Biogen Inc (BIIB)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	9,675,900	9,835,600	10,173,400	10,981,700	13,444,600
Receivables	US$ in thousands	1,404,800	1,664,100	1,705,000	1,549,400	1,913,800
Receivables turnover		6.89	5.91	5.97	7.09	7.03

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,675,900K ÷ $1,404,800K
= 6.89

The receivables turnover for Biogen Inc has shown a relatively stable trend over the past five years. From December 31, 2020, to December 31, 2021, there was a slight increase from 7.03 to 7.09, indicating that the company was able to collect its accounts receivable more efficiently during that period.

However, in the following years, the receivables turnover decreased to 5.97 by the end of December 31, 2022, and further to 5.91 by December 31, 2023. This decline suggests a potential slowdown in the collection of receivables which may lead to liquidity challenges or credit risk.

By December 31, 2024, the receivables turnover improved to 6.89, showing a positive sign of improved efficiency in collecting receivables compared to the previous year. It is essential for Biogen Inc to closely monitor its receivables turnover ratio to ensure timely collection of outstanding payments and maintain healthy cash flows.