Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Total Asset Turnover

The reported total asset turnover displayed a declining trend from 0.5 in 2020 to 0.38 in 2024, with a notable dip occurring between 2021 and 2022. The adjusted total asset turnover followed a similar pattern, decreasing from 0.53 in 2020 to 0.42 in 2024. This downward trend suggests a reduction in the efficiency with which assets are utilized to generate revenue over the observed period.

Current Ratio

The reported current ratio fluctuated, beginning at 3.63 in 2020, decreasing slightly to 3.56 in 2021, then increasing significantly to peak at 5.69 in 2023 before moderating to 4.73 in 2024. The adjusted current ratio mirrored this behavior, rising from 4.61 in 2020 to a high of 6.57 in 2023 and then decreasing to 5.63 in 2024. These values indicate a generally strong liquidity position, with heightened short-term asset coverage relative to liabilities in the later years.

Debt to Equity Ratio

The reported debt to equity ratio steadily declined from 0.24 in 2020 to 0.09 in 2024, indicating a consistent reduction in reliance on debt financing relative to shareholders' equity. The adjusted debt to equity ratio exhibited a similar trend, decreasing from 0.25 in 2020 to 0.11 in 2024. This suggests an improving capital structure with lower financial risk over time.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios showed a consistent decrease from 0.20 in 2020 to around 0.08-0.10 in 2024. The reduction points to a declining proportion of debt within the total capital structure, which aligns with the trend noted in the debt to equity ratios, signifying enhanced financial stability.

Financial Leverage

The reported financial leverage ratio dropped from 1.56 in 2020 to around 1.27-1.29 during 2023-2024, showing a moderate decrease in the use of debt relative to equity. The adjusted financial leverage ratio declined similarly, from 1.49 to approximately 1.28 over the same interval. This reflects a gradual reduction in leveraged financial risk.

Net Profit Margin

The reported net profit margin increased markedly from 41.35% in 2020 to a peak of 50.25% in 2021, but then declined significantly to around 30% in 2023 and 2024. The adjusted net profit margin demonstrated a comparable trend, rising from 43.32% in 2020 to 48.6% in 2021, followed by a decline to approximately 27% in the later years. This decrease in profitability margins indicates challenges in sustaining previously high profit levels.

Return on Equity (ROE)

The reported ROE rose from 31.86% in 2020 to a high of 43.03% in 2021, then dropped sharply to about 15% by 2023-2024. The adjusted ROE mirrored this pattern, increasing initially from 34.23% to 42.12% and subsequently declining to near 15%. The decline suggests diminished effectiveness in generating shareholder returns in the latter years.

Return on Assets (ROA)

Reported ROA showed an increase from 20.47% in 2020 to 31.75% in 2021 but decreased significantly thereafter to around 11.7% in 2024. The adjusted ROA followed a similar trend, peaking at 31.57% in 2021 and decreasing to roughly 11.5% by 2024. This pattern indicates a reduction in asset profitability after a strong performance in 2021.

Revenue Trends

Revenues demonstrated a significant increase from 2020 to 2021, nearly doubling from approximately $8.5 billion to over $16 billion. However, this was followed by a notable decline in 2022, when revenues dropped to about $12.2 billion. Subsequent years show a recovery trend, with revenues rising gradually in 2023 and 2024, reaching around $14.2 billion by the end of the period.

Total Assets

Total assets exhibited a consistent upward trend throughout the period. Starting at approximately $17.2 billion in 2020, assets increased steadily each year, reaching nearly $37.8 billion by the end of 2024. This represents a more than twofold increase over five years.

Reported Total Asset Turnover

The reported total asset turnover ratio peaked in 2021 at 0.63, indicating more effective utilization of assets to generate revenues during that year. This ratio then declined in subsequent years, falling below 0.4 by 2024. The downward trend post-2021 reflects a decrease in revenue generated per unit of total assets.

Adjusted Revenues

The adjusted revenues closely mirror the pattern observed in reported revenues, with a sharp increase from 2020 to 2021, followed by a decline in 2022, and a gradual subsequent increase through 2024. Adjusted revenues start at approximately $8.6 billion and increase to about $14.4 billion by 2024.

Adjusted Total Assets

Adjusted total assets exhibit a continuous increase, similar to reported total assets, but with slightly lower absolute values throughout the period. The upward trajectory is steady, rising from around $16.3 billion in 2020 to $34.4 billion in 2024.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also follows the trend of its reported counterpart, peaking in 2021 at 0.65 and declining thereafter to 0.42 by 2024. This suggests that even after adjustments, asset efficiency in generating revenue decreased in the latter part of the period under review.

Overall Insights

The data reflects a period of rapid growth in revenues and asset base initially, particularly through 2021, followed by a period of readjustment where revenues declined sharply but assets continued to grow. The decline in asset turnover ratios suggests a reduced efficiency in asset utilization relative to revenue generation after 2021, which might indicate increased asset investments or expansion that have not yet fully translated into revenue increases. The gradual recovery in revenues in 2023 and 2024, alongside continuous asset growth, points to an ongoing phase of scaling with potential for improved asset utilization in future periods.

Current Assets

Current assets demonstrated a consistent upward trend from 2020 to 2023, increasing steadily from approximately 9.78 billion US dollars to nearly 19.48 billion US dollars. However, in 2024, current assets declined slightly to about 18.66 billion US dollars, indicating a minor reduction after several years of growth.

Current Liabilities

Current liabilities generally increased over the analyzed period, starting at approximately 2.70 billion US dollars in 2020 and rising to nearly 3.94 billion US dollars by 2024. There was a noticeable dip in 2022, where liabilities decreased to 3.14 billion US dollars before increasing again in subsequent years.

Reported Current Ratio

The reported current ratio revealed a strong liquidity position throughout the period. It remained above 3.5 from 2020 to 2021, surged significantly to 5.06 in 2022, and peaked at 5.69 in 2023. In 2024, it decreased moderately but stayed at a robust 4.73, indicating continued strong short-term financial health.

Adjusted Current Liabilities

Adjusted current liabilities showed a pattern similar to reported current liabilities but at generally lower values. Starting at approximately 2.12 billion US dollars in 2020, these liabilities rose sharply in 2021 to about 3.49 billion, then declined in 2022 to 2.66 billion. The adjusted liabilities increased again thereafter, reaching 3.32 billion US dollars by 2024.

Adjusted Current Ratio

The adjusted current ratio consistently indicated strong liquidity, improving from 4.61 in 2020 to a peak of 6.57 in 2023. This was followed by a decline to 5.63 in 2024, although the ratio remained well above 4.0, suggesting excellent capacity to meet short-term obligations when accounting for adjustments in liabilities.

Overall Analysis

The financial data reveals a company with increasing current assets and manageable liabilities, resulting in strong liquidity positions across all years. Despite minor fluctuations in liabilities and a slight decrease in assets in the final year, both reported and adjusted current ratios suggest a stable and comfortable short-term financial status. The peak in liquidity measures during 2023 followed by a moderate decline in 2024 may warrant monitoring but does not indicate immediate concerns.

The financial data reveals distinct trends in the company's capital structure and debt management over the observed five-year period.

Total Debt

Total debt remains relatively stable, showing a slight increase from approximately 2.70 billion US dollars in 2020 to around 2.70 billion US dollars in 2024. This indicates a consistent approach to debt levels without significant fluctuations.

Stockholders' Equity

Stockholders’ equity demonstrates a strong upward trend, increasing markedly from about 11.03 billion US dollars in 2020 to nearly 29.35 billion US dollars in 2024. This growth suggests robust equity financing and possibly enhanced retained earnings or capital injections over the years.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio exhibits a clear downward trend, decreasing from 0.24 in 2020 to 0.09 in 2024. This implies a reduction in the relative level of debt compared to equity, reflecting an improvement in financial leverage and potentially a stronger balance sheet.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to the reported total debt, with a slight increase over the period from approximately 2.76 billion US dollars in 2020 to about 2.94 billion US dollars in 2024. The adjustment acknowledges minor differences but maintains stability in overall debt amounts.

Adjusted Stockholders' Equity

Adjusted stockholders’ equity also shows consistent growth, rising from roughly 10.94 billion US dollars in 2020 to close to 26.85 billion US dollars in 2024. This reinforces the observation of strengthened equity positions after adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio declines steadily from 0.25 in 2020 to 0.11 in 2024. Similar to the reported ratio, this indicates improved solvency and reduced reliance on debt financing relative to equity.

Overall, the data indicates that while the company's debt levels have remained relatively constant, equity has grown substantially. As a result, both reported and adjusted debt-to-equity ratios have decreased over time, reflecting enhanced financial stability and a conservative leverage position. These trends may suggest prudential financial management aimed at strengthening the capital base and lowering risk exposure.

Total debt

The total debt remained relatively stable over the period, showing a slight incremental increase from approximately 2.70 billion US dollars at the end of 2020 to around 2.70 billion US dollars by the end of 2024. This indicates limited changes in the overall borrowing level throughout the years.

Total capital

Total capital demonstrated a significant upward trend, rising from approximately 13.7 billion US dollars at the end of 2020 to about 32.1 billion US dollars at the end of 2024. This reflects substantial growth in the company's capital base over the analyzed timeframe.

Reported debt to capital ratio

This ratio experienced a consistent decline from 0.20 in 2020 to 0.08 in 2024, illustrating an improvement in the company’s leverage position. The decreasing ratio suggests that debt is becoming a smaller proportion of total capital, indicating strengthening financial stability and potentially reduced risk for creditors.

Adjusted total debt

Adjusted total debt mirrored the trend of the reported total debt with a marginal increase, growing from approximately 2.76 billion US dollars in 2020 to nearly 2.94 billion US dollars in 2024. The modest rise suggests consistent management of debt obligations under the adjusted metrics without significant new borrowings.

Adjusted total capital

Adjusted total capital also showed a considerable increase, ascending from roughly 13.7 billion US dollars in 2020 to nearly 29.8 billion US dollars in 2024. This aligns with the trend in reported total capital and further supports the view of growing resource base under the adjusted framework.

Adjusted debt to capital ratio

The adjusted debt to capital ratio decreased from 0.20 in 2020 to approximately 0.10 by 2024. This steady decline, similar to the reported ratio, confirms the company’s enhanced capital structure and reduced reliance on debt financing over time when considering adjustments.

Total Assets

Total assets have shown a steady increase year over year from 17.16 billion USD in 2020 to 37.76 billion USD in 2024. This represents more than a doubling of the asset base within the five-year period, indicating consistent growth in the company's asset holdings.

Stockholders’ Equity

Stockholders’ equity has also exhibited strong growth, increasing from approximately 11.03 billion USD in 2020 to 29.35 billion USD in 2024. The upward trend in equity suggests retained earnings and capital inflows outpacing liabilities, reinforcing the company's financial stability over time.

Reported Financial Leverage

The reported financial leverage ratio has decreased from 1.56 in 2020 to 1.29 in 2024, signaling a reduction in reliance on debt financing relative to equity. The leverage ratio declined steadily through 2023, with a slight uptick in 2024, yet overall the trend highlights an improvement in the company's capital structure and a lower risk profile.

Adjusted Total Assets

Adjusted total assets, presumably reflecting certain accounting adjustments or asset revaluations, have grown consistently from 16.30 billion USD in 2020 to 34.45 billion USD in 2024. The pattern closely mirrors that of reported total assets though with slightly lower values each year, suggesting conservative asset valuation adjustments.

Adjusted Stockholders’ Equity

Adjusted equity also follows a positive trajectory, rising from 10.94 billion USD in 2020 to 26.85 billion USD in 2024. The growth rate is somewhat in line with reported equity, albeit slightly lower, which aligns with the adjustments made to total equity, again implying a conservative approach to equity valuation.

Adjusted Financial Leverage

The adjusted financial leverage ratio displays a declining trend from 1.49 in 2020 to 1.28 in 2024, very similar to the reported leverage pattern. This steady decline denotes an improving balance sheet with reduced effective financial risk over the analyzed period.

The financial data reveals notable fluctuations and trends in profitability and revenue over the five-year period analyzed.

Revenue Trends

The revenue figures increased significantly from 2020 to 2021, with reported revenues nearly doubling from approximately 8.5 billion to 16.1 billion US dollars. However, in 2022, revenues declined sharply by about 24% compared to 2021. Subsequently, revenues showed a steady recovery in 2023 and 2024, reaching around 14.2 billion US dollars in 2024, although still below the peak in 2021. Adjusted revenues followed a similar trajectory with a peak in 2021, a decline in 2022, and gradual improvement thereafter.

Net Income Trends

Reported net income showed a peak in 2021 at approximately 8.1 billion US dollars, more than doubling the 2020 figure of 3.5 billion. This was followed by a steep decrease in 2022 and a moderate decline in 2023. A rebound occurred in 2024, with net income increasing to approximately 4.4 billion US dollars but still remaining below the 2021 peak. Adjusted net income reflected a similar pattern, peaking in 2021, then decreasing notably in 2022 and 2023 before recovering in 2024.

Profit Margins

The reported net profit margin peaked at over 50% in 2021, indicating exceptionally high profitability relative to revenue. Margins then dropped substantially in 2022 to about 35.6%, followed by further declines in 2023 and a slight recovery in 2024 to around 31%. Adjusted net profit margins were consistently lower than reported margins but exhibited the same overall trend: a peak in 2021 near 49%, followed by sharp decreases in subsequent years and a modest increase in the final year.

Insights and Observations

The overall financial performance reveals a cyclical pattern characterized by a significant growth phase culminating in 2021, followed by a contraction phase in 2022 and 2023, and partial recovery in 2024. The high profit margins in 2021 suggest that operational efficiencies or favorable market conditions were at their peak during that year. The decline in both revenue and profitability post-2021 could reflect increased costs, market challenges, or other operational pressures. The partial improvement in 2024 indicates some stabilization and renewed growth potential, though profitability remains below peak levels. The alignment of reported and adjusted figures in terms of trend confirms consistency in underlying business performance despite adjustments.

Net income

Net income exhibited a significant increase from 3,513,200 thousand US dollars in 2020 to a peak of 8,075,300 thousand US dollars in 2021. Following this peak, there was a notable decline in 2022 to 4,338,400 thousand US dollars. The net income remained relatively stable but slightly decreased in 2023 to 3,953,600 thousand US dollars, before rising again to 4,412,600 thousand US dollars in 2024. This pattern indicates a pronounced volatility in profitability during these years.

Stockholders’ equity

Stockholders' equity demonstrated consistent growth throughout the period. Starting at 11,025,300 thousand US dollars in 2020, it sharply increased to 18,768,800 thousand US dollars in 2021. This upward trend continued in the subsequent years, reaching 22,664,000 thousand US dollars in 2022, 25,973,100 thousand US dollars in 2023, and 29,353,600 thousand US dollars in 2024. The continuous increase suggests sustained capital retention and reinvestment within the company.

Reported Return on Equity (ROE)

The reported ROE followed a declining trend after 2021. It increased from 31.86% in 2020 to 43.03% in 2021, indicating a strong performance relative to equity during that year. However, it decreased sharply to 19.14% in 2022, followed by further decreases to 15.22% in 2023 and 15.03% in 2024. This indicates a reduced efficiency in generating profits from shareholders' equity despite the equity base growth.

Adjusted net income

Adjusted net income mirrored the pattern of net income but showed slightly different values. It grew from 3,745,100 thousand US dollars in 2020 to 7,752,500 thousand US dollars in 2021, then declined sharply to 3,411,800 thousand US dollars in 2022. It remained relatively stable in 2023 at 3,311,600 thousand US dollars before increasing to 3,956,100 thousand US dollars in 2024. The adjusted figures reaffirm the volatility observed in profitability across the years.

Adjusted stockholders’ equity

Adjusted stockholders' equity also showed robust growth similar to the reported equity figures, starting at 10,942,100 thousand US dollars in 2020 and increasing steadily each year to 18,407,200 thousand US dollars in 2021, then to 21,488,000 thousand US dollars in 2022, 23,983,300 thousand US dollars in 2023, and reaching 26,852,900 thousand US dollars in 2024. This consistent rise supports the trend of the company strengthening its equity position over time.

Adjusted Return on Equity (ROE)

Adjusted ROE peaked at 42.12% in 2021, increasing from 34.23% in 2020, then followed a steep decline to 15.88% in 2022. It continued its downward trend to 13.81% in 2023 but showed a slight recovery to 14.73% in 2024. The adjusted ROE highlights diminished profitability relative to equity, consistent with the reported ROE trend, reflecting challenges in maintaining the high returns achieved in earlier years.

Net Income

Net income demonstrated a significant increase from 3,513,200 thousand US dollars in 2020 to a peak of 8,075,300 thousand US dollars in 2021. Subsequently, the net income declined sharply to 4,338,400 thousand in 2022, followed by a further decrease to 3,953,600 thousand in 2023. In 2024, it rebounded moderately to 4,412,600 thousand US dollars, indicating some recovery after the previous declines.

Total Assets

Total assets showed a steady and consistent upward trend throughout the period. Beginning at 17,163,300 thousand US dollars in 2020, assets increased each year, reaching 37,759,400 thousand US dollars by the end of 2024. This pattern suggests continuous asset growth and expansion of the company's asset base over the five-year span.

Reported Return on Assets (ROA)

The reported ROA increased notably from 20.47% in 2020 to a high of 31.75% in 2021, coinciding with the peak in net income for that year. However, after 2021, there was a marked decline in ROA, dropping to 14.85% in 2022 and continuing a gradual reduction to 11.69% by 2024. This decline reflects diminishing efficiency in generating income relative to the asset base during the latter years.

Adjusted Net Income

Adjusted net income followed a similar trajectory to reported net income, rising from 3,745,100 thousand US dollars in 2020 to a peak of 7,752,500 thousand in 2021. It then decreased significantly to 3,411,800 thousand in 2022 and remained relatively stable with slight fluctuations thereafter, ending at 3,956,100 thousand in 2024. The adjusted figures highlight a strong peak in 2021 followed by a period of lowered profitability with minor recovery in the final year.

Adjusted Total Assets

Adjusted total assets increased consistently from 16,304,400 thousand US dollars in 2020 to 34,445,300 thousand US dollars in 2024. This steady asset growth mirrors the trend seen in reported total assets, reinforcing a picture of continuous investment and asset base expansion.

Adjusted Return on Assets (ROA)

Adjusted ROA rose from 22.97% in 2020 to 31.57% in 2021, in line with adjusted net income patterns. Subsequently, there was a substantial decline to 12.41% in 2022, followed by a gradual decrease to 10.86% in 2023 and a slight improvement to 11.49% in 2024. This suggests that adjusted operational efficiency also decreased after 2021, with a modest rebound in the last reported year.