Biogen Inc (BIIB)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,130,800	5,542,500	5,059,300	5,665,300	1,805,200
Inventory	US$ in thousands	2,460,500	2,527,400	1,344,400	1,351,500	1,068,600
Inventory turnover		2.09	2.19	3.76	4.19	1.69

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $5,130,800K ÷ $2,460,500K
= 2.09

Biogen Inc's inventory turnover has shown fluctuations over the past five years. The inventory turnover ratio indicates the efficiency of a company in managing its inventory.

- In December 2020, the inventory turnover was 1.69, suggesting that Biogen turned over its inventory approximately 1.69 times during that year.
- By December 2021, the ratio had significantly improved to 4.19, indicating that Biogen was more efficient in managing its inventory turnover, possibly through better inventory control and management practices.
- In December 2022, the inventory turnover slightly decreased to 3.76, but it remained at a relatively high level compared to the base year.
- However, there was a notable decline in inventory turnover to 2.19 by December 2023, which might suggest challenges in managing inventory levels or changes in demand patterns for Biogen's products.
- By December 2024, the inventory turnover fell further to 2.09, indicating a continued decrease in the efficiency of managing and turning over inventory.

Overall, Biogen's inventory turnover has shown variability over the years, with improvements in some periods and declines in others. This fluctuation could be influenced by various factors such as changes in demand, production inefficiencies, inventory management practices, or supply chain disruptions. Monitoring this ratio will be crucial for Biogen to ensure optimal inventory management and operational efficiency in the future.