Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
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Profitability Ratios (Summary)
Regeneron Pharmaceuticals Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable over the five-year period, fluctuating within a narrow range between approximately 84.83% and 87.18%. The margin peaked in 2022 at 87.18%, showing a slight increase compared to 2021, but then experienced minor decreases in the subsequent years, ending at 86.13% in 2024. This consistency indicates effective management of production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin showed notable volatility. It rose significantly from 42.09% in 2020 to a peak of 55.67% in 2021, suggesting improved operational efficiency or revenue growth during that year. However, it declined sharply afterward, dropping to 38.93% in 2022 and continuing a downward trend to 28.1% by 2024. This downward trajectory may indicate increasing operating expenses or reduced operational income over the later periods.
- Net Profit Margin
- The net profit margin followed a pattern similar to operating margin. It increased from 41.35% in 2020 to 50.25% in 2021, reflecting stronger overall profitability that year. Subsequently, it decreased to 35.64% in 2022 and further declined to just over 31% in 2024. Despite the decline, the margin remained above 30%, which is still indicative of solid profitability, though less robust than in 2021.
- Return on Equity (ROE)
- Return on equity experienced a sharp rise from 31.86% in 2020 to a high of 43.03% in 2021, indicating enhanced effectiveness in generating profits from shareholders' equity. However, ROE declined significantly thereafter, falling to 19.14% in 2022 and stabilizing around 15% during 2023 and 2024. This pattern suggests reduced efficiency in utilizing equity capital in the latter years.
- Return on Assets (ROA)
- The return on assets followed the same general trend as ROE, increasing from 20.47% in 2020 to 31.75% in 2021, then declining to 14.85% in 2022 and gradually decreasing to about 11.69% in 2024. This decline indicates that the company’s ability to generate profit from its assets weakened considerably post-2021.
Return on Sales
Return on Investment
Gross Profit Margin
Regeneron Pharmaceuticals Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| 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: 2024-12-31), 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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues showed a significant increase from 2020 to 2021, rising from approximately $8.5 billion to $16.1 billion. However, there was a decline in 2022, with revenues falling to around $12.2 billion. After this dip, revenues experienced a gradual recovery in 2023 and 2024, reaching about $13.1 billion and $14.2 billion, respectively.
- Gross Profit Trends
- Gross profit followed a similar pattern to revenues. It rose sharply from roughly $7.4 billion in 2020 to $13.6 billion in 2021. Then, it decreased to approximately $10.6 billion in 2022 before increasing moderately to $11.3 billion in 2023 and further to $12.2 billion in 2024.
- Gross Profit Margin Analysis
- The gross profit margin remained relatively stable over the observed periods, fluctuating between 84.83% and 87.18%. It started at 86.82% in 2020, slightly decreased to 84.83% in 2021, then peaked at 87.18% in 2022. Margins slightly declined afterwards, with values around 86.16% in 2023 and 86.13% in 2024. This indicates consistent efficiency in generating gross profit relative to revenues, despite the fluctuations in total revenue and gross profit.
- Overall Insights
- The data reveals that the company experienced a strong growth trajectory in 2021 in both revenues and gross profit, followed by a notable contraction in 2022. The subsequent years show a positive recovery trend. Despite these fluctuations, the gross profit margin has remained consistently high, indicating sustained operational efficiency in cost management relative to sales.
Operating Profit Margin
Regeneron Pharmaceuticals Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income from operations | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| 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. | ||||||
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Operating Profit Margin, Industry | ||||||
| Health Care | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Income from Operations
- The income from operations demonstrated a significant increase from 3,576,600 thousand US dollars in 2020 to 8,946,800 thousand US dollars in 2021, indicating a substantial growth during that period. However, after 2021, the income from operations showed a declining trend, decreasing to 4,738,900 thousand in 2022, 4,047,100 thousand in 2023, and further to 3,990,700 thousand in 2024. This suggests a contraction or increased cost pressures impacting operational profitability in the recent years.
- Revenues
- Revenues more than doubled from 8,497,100 thousand US dollars in 2020 to 16,071,700 thousand in 2021, reflecting strong sales growth. Subsequently, revenues declined to 12,172,900 thousand in 2022 but rebounded slightly in the following years to 13,117,200 thousand in 2023 and 14,202,000 thousand in 2024. Despite the initial decline post-2021, the recovery trend in revenues indicates efforts to regain market traction or improve sales performance.
- Operating Profit Margin
- The operating profit margin showed a peak in 2021 at 55.67%, substantially higher than 42.09% in 2020, consistent with the sharp increase in income from operations relative to revenues. Thereafter, the operating margin declined steadily to 38.93% in 2022, 30.85% in 2023, and 28.1% in 2024. This downward trajectory points to decreasing operational efficiency or rising operating costs that have eroded profitability margins despite the partial recovery in revenue levels.
- Overall Trends and Insights
- The overall financial performance shows a pronounced spike in 2021 across income from operations, revenues, and operating margins, followed by a period of decline and stabilization. The initial surge suggests a successful year possibly driven by product launches, market expansion, or other favorable factors. The subsequent reduction in operating income and margins, even with revenues partially recovering, indicates challenges in managing costs or competitive pressures. The consistent decline in operating profit margin highlights that profitability has been under pressure in recent periods, signaling a need for focus on cost control and operational efficiencies to support sustainable growth.
Net Profit Margin
Regeneron Pharmaceuticals Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| 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. | ||||||
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Profit Margin, Industry | ||||||
| Health Care | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue figures exhibit a significant increase from 2020 to 2021, nearly doubling from approximately $8.5 billion to $16.1 billion. However, in the subsequent year, 2022, revenue declined by approximately 24% to roughly $12.2 billion. Following this decline, revenues gradually increased over the next two years, reaching approximately $14.2 billion by the end of 2024, yet still remaining below the peak observed in 2021.
- Net Income Trends
- Net income showed a strong upward movement from 2020 to 2021, more than doubling from about $3.5 billion to $8.1 billion. This was followed by a sharp decrease in 2022, where net income almost halved to approximately $4.3 billion. Subsequently, net income decreased slightly in 2023 but rebounded moderately in 2024 to around $4.4 billion, indicating some stabilization, though well below the peak levels of 2021.
- Net Profit Margin Analysis
- The net profit margin rose from 41.35% in 2020 to a peak of 50.25% in 2021, reflecting high profitability relative to revenues during that year. In 2022, the margin experienced a sharp decline to 35.64%, which further decreased to 30.14% in 2023. A modest improvement was seen in 2024 with the margin increasing to 31.07%. Overall, profit margins remain substantially lower than the peak observed in 2021, aligning with the revenue and net income trends.
- Overall Insights
- The financial data reveals a peak performance in 2021 across revenues, net income, and profit margins, indicating a strong operational year. The following year, 2022, showed a marked decline in all key financial metrics. Although some recovery is evident in 2023 and 2024, none of the metrics returned to the previous highs seen in 2021. The reduction in profitability margins alongside fluctuating revenues suggests possible challenges in cost management or changes in market conditions affecting earnings efficiency. Stabilization in the latest year suggests cautious improvement but highlights the importance of focus on sustainable growth and profitability enhancement moving forward.
Return on Equity (ROE)
Regeneron Pharmaceuticals Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| 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. | ||||||
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROE, Industry | ||||||
| Health Care | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income displayed significant volatility over the analyzed period. It increased markedly from approximately $3.51 billion in 2020 to $8.08 billion in 2021, indicating a strong profitability surge during that year. However, in 2022, net income declined substantially to about $4.34 billion. The downward trend continued into 2023, with net income decreasing slightly to roughly $3.95 billion. In 2024, there was a modest recovery, with net income rising again to approximately $4.41 billion.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the period, beginning at approximately $11.03 billion in 2020 and growing steadily each year to reach nearly $29.35 billion by 2024. This steady upward trend suggests solid capital accumulation and reinvestment by the company.
- Return on Equity (ROE)
- ROE showed a fluctuating yet generally declining pattern. It started at a relatively high 31.86% in 2020, peaked further at 43.03% in 2021—likely supported by the significant net income increase—and then decreased sharply to 19.14% in 2022. The percentage continued to decline in 2023 to 15.22%, with a marginal further decline to 15.03% in 2024. This trend suggests diminishing efficiency in generating profits from shareholders’ equity despite the ongoing equity growth.
Return on Assets (ROA)
Regeneron Pharmaceuticals Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| 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. | ||||||
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROA, Industry | ||||||
| Health Care | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income shows a significant increase from 3,513,200 thousand USD in 2020 to a peak of 8,075,300 thousand USD in 2021. Subsequently, there is a sharp decline to 4,338,400 thousand USD in 2022, followed by a further decrease to 3,953,600 thousand USD in 2023. In 2024, net income recovers slightly to 4,412,600 thousand USD. Overall, the trend indicates high volatility with a pronounced peak in 2021 and lower, more stabilized figures thereafter.
- Total Assets
- Total assets demonstrate a consistent upward trend throughout the period. The assets increased from 17,163,300 thousand USD in 2020 to 25,434,800 thousand USD in 2021, continuing growth through 29,214,500 thousand USD in 2022, 33,080,200 thousand USD in 2023, and reaching 37,759,400 thousand USD in 2024. This steady increase reflects ongoing asset accumulation or investment over the observed years.
- Return on Assets (ROA)
- Return on Assets peaked at 31.75% in 2021, coinciding with the highest net income and a substantial increase in total assets. After this peak, ROA declined sharply to 14.85% in 2022 and decreased further to 11.95% in 2023, maintaining a similar level of 11.69% in 2024. This declining ROA trend since 2021 indicates reduced efficiency in asset utilization to generate profit despite continuous asset growth.
- Summary
- The data reveals that net income and ROA both peaked in 2021, followed by marked declines in subsequent years. In contrast, total assets increased steadily each year. The divergence between the rising asset base and falling ROA suggests that asset growth has not been accompanied by proportional increases in net income or profitability, highlighting potential challenges in asset management or operational efficiency after 2021.