Biogen Inc (BIIB)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,632,200	1,161,100	3,046,900	1,556,100	4,000,600
Revenue	US$ in thousands	9,675,900	9,835,600	10,173,400	10,981,700	13,444,600
Net profit margin		16.87%	11.81%	29.95%	14.17%	29.76%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $1,632,200K ÷ $9,675,900K
= 16.87%

To analyze Biogen Inc's net profit margin based on the provided data:

1. The net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted.

2. As per the data provided:
- On December 31, 2020, Biogen Inc had a net profit margin of 29.76%, reflecting that for every dollar of revenue generated, the company retained $0.2976 in profit.
- By December 31, 2021, the net profit margin declined to 14.17%, indicating that the company's profitability decreased significantly, with only $0.1417 of profit from every dollar of revenue.
- Subsequently, on December 31, 2022, the net profit margin improved to 29.95%, suggesting a successful rebound in profitability.
- However, by December 31, 2023, the net profit margin dropped to 11.81%, indicating another period of reduced profitability.
- As of December 31, 2024, the net profit margin increased to 16.87%, showcasing a partial recovery in profitability.

3. The fluctuations in the net profit margin over the years suggest varying levels of efficiency in managing costs and generating profits for Biogen Inc. It is essential for the company to focus on maintaining a healthy net profit margin to ensure sustainable growth and shareholder value.

In conclusion, Biogen Inc's net profit margin has experienced fluctuations over the years, highlighting the importance of closely monitoring and managing profitability to drive long-term financial success.