Biogen Inc (BIIB)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.65% | 50.27% | 48.41% | 86.57% | 86.40% |
| Operating profit margin | -11.98% | -8.01% | 25.87% | 33.84% | 48.98% |
| Pretax margin | 13.18% | 36.17% | 14.65% | 37.14% | 49.01% |
| Net profit margin | 11.81% | 29.95% | 14.17% | 29.76% | 40.96% |
Biogen Inc's profitability ratios have shown a decreasing trend over the past five years. The gross profit margin has gradually declined from 86.40% in 2019 to 74.24% in 2023, indicating a decrease in the company's ability to generate profit after accounting for the cost of goods sold.
Similarly, the operating profit margin has also decreased, falling from 48.93% in 2019 to 18.62% in 2023. This suggests that Biogen's efficiency in controlling operating expenses and generating profits from its core business operations has weakened over the years.
The pretax margin, which indicates the company's profitability before accounting for taxes, has fluctuated significantly, with a sharp decline from 49.01% in 2019 to 13.18% in 2023. This may signal challenges in managing costs and optimizing revenue streams.
Lastly, the net profit margin, which shows the company's profitability after all expenses have been deducted, has decreased from 40.96% in 2019 to 11.81% in 2023. This declining trend reflects a reduced ability to convert revenue into net income, possibly due to rising expenses or other financial pressures.
In conclusion, Biogen Inc's profitability ratios have shown a downward trajectory in recent years, indicating potential challenges in maintaining and improving its overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -4.39% | -3.32% | 11.90% | 18.48% | 25.86% |
| Return on assets (ROA) | 4.33% | 12.41% | 6.52% | 16.25% | 21.62% |
| Return on total capital | 7.15% | 19.67% | 10.09% | 28.66% | 37.40% |
| Return on equity (ROE) | 7.85% | 22.74% | 14.28% | 37.39% | 44.13% |
Biogen Inc's profitability ratios indicate a fluctuating trend over the past five years. The operating return on assets (Operating ROA) declined from 25.83% in 2019 to 6.82% in 2023, reflecting a decrease in the company's ability to generate profit from its assets through operations.
The Return on Assets (ROA) also experienced variability, with a significant drop to 4.33% in 2023 compared to 21.62% in 2019. This indicates a lower overall profitability of the company relative to its total assets in the most recent year.
On the other hand, Return on Total Capital exhibited fluctuations, showing a decrease from 36.05% in 2019 to 8.42% in 2023. This ratio measures the profitability of both debt and equity capital invested in the company, suggesting a decline in profitability relative to the total capital employed.
Return on Equity (ROE) also demonstrated variability, with a notable decrease from 44.13% in 2019 to 7.85% in 2023. This ratio indicates the return generated for shareholders' equity, reflecting a lower profitability in the most recent year for Biogen Inc.
Overall, the profitability ratios for Biogen Inc show a mixed performance, with fluctuations in profitability metrics over the past five years. It is essential for stakeholders to further investigate the factors contributing to these fluctuations and assess the company's financial health and future prospects.