Biogen Inc (BIIB)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	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	2.43	2.66	2.61	2.56
Receivables turnover	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	7.65	7.36	7.18	6.61
Payables turnover	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	3.68	5.22	5.38	5.22
Working capital turnover	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	4.09	3.54	2.99	2.38

Biogen Inc's activity ratios provide insights into the efficiency of the company's operations in managing inventories, receivables, payables, and working capital.

1. Inventory turnover: Biogen's inventory turnover has shown fluctuations over the quarters, ranging from a low of 0.83 in Q3 2023 to a high of 1.96 in Q1 2022. The average inventory turnover is moderate, indicating that the company is able to manage its inventory levels effectively.

2. Receivables turnover: Biogen's receivables turnover has remained relatively stable, with values ranging from 4.52 to 5.35 over the past eight quarters. A higher turnover ratio suggests efficient collection of receivables, indicating good credit management practices.

3. Payables turnover: The payables turnover ratio for Biogen has shown variability, ranging from 4.45 to 6.28. A higher turnover ratio indicates that the company is paying its suppliers more quickly, which can be beneficial for maintaining strong relationships with suppliers.

4. Working capital turnover: Biogen's working capital turnover has fluctuated over the quarters, with values ranging from 1.38 to 2.91. A higher working capital turnover ratio indicates better utilization of working capital to generate sales, reflecting efficient working capital management.

Overall, Biogen's activity ratios suggest that the company is effectively managing its inventories, receivables, payables, and working capital to support its operations and financial performance. However, fluctuations in these ratios indicate a need for continued monitoring and optimization of operational efficiency.

Average number of days

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	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	150.11	137.42	139.82	142.54
Days of sales outstanding (DSO)	days	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	47.74	49.58	50.83	55.20
Number of days of payables	days	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	99.08	69.86	67.88	69.95

To analyze Biogen Inc's activity ratios, we will look at the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.

Days of Inventory on Hand (DOH):
- Biogen Inc's DOH fluctuated significantly over the past year, ranging from a high of 437.88 days in Q3 2023 to a low of 185.97 days in Q1 2022.
- The high DOH in Q3 2023 suggests that the company may be holding excess inventory, which could tie up working capital and lead to increased storage costs.
- The decrease in DOH from Q3 2023 to Q4 2023 reflects a possible improvement in inventory management efficiency compared to the prior quarter.

Days of Sales Outstanding (DSO):
- Biogen Inc's DSO ranged from 68.19 days in Q1 2022 to 80.71 days in Q3 2023.
- A lower DSO indicates that the company is collecting receivables quicker, which is favorable as it improves cash flow and liquidity.
- The increase in DSO from Q3 2022 to Q3 2023 may indicate challenges in collecting receivables promptly.

Number of Days of Payables:
- Biogen Inc's number of days of payables varied from 58.11 days in Q4 2023 to 81.97 days in Q1 2023.
- A longer period of payables suggests that the company is taking longer to pay its suppliers, which can be advantageous for cash management.
- The decrease in the number of days of payables from Q1 2023 to Q2 2023 may indicate a shift towards quicker payment terms with suppliers.

In conclusion, Biogen Inc's activity ratios show fluctuations in inventory management, accounts receivable collection, and accounts payable practices over the past year. Monitoring these ratios can provide insights into the company's operational efficiency and financial health.

Long-term

	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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	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	4.43	4.54	4.57	4.58
Total asset turnover	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	0.53	0.52	0.54	0.52

The fixed asset turnover ratio for Biogen Inc has been relatively stable over the past eight quarters, ranging from 2.97 to 3.21. This ratio indicates that the company generates revenue efficiently from its fixed assets, with an average of around 3 times per year. A higher fixed asset turnover ratio suggests better utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated more, ranging from 0.35 to 0.46 over the same period. This ratio reflects the efficiency of the company in generating revenue from all its assets, fixed and current. A lower total asset turnover ratio may indicate inefficiencies in asset utilization or a high level of assets relative to sales.

Overall, Biogen Inc's fixed asset turnover ratio shows a consistent performance in utilizing its fixed assets to generate sales, while the total asset turnover ratio has varied, potentially signaling changes in the company's overall asset management efficiency. It is important for investors and analysts to track these ratios over time to assess the company's ability to generate revenue from its assets.