Biogen Inc (BIIB)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.19 | 3.76 | 4.19 | 1.69 | 2.43 |
| Receivables turnover | 5.91 | 5.97 | 7.09 | 7.03 | 7.65 |
| Payables turnover | 13.74 | 10.29 | 9.62 | 3.97 | 3.68 |
| Working capital turnover | 2.87 | 1.56 | 3.09 | 4.28 | 4.09 |
Biogen Inc's activity ratios provide insights into how efficiently the company is managing its resources and operating its business.
- Inventory turnover: Biogen's inventory turnover has been declining over the past five years, indicating that the company is carrying its inventory for a longer period before selling it. This may suggest potential inventory management issues or changes in the demand for its products.
- Receivables turnover: Biogen's receivables turnover has been relatively consistent over the past five years, indicating that the company is collecting its accounts receivable at a stable rate. A higher turnover ratio suggests that Biogen is efficient in collecting payments from its customers.
- Payables turnover: Biogen's payables turnover has been fluctuating over the past five years, with a notable increase in 2023. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which may impact its cash flow and relationships with suppliers.
- Working capital turnover: Biogen's working capital turnover has also been fluctuating over the past five years. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.
Overall, Biogen's activity ratios show varying levels of efficiency in managing its inventory, receivables, payables, and working capital. Investors and stakeholders may want to further investigate the trends in these ratios to assess the company's operational performance and financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 166.44 | 96.99 | 87.07 | 216.06 | 150.11 |
| Days of sales outstanding (DSO) | days | 61.75 | 61.17 | 51.50 | 51.96 | 47.74 |
| Number of days of payables | days | 26.56 | 35.46 | 37.96 | 91.98 | 99.08 |
Biogen Inc's activity ratios provide insight into how efficiently the company manages its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH): This ratio measures the number of days it takes for the company to sell its inventory. Biogen's DOH has been increasing over the years, reaching 364.14 days in 2023. This indicates that the company is holding onto its inventory for a longer period, which may signify potential issues with inventory management or slowing sales.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payments from its customers. Biogen's DSO has shown a slight increase over the years, with 77.93 days in 2023. A higher DSO could suggest challenges in collecting receivables promptly, potentially impacting cash flow.
3. Number of Days of Payables: This ratio highlights the number of days it takes for the company to pay its suppliers. Biogen's number of days of payables has been fluctuating, decreasing to 58.11 days in 2023. A lower number of days of payables indicates that the company is paying its suppliers more quickly, which could impact cash flow and supplier relationships.
Overall, Biogen Inc's activity ratios suggest areas for potential improvement in managing inventory, accounts receivable, and accounts payable to enhance operational efficiency and cash flow management.
See also:
Biogen Inc Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.97 | 3.08 | 3.21 | 3.94 | 4.43 |
| Total asset turnover | 0.37 | 0.41 | 0.46 | 0.55 | 0.53 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Biogen Inc, the fixed asset turnover has declined from 4.43 in 2019 to 2.97 in 2023. This downward trend indicates a decrease in the efficiency of utilizing fixed assets to generate sales over the years.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. Biogen Inc's total asset turnover ratio has also decreased from 0.53 in 2019 to 0.37 in 2023. This decline suggests that the company is less effective in generating sales relative to its total assets compared to previous years.
Overall, the decreasing trend in both fixed asset turnover and total asset turnover ratios for Biogen Inc indicates a decline in the company's efficiency in converting its assets into sales over the years. This may raise concerns about the company's asset utilization and operational efficiency. Further analysis and investigation into the reasons behind these trends are recommended to identify potential areas for improvement in the company's long-term asset management strategies.