Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Paying user area
Try for free
Regeneron Pharmaceuticals Inc. pages available for free this week:
- Statement of Comprehensive Income
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Regeneron Pharmaceuticals Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Return on Invested Capital (ROIC)
Regeneron Pharmaceuticals Inc., ROIC calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The analysis reveals a significant fluctuation in Return on Invested Capital (ROIC) over the five-year period. Net operating profit after taxes (NOPAT) and invested capital both exhibit changes, contributing to the observed ROIC trends.
- ROIC Trend
- ROIC demonstrates a substantial decline from 72.50% in 2021 to 28.87% in 2022. This represents a considerable decrease in the return generated for each dollar of invested capital. A further reduction to 23.53% is noted in 2023. A modest recovery to 26.67% occurs in 2024, followed by a slight decrease to 23.85% in 2025.
- NOPAT Trend
- NOPAT experiences a marked decrease from US$7,819,887 thousand in 2021 to US$3,547,649 thousand in 2022. It continues to decline to US$2,823,336 thousand in 2023 before increasing to US$3,374,924 thousand in 2024. A subsequent decrease to US$3,147,470 thousand is observed in 2025.
- Invested Capital Trend
- Invested capital increases from US$10,786,500 thousand in 2021 to US$12,287,700 thousand in 2022. It then decreases to US$11,998,500 thousand in 2023. Further increases are seen in 2024 (US$12,653,600 thousand) and 2025 (US$13,198,700 thousand), indicating a general upward trend in capital employed despite the fluctuations.
The initial decline in ROIC appears largely driven by the significant reduction in NOPAT between 2021 and 2022. While NOPAT shows some recovery in 2024, it does not fully offset the initial decrease, and the continued increase in invested capital limits the extent of ROIC improvement. The relatively stable ROIC in the most recent year (2025) suggests a potential stabilization, but remains considerably lower than the level observed in 2021.
Decomposition of ROIC
Regeneron Pharmaceuticals Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | = | × | × | ||||
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The period under review demonstrates significant fluctuations in the components contributing to overall return on invested capital. A notable decline in operating profit margin and capital turnover initially impacted ROIC, followed by a period of partial recovery and subsequent stabilization with a renewed decline in the final year.
- Operating Profit Margin (OPM)
- The operating profit margin experienced a substantial decrease from 57.80% in 2021 to 29.03% in 2023. A modest recovery to 30.25% occurred in 2024, followed by a further increase to 31.63% in 2025. This suggests potential challenges in maintaining profitability during the 2022-2023 timeframe, with some improvement in subsequent years, though not returning to prior levels.
- Turnover of Capital (TO)
- Capital turnover exhibited a marked decline from 1.48 in 2021 to 0.99 in 2022, indicating reduced efficiency in generating revenue from invested capital. A partial recovery to 1.10 in 2023 and 1.14 in 2024 was observed, but it decreased again to 1.08 in 2025. This suggests a fluctuating ability to effectively utilize capital assets to generate sales.
- Effective Cash Tax Rate Adjustment (1 – CTR)
- The factor representing one minus the effective cash tax rate remained relatively stable between 2021 and 2024, ranging from 73.93% to 84.81%. However, a decrease to 69.63% was observed in 2025, potentially indicating a change in tax circumstances or accounting practices that slightly increased the after-tax return.
- Return on Invested Capital (ROIC)
- Return on invested capital mirrored the trends in its underlying components. A significant drop from 72.50% in 2021 to 28.87% in 2022 occurred, followed by a slight increase to 26.67% in 2024. The final year, 2025, saw a decrease to 23.85%. The ROIC’s trajectory closely follows the combined impact of the operating profit margin and capital turnover, with the tax rate adjustment having a comparatively smaller influence.
The interplay between operating profitability and asset utilization appears to be the primary driver of the observed changes in return on invested capital. While some stabilization and modest improvement were evident in 2024, the final year’s results suggest ongoing challenges in maximizing returns from invested capital.
Operating Profit Margin (OPM)
Regeneron Pharmaceuticals Inc., OPM calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × ÷ =
4 Click competitor name to see calculations.
The operating profit margin (OPM) exhibited a notable decline between 2021 and 2023, followed by a period of stabilization and modest improvement. This analysis details the observed trends in OPM alongside related movements in net operating profit before taxes (NOPBT) and adjusted revenues.
- Operating Profit Margin (OPM) Trend
- The OPM began at 57.80% in 2021. A substantial decrease was observed in 2022, falling to 39.28%. This downward trend continued into 2023, with the OPM reaching 29.03%. From 2023 to 2025, the OPM demonstrated a recovery, increasing to 30.25% in 2024 and further to 31.63% in 2025. While an improvement, the OPM did not return to the levels seen in 2021.
- Relationship to Net Operating Profit Before Taxes (NOPBT)
- NOPBT decreased significantly from US$9,220,646 thousand in 2021 to US$4,794,046 thousand in 2022, aligning with the initial decline in OPM. Further reduction in NOPBT occurred in 2023, reaching US$3,819,018 thousand, which corresponded with the lowest OPM value. Subsequent increases in NOPBT to US$4,364,439 thousand in 2024 and US$4,520,354 thousand in 2025 coincided with the OPM’s partial recovery.
- Relationship to Adjusted Revenues
- Adjusted revenues also decreased from US$15,951,500 thousand in 2021 to US$12,205,300 thousand in 2022, contributing to the initial OPM decline. Revenues experienced a rebound in 2023 and 2024, reaching US$13,155,100 thousand and US$14,429,800 thousand respectively. Revenue levels stabilized in 2025 at US$14,291,200 thousand. The revenue increases in 2023 and 2024, coupled with the NOPBT increases, facilitated the partial restoration of the OPM.
The period between 2021 and 2023 was characterized by simultaneous declines in NOPBT, adjusted revenues, and OPM. The subsequent years show a stabilization and modest improvement, suggesting a potential turning point. However, the OPM remains below its 2021 peak, indicating that profitability, relative to revenue, has not fully recovered.
Turnover of Capital (TO)
Regeneron Pharmaceuticals Inc., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | ||||||
| Add: Increase (decrease) in deferred revenue | ||||||
| Adjusted revenues | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Invested capital. See details »
2 2025 Calculation
TO = Adjusted revenues ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The turnover of capital exhibited fluctuating performance over the five-year period. Initial values decreased before stabilizing and experiencing a slight decline in the most recent year presented.
- Turnover of Capital (TO) Trend
- The turnover of capital ratio decreased from 1.48 in 2021 to 0.99 in 2022, representing a substantial decline. A subsequent recovery was observed in 2023, with the ratio increasing to 1.10. This upward trend continued into 2024, reaching 1.14. However, in 2025, the ratio decreased slightly to 1.08.
Adjusted revenues initially decreased from US$15,951,500 thousand in 2021 to US$12,205,300 thousand in 2022, coinciding with the initial drop in the turnover of capital. Revenues then increased in both 2023 and 2024, reaching US$14,429,800 thousand, before experiencing a minor decrease to US$14,291,200 thousand in 2025.
- Invested Capital
- Invested capital increased from US$10,786,500 thousand in 2021 to US$12,287,700 thousand in 2022. It then decreased to US$11,998,500 thousand in 2023, before rising again to US$12,653,600 thousand in 2024 and US$13,198,700 thousand in 2025. The consistent increase in invested capital, particularly in the later years, may be contributing to the stabilization of the turnover ratio despite fluctuations in revenue.
The interplay between revenue and invested capital suggests that while revenue growth has been inconsistent, the company has continued to invest in its capital base. The turnover of capital ratio, reflecting the efficiency with which invested capital is used to generate revenue, demonstrates a recovery from the initial decline but has not returned to the levels observed in 2021.
Effective Cash Tax Rate (CTR)
Regeneron Pharmaceuticals Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
The effective cash tax rate exhibited considerable fluctuation over the five-year period. While cash operating taxes decreased from 2021 to 2023, they increased in 2024 and 2025. Net operating profit before taxes experienced a significant decline from 2021 to 2022, followed by a more moderate decrease in 2023, before recovering somewhat in 2024 and 2025.
- Effective Cash Tax Rate (CTR) - Trend Analysis
- The effective cash tax rate increased from 15.19% in 2021 to 26.00% in 2022, representing a substantial rise. This increase occurred alongside a significant decrease in net operating profit before taxes. The rate remained relatively stable at 26.07% in 2023. A decrease to 22.67% was observed in 2024, before rising again to 30.37% in 2025, the highest level observed during the period. The fluctuations suggest a sensitivity of the effective tax rate to changes in pre-tax income and potentially, changes in the composition of taxable income.
The relationship between net operating profit before taxes and cash operating taxes is not consistently proportional. The largest decrease in net operating profit before taxes occurred between 2021 and 2022, and this was accompanied by a large increase in the effective cash tax rate. This suggests that the decrease in pre-tax income did not proportionally reduce cash tax payments. Conversely, the increase in net operating profit before taxes between 2022 and 2023 did not result in a corresponding decrease in the effective cash tax rate.
The increase in the effective cash tax rate in 2025, coupled with an increase in cash operating taxes, indicates a higher proportion of income is being paid in cash taxes relative to pre-tax profits. Further investigation into the specific tax benefits and credits utilized by the company would be necessary to fully understand the drivers of these fluctuations.