Biogen Inc (BIIB)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	6.89	—	—	—	5.91	—	—	6.18	5.97	6.61	6.78	6.63	7.09	6.44	6.93	6.80	7.03	7.04	6.79	6.89
Payables turnover	12.10	11.93	15.04	13.95	13.74	12.35	11.13	10.00	10.29	15.48	13.91	15.10	9.62	8.94	8.29	5.63	3.97	4.42	4.54	4.65
Working capital turnover	5.02	6.84	2.42	2.73	2.87	2.91	1.38	1.50	1.56	1.77	2.25	2.73	3.09	3.76	3.05	3.55	4.28	3.53	2.87	4.28

Biogen Inc Activity Ratios Analysis:

1. Inventory Turnover:
- Biogen's inventory turnover has shown an upward trend from 2.10 in March 2020 to 2.09 in December 2024.
- The ratio peaked at 4.95 in March 2022, indicating efficient management of inventory during that period.

2. Receivables Turnover:
- Biogen's receivables turnover has been relatively stable, hovering around 6.25 to 7.00 over the years.
- A temporary decline was observed in December 2022 to 5.97, followed by a recovery to 6.89 in December 2024.

3. Payables Turnover:
- Biogen's payables turnover ratio has seen significant fluctuations over the period, reaching its highest at 15.48 in September 2022.
- The ratio indicates that Biogen is managing its payables effectively, negotiating favorable credit terms with suppliers.

4. Working Capital Turnover:
- Biogen's working capital turnover ratio has declined steadily from 4.28 in March 2020 to 5.02 in December 2024, reflecting a decreasing efficiency in utilizing working capital.
- An anomaly was noted in September 2024 where the ratio spiked to 6.84, potentially indicating a more efficient use of working capital during that period.

In conclusion, Biogen has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital turnover ratios. Overall, the company has maintained a satisfactory level of activity ratios, indicating effective management of operational assets and liabilities.

Average number of days

		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
Days of inventory on hand (DOH)	days	175.04	178.76	171.57	170.11	166.44	200.35	98.18	95.23	96.99	84.61	78.09	73.70	87.07	128.57	147.27	176.45	216.06	212.94	199.56	173.40
Days of sales outstanding (DSO)	days	52.99	—	—	—	61.75	—	—	59.04	61.17	55.25	53.81	55.06	51.50	56.65	52.67	53.70	51.96	51.82	53.75	52.96
Number of days of payables	days	30.18	30.60	24.27	26.16	26.56	29.57	32.79	36.52	35.46	23.58	26.23	24.18	37.96	40.81	44.05	64.81	91.98	82.55	80.42	78.54

Based on the activity ratios of Biogen Inc over the past few years, here is a detailed analysis:

1. Days of Inventory on Hand (DOH):
- Biogen Inc has seen fluctuations in its inventory management efficiency. The company had relatively high inventory days in September 2020 at 212.94 days but managed to optimize its inventory levels significantly by December 2021, with only 87.07 days. However, there was an increase in DOH by the end of 2023, with 166.44 days, indicating a potential slowdown in inventory turnover.

2. Days of Sales Outstanding (DSO):
- The company's accounts receivable collection period, as reflected by DSO, remained relatively stable over the years. Biogen Inc had a consistent DSO range between 50 to 60 days, except for a slight increase in December 2022 to 61.17 days. However, no data was available for DSO in the second half of 2023 and 2024.

3. Number of Days of Payables:
- Biogen Inc improved its payables management efficiency during the analyzed period. The company reduced its payable days from 91.98 days in December 2020 to 26.16 days in March 2024. This indicates that Biogen Inc has been able to extend its payment period to suppliers, potentially improving its cash flow position.

Overall, Biogen Inc's activity ratios show mixed performance in inventory management, stable accounts receivable collection, and significant improvement in payables management efficiency over the years. Monitoring and managing these ratios effectively can help the company optimize its working capital and overall financial performance.

Long-term

	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
Fixed asset turnover	3.04	2.99	2.98	2.95	2.97	3.03	3.02	3.06	3.08	3.17	3.17	3.21	3.21	3.25	3.40	3.67	3.94	4.25	4.35	4.39
Total asset turnover	0.34	0.34	0.36	0.36	0.37	0.35	0.40	0.41	0.41	0.42	0.42	0.46	0.46	0.47	0.48	0.53	0.55	0.57	0.57	0.55

Biogen Inc's fixed asset turnover has gradually decreased from 4.39 in March 2020 to 2.99 in September 2024, indicating a declining efficiency in generating revenue from fixed assets. This decline may suggest underutilization or aging of fixed assets, requiring further investigation.

Meanwhile, the total asset turnover ratio has also experienced a downward trend, decreasing from 0.55 in March 2020 to 0.34 in December 2024. This indicates a reduction in the company's ability to generate sales from its total assets over the period. Lower total asset turnover may signal inefficiencies in asset utilization, potentially affecting the company's overall profitability and operational performance.

Overall, the declining fixed asset turnover and total asset turnover ratios suggest potential inefficiencies in asset management and utilization at Biogen Inc, highlighting the need for further analysis and potential strategic adjustments to improve operational efficiency and financial performance.