Biogen Inc (BIIB)

Liquidity ratios

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
Current ratio 1.35 1.26 2.29 2.10 2.00 1.68 3.27 3.24 2.99 2.49 1.94 2.01 1.83 1.70 2.15 2.12 1.84 2.06 2.46 1.73
Quick ratio 0.72 0.37 0.71 0.43 0.91 0.54 2.13 2.44 2.26 1.88 1.43 1.58 1.49 1.39 1.42 1.39 1.21 1.47 1.87 1.28
Cash ratio 0.46 0.37 0.71 0.44 0.43 0.54 2.13 1.90 1.74 1.48 1.11 1.17 1.13 0.98 0.91 0.80 0.70 0.94 1.26 0.83

Biogen Inc's liquidity ratios indicate its ability to meet short-term obligations. The current ratio shows a fluctuating trend, increasing from 1.73 in March 2020 to 3.27 in June 2023 before dropping to 1.35 by December 2024. This suggests Biogen had more current assets to cover its current liabilities in the mid-term but experienced a decline towards the end of 2024.

The quick ratio follows a similar pattern, starting at 1.28 in March 2020, peaking at 2.44 in March 2023, and then falling to 0.72 by December 2024. The quick ratio indicates Biogen's ability to pay off current liabilities without relying on the sale of inventories, and the downward trend suggests a decrease in this capacity.

The cash ratio, which measures the ability to cover immediate liabilities with cash and cash equivalents, fluctuates more dramatically. It ranged from 0.43 in December 2023 to 2.13 in June 2023. By the end of 2024, the cash ratio dropped to 0.46, showing a decreased ability to cover short-term obligations with cash on hand.

Overall, while Biogen Inc has shown fluctuations in its liquidity ratios over the years, the downward trends in the quick ratio and cash ratio towards the end of the period may indicate potential liquidity challenges in meeting short-term obligations in the future.

See also:

Biogen Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 197.85 148.16 147.30 143.95 201.64 170.79 65.38 117.75 122.70 116.28 105.66 104.58 100.61 144.41 155.89 165.34 176.04 182.21 172.90 147.82

The cash conversion cycle of Biogen Inc has exhibited fluctuations over the periods stated. The company's cash conversion cycle represents the number of days it takes for Biogen to convert its investments in inventory and accounts receivables into cash flows from sales.

From March 31, 2020, to December 31, 2020, the cash conversion cycle ranged between 147.82 days and 182.21 days, indicating variability in the efficiency of Biogen's working capital management during that period. However, there was a significant improvement in the cash conversion cycle from March 31, 2021, to June 30, 2023, as it decreased consistently from 165.34 days to 65.38 days. This improvement suggests Biogen was able to streamline its operations and manage its inventory and receivables more effectively.

Subsequently, from September 30, 2023, to December 31, 2024, the cash conversion cycle increased significantly, reaching a peak of 201.64 days on December 31, 2023, before declining to 147.30 days on June 30, 2024, and then increasing to 197.85 days by December 31, 2024.

The fluctuation in the cash conversion cycle may indicate challenges in managing working capital efficiently, leading to a longer cycle to convert investments into cash. Biogen should strive to optimize its inventory and accounts receivable processes to improve cash flow and overall financial performance.