Biogen Inc (BIIB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,835,600 | 10,173,400 | 10,981,700 | 13,444,600 | 14,377,900 |
| Property, plant and equipment | US$ in thousands | 3,309,700 | 3,298,600 | 3,416,400 | 3,411,500 | 3,247,300 |
| Fixed asset turnover | 2.97 | 3.08 | 3.21 | 3.94 | 4.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,835,600K ÷ $3,309,700K
= 2.97
The fixed asset turnover ratio for Biogen Inc has shown a declining trend over the past five years, decreasing from 4.43 in 2019 to 2.97 in 2023. This indicates that the company generated less revenue relative to its investment in fixed assets in the most recent year. A lower fixed asset turnover ratio can be a sign of inefficiency in utilizing fixed assets to generate sales. It may suggest that Biogen Inc needs to improve its asset utilization or consider whether it has excess fixed assets that are not contributing effectively to revenue generation. Further analysis of the company's operational efficiency and capital allocation strategies would be necessary to fully understand the drivers behind this trend.
Peer comparison
Dec 31, 2023