Biogen Inc (BIIB)

Receivables 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
Revenue (ttm)	US$ in thousands	9,675,900	9,607,500	9,672,000	9,663,100	9,835,600	9,993,300	9,971,500	10,104,600	10,173,400	10,363,200	10,633,600	10,819,500	10,981,700	11,100,500	11,697,700	12,604,300	13,444,600	14,263,300	14,487,300	14,422,400
Receivables	US$ in thousands	1,404,800	-2,400	-2,400	-2,400	1,664,100	—	—	1,634,400	1,705,000	1,568,800	1,567,600	1,632,000	1,549,400	1,723,000	1,688,000	1,854,300	1,913,800	2,024,900	2,133,600	2,092,600
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

December 31, 2024 calculation

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

Biogen Inc's receivables turnover ratio fluctuated over the reported periods, ranging from a low of 5.91 to a high of 7.09. The ratio measures how efficiently the company is able to collect on its accounts receivable during a given period. A higher turnover ratio indicates that Biogen is collecting its receivables more frequently, which is generally favorable as it signifies better liquidity and quicker conversion of sales into cash.

In particular, the ratio was relatively stable around the 6.8 to 7.0 range for most quarters, reflecting a consistent ability to collect payments from customers within a reasonable timeframe. However, there were some quarters where the ratio dipped below this range, such as in September 30, 2021, and December 31, 2022, which may indicate potential issues with collecting receivables promptly during those periods.

The declining trend in the most recent quarters, with the ratio dropping to 5.97 in December 31, 2022, and further to 5.91 in March 31, 2023, may raise concerns about Biogen's credit and collection policies, as well as the creditworthiness of its customers.

Overall, Biogen should closely monitor its receivables turnover ratio and implement strategies to ensure efficient management of accounts receivable to maintain healthy cash flow and liquidity levels.