | — | |
| Eli Lilly & Co. | 3.17 | 2.68 | 3.15 | — | — | |
| Gilead Sciences Inc. | 1.18 | 1.27 | 1.28 | — | — | |
| Johnson & Johnson | 1.24 | 1.24 | 1.27 | — | — | |
| Merck & Co. Inc. | 1.60 | 1.29 | 1.28 | — | — | |
| Pfizer Inc. | 0.67 | 1.06 | 1.06 | — | — | |
| Regeneron Pharmaceuticals Inc. | 0.51 | 0.54 | 0.86 | — | — | |
| Thermo Fisher Scientific Inc. | 0.92 | 1.02 | 0.96 | — | — | |
| Vertex Pharmaceuticals Inc. | 0.56 | 0.64 | 0.75 | — | — | |
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.15 | 1.24 | 1.27 | — | — | |
| Equity Turnover, Industry | ||||||
| Health Care | 1.69 | 1.69 | 1.67 | — | — | |
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.
The analysis of investment activity between 2019 and 2023 reveals a period of extreme volatility in asset utilization and revenue generation, characterized by a rapid escalation followed by a significant contraction.
- Net Product Sales Trends
- Revenue experienced exponential growth between 2020 and 2022, surging from 200 million USD to a peak of 18,435 million USD. A substantial reversal occurred in 2023, where sales declined to 6,671 million USD, indicating a sharp reduction in market demand or pricing power relative to the peak period.
- Equity Base Evolution
- Stockholders' equity grew aggressively from 1,175 million USD in 2019 to a maximum of 19,123 million USD in 2022. This expansion aligns with the period of rapid revenue growth. However, equity decreased to 13,854 million USD by the end of 2023, suggesting a reduction in the company's net asset position.
- Equity Turnover Efficiency
- The equity turnover ratio demonstrates a sharp bell-curve trajectory. From a low of 0.08 in 2020, the ratio peaked at 1.25 in 2021, signaling a period of high efficiency in generating sales from the equity base. This efficiency trend deteriorated in subsequent years, falling to 0.96 in 2022 and further dropping to 0.48 in 2023. The downward trend in the latter two years indicates that sales are declining at a faster rate than the reduction in equity, resulting in lower asset productivity.
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