Biogen Inc (BIIB)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	5,130,800	5,041,700	5,331,600	5,400,300	5,542,500	5,433,300	4,957,700	4,909,800	5,059,300	5,931,600	6,049,300	6,019,100	5,665,300	3,826,700	3,109,900	2,424,000	1,805,200	1,761,600	1,742,500	1,807,700
Inventory	US$ in thousands	2,460,500	2,469,200	2,506,100	2,516,800	2,527,400	2,982,400	1,333,500	1,281,000	1,344,400	1,375,000	1,294,200	1,215,400	1,351,500	1,347,900	1,254,800	1,171,800	1,068,600	1,027,700	952,700	858,800
Inventory turnover		2.09	2.04	2.13	2.15	2.19	1.82	3.72	3.83	3.76	4.31	4.67	4.95	4.19	2.84	2.48	2.07	1.69	1.71	1.83	2.10

December 31, 2024 calculation

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

Biogen Inc's inventory turnover ratio reflects the number of times the company's inventory is sold and replaced during a specified period. The trend analysis of inventory turnover from March 31, 2020, to December 31, 2024, reveals fluctuations in the efficiency of Biogen's inventory management.

At the beginning of the period, in March 2020, the inventory turnover was 2.10, indicating that the company's inventory was turning over approximately 2.10 times during that quarter. The ratio then decreased gradually to 1.69 by December 2020, suggesting a decrease in the efficiency of inventory turnover.

Starting from March 2021, the inventory turnover began to improve, experiencing a steady increase to reach 4.19 by December 2021. This significant improvement continued throughout the first half of 2022, peaking at 4.95 in March 2022. This surge in inventory turnover suggests that Biogen was managing its inventory more efficiently and selling products at a faster rate during this period.

However, in the latter part of 2022 and into 2023, the inventory turnover ratio started to decline, dropping to 1.82 by September 30, 2023. This decrease implies that Biogen may have been carrying excess inventory or facing challenges in selling products efficiently during that period.

The inventory turnover ratio showed a slight recovery in the subsequent quarters of 2023 and the beginning of 2024, stabilizing around the range of 2.00 to 2.20. This indicates that Biogen was working towards optimizing its inventory management practices.

Overall, the inventory turnover ratio of Biogen Inc fluctuated over the analyzed period, reflecting changes in the company's ability to manage its inventory effectively and meet market demand. Going forward, Biogen should continue to monitor and adjust its inventory practices to ensure optimal turnover and mitigate carrying costs associated with excess inventory.