Biogen Inc (BIIB)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	9,835,600	10,173,400	10,981,700	13,444,600	14,377,900
Total current assets	US$ in thousands	6,859,300	9,791,200	7,856,500	6,887,100	8,381,800
Total current liabilities	US$ in thousands	3,434,300	3,272,800	4,298,200	3,742,200	4,863,800
Working capital turnover		2.87	1.56	3.09	4.28	4.09

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,835,600K ÷ ($6,859,300K – $3,434,300K)
= 2.87

The working capital turnover for Biogen Inc has shown fluctuations over the past five years. In 2023, the working capital turnover ratio increased to 2.87 compared to 1.56 in 2022, indicating that the company efficiently used its working capital to generate revenue. This improvement suggests that Biogen managed its working capital more effectively in 2023.

However, the ratio was lower than the levels seen in 2021, 2020, and 2019 when it stood at 3.09, 4.28, and 4.09, respectively. This decline indicates that Biogen was not as efficient in utilizing its working capital to generate sales in 2023 compared to the previous three years.

Overall, the working capital turnover ratio provides insights into how efficiently Biogen has been able to convert its working capital into sales revenue. The fluctuations observed over the years could be attributed to variations in the company's working capital management strategies and its overall operational efficiency.