Biogen Inc (BIIB)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,675,900 | 9,835,600 | 10,173,400 | 10,981,700 | 13,444,600 |
| Property, plant and equipment | US$ in thousands | 3,181,300 | 3,309,700 | 3,298,600 | 3,416,400 | 3,411,500 |
| Fixed asset turnover | 3.04 | 2.97 | 3.08 | 3.21 | 3.94 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,675,900K ÷ $3,181,300K
= 3.04
To analyze Biogen Inc's fixed asset turnover over the past five years, the following data has been provided:
- December 31, 2020: 3.94
- December 31, 2021: 3.21
- December 31, 2022: 3.08
- December 31, 2023: 2.97
- December 31, 2024: 3.04
The fixed asset turnover ratio measures a company's ability to generate revenues from its investment in fixed assets. A higher ratio indicates more efficient utilization of fixed assets to generate sales.
From the data provided, we observe a general declining trend in Biogen Inc's fixed asset turnover ratio from 2020 to 2023, which decreased from 3.94 to 2.97. This may suggest a decreasing efficiency in generating sales revenue from its fixed asset base during these years.
However, there was a slight increase in the fixed asset turnover ratio in 2024 to 3.04, indicating a potential improvement in utilizing fixed assets to generate revenue compared to the previous year.
It is important for Biogen Inc to continuously monitor and improve its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation.
Peer comparison
Dec 31, 2024