Biogen Inc (BIIB)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Current ratio		2.00	2.99	1.83	1.84	1.72

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,859,300K ÷ $3,434,300K
= 2.00

The current ratio of Biogen Inc has shown some fluctuations over the past five years. In 2023, the current ratio stands at 2.00, indicating that the company's current assets are twice the size of its current liabilities. This suggests that Biogen Inc has a strong ability to cover its short-term obligations with its current assets.

Comparing this to the ratios from the previous years, we see that in 2022 the current ratio was 2.99, marking a significant increase from the current year. This implies that in 2022, Biogen Inc had an even stronger ability to cover its short-term liabilities.

In 2021, the current ratio dropped to 1.83, indicating a potential weakening in Biogen Inc's short-term liquidity position compared to the previous year. However, this ratio improved slightly to 1.84 in 2020, showing a more stable liquidity position. In 2019, the current ratio was 1.72, suggesting that the company had a lower ability to cover its short-term obligations compared to the current year.

Overall, Biogen Inc's current ratio has fluctuated over the past five years, with the current year's ratio of 2.00 indicating a relatively strong liquidity position. It is important for the company to maintain a healthy current ratio to ensure it can meet its short-term obligations effectively.