Biogen Inc (BIIB)
Liquidity ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 1.72 | 1.91 | 2.46 | 2.84 |
| Quick ratio | 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 | 1.31 | 1.44 | 1.53 | 1.90 |
| Cash ratio | 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 | 0.92 | 1.00 | 0.92 | 1.24 |
Biogen Inc's liquidity ratios, namely the current ratio, quick ratio, and cash ratio, provide insights into the company's ability to meet its short-term obligations with its current assets.
1. Current ratio: Biogen's current ratio has been fluctuating over the past eight quarters, ranging from 1.68 to 3.27. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities. Biogen's current ratio has been consistently above 2, suggesting that the company has a strong ability to meet its short-term obligations and has a comfortable buffer of current assets.
2. Quick ratio: The quick ratio reflects Biogen's ability to pay off its current liabilities without relying on inventory. The quick ratio has ranged from 1.09 to 2.86 over the same period. A quick ratio above 1 indicates that the company can cover its short-term obligations with its most liquid assets. Biogen's quick ratio has also been consistently above 1, indicating a strong ability to meet short-term liabilities without relying on inventory sales.
3. Cash ratio: The cash ratio focuses specifically on Biogen's ability to cover its current liabilities with its cash and cash equivalents. The cash ratio has varied from 0.65 to 2.19 in the past eight quarters. A cash ratio above 1 signifies that the company can cover its short-term obligations with its available cash. Biogen's cash ratio has mostly been above 1, indicating a healthy level of cash reserves to meet short-term liabilities.
Overall, based on these liquidity ratios, Biogen Inc appears to have a strong liquidity position, with ample current assets, liquid assets, and cash reserves to meet its short-term financial obligations.
See also:
Biogen Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 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 | 98.77 | 117.14 | 122.76 | 127.79 |
The cash conversion cycle of Biogen Inc has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 383.96 days, indicating that it takes around 383.96 days for Biogen to convert its investments in inventory and other resources into cash received from sales. This was a decrease from the previous quarter, where the cycle was 453.97 days, showing some improvement in efficiency.
Looking at the trend over the past year, the cash conversion cycle has varied significantly, with highs and lows observed in different quarters. The highest cycle was recorded in Q3 2023 at 453.97 days, indicating a longer period of time in which Biogen's funds were tied up in the operating cycle. On the other hand, the lowest cycle was seen in Q2 2023 at 218.94 days, suggesting a more efficient management of cash conversion during that period.
Overall, there has been some inconsistency in Biogen's cash conversion cycle performance, with fluctuations observed from quarter to quarter. It is essential for the company to focus on optimizing its working capital management to ensure a more stable and efficient cash conversion cycle, which can positively impact its overall financial health and performance in the long run.