Biogen Inc (BIIB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,375,000	1,049,900	3,419,300	2,261,400	1,331,200
Short-term investments	US$ in thousands	179,700	416,800	2,264,600	2,589,600	1,278,900
Total current liabilities	US$ in thousands	5,528,800	3,434,300	3,272,800	4,298,200	3,742,200
Cash ratio		0.46	0.43	1.74	1.13	0.70

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,375,000K + $179,700K) ÷ $5,528,800K
= 0.46

The cash ratio for Biogen Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the cash ratio was 0.70, indicating that the company had $0.70 in cash and cash equivalents for every $1 of current liabilities. This ratio improved in the following years, reaching 1.13 as of December 31, 2021, and further increasing to 1.74 by the end of 2022.

However, there was a notable decline in the cash ratio in the subsequent years. By December 31, 2023, the cash ratio dropped to 0.43, signifying a decrease in the company's ability to cover its short-term obligations with cash on hand. This trend continued into December 31, 2024, where the cash ratio stood at 0.46, indicating a further reduction in liquidity compared to the previous year.

Overall, Biogen Inc's cash ratio has shown variability, with periods of improvement followed by declines. It is essential for investors and stakeholders to monitor this ratio closely, as it reflects the company's liquidity position and ability to meet its short-term financial obligations.