Biogen Inc (BIIB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 46.97% | 43.65% | 50.27% | 48.41% | 86.57% |
| Operating profit margin | -2.36% | -11.98% | -8.01% | 25.87% | 33.84% |
| Pretax margin | 19.70% | 13.18% | 36.17% | 14.65% | 37.14% |
| Net profit margin | 16.87% | 11.81% | 29.95% | 14.17% | 29.76% |
Biogen Inc's profitability ratios have exhibited some fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue retained after accounting for cost of goods sold, declined from 86.57% in 2020 to 43.65% in 2023, before slightly recovering to 46.97% in 2024. This downward trend suggests a potential decrease in the efficiency of Biogen's production processes and/or pricing strategy.
Similarly, the operating profit margin, reflecting the percentage of revenue left after deducting operating expenses, decreased from 33.84% in 2020 to -11.98% in 2023, indicating that Biogen faced challenges in controlling its operating costs relative to revenue generation. However, the margin improved to -2.36% in 2024, although it still remained negative.
The pretax margin, representing the percentage of revenue remaining after accounting for all expenses except taxes, showed fluctuations over the years, with a significant drop in 2021 followed by a recovery in 2022 and 2024. This could indicate varying levels of efficiency in managing non-operating expenses and income.
Lastly, the net profit margin, which indicates the percentage of revenue that translates into actual profit after all expenses, declined from 29.76% in 2020 to 11.81% in 2023, before showing a slight improvement to 16.87% in 2024. This trend suggests that Biogen's ability to convert revenue into net income weakened in 2023 but demonstrated some recovery in 2024.
Overall, Biogen Inc's profitability ratios reflect a mixed performance characterized by varying levels of efficiency in managing costs, generating revenue, and converting revenue into profit over the analyzed period. The company may need to focus on cost control measures, operational efficiency, and revenue optimization strategies to enhance its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.81% | -4.39% | -3.32% | 11.90% | 18.48% |
| Return on assets (ROA) | 5.82% | 4.33% | 12.41% | 6.52% | 16.25% |
| Return on total capital | 10.14% | 7.15% | 19.67% | 10.09% | 28.66% |
| Return on equity (ROE) | 9.76% | 7.85% | 22.74% | 14.28% | 37.39% |
Biogen Inc's profitability ratios exhibit a mixed performance over the five-year period from 2020 to 2024.
- Operating return on assets (Operating ROA): The Operating ROA shows a decreasing trend from 18.48% in 2020 to -4.39% in 2023, indicating a decline in the company's ability to generate operating profits from its assets. Although there is a slight improvement to -0.81% in 2024, the negative values suggest inefficiency in utilizing assets to generate operating profits.
- Return on assets (ROA): The ROA also fluctuates over the years, with a peak of 16.25% in 2020, followed by a decline to 4.33% in 2023, and then a slight increase to 5.82% in 2024. This indicates that the company's overall profitability in relation to its total assets has been inconsistent.
- Return on total capital: The return on total capital peaked at 28.66% in 2020, but subsequently decreased to 7.15% in 2023 before a slight recovery to 10.14% in 2024. This ratio suggests that the efficiency of generating returns from both equity and debt capital has fluctuated during the period.
- Return on equity (ROE): The ROE shows a similar pattern, starting at 37.39% in 2020 and declining to 7.85% in 2023, before a small increase to 9.76% in 2024. This indicates the company's ability to generate profits relative to its shareholders' equity has been inconsistent.
Overall, the profitability ratios of Biogen Inc reflect a period of mixed performance, with fluctuations in profitability and efficiency in utilizing assets and capital to generate returns over the five-year period.