Biogen Inc (BIIB)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-228,500	-1,178,000	-815,000	2,840,700	4,550,100
Revenue	US$ in thousands	9,675,900	9,835,600	10,173,400	10,981,700	13,444,600
Operating profit margin		-2.36%	-11.98%	-8.01%	25.87%	33.84%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-228,500K ÷ $9,675,900K
= -2.36%

Biogen Inc's operating profit margin has shown a declining trend over the years based on the provided data. In December 31, 2020, the operating profit margin stood at a healthy 33.84%, indicating that the company was generating significant profits from its operations. However, by December 31, 2021, the operating profit margin had decreased to 25.87%, showing a slight but notable decline.

The trend took a more significant turn in the following years, with the operating profit margin falling into negative territory. By December 31, 2022, the operating profit margin plummeted to -8.01%, indicating that the company's operating expenses were surpassing its operating income. This negative trend continued into December 31, 2023, where the operating profit margin declined further to -11.98%, highlighting a concerning deterioration in profitability.

However, there was a slight improvement by December 31, 2024, as the operating profit margin recovered to -2.36%. Despite this improvement, the company still operated with a negative profit margin, which may suggest ongoing challenges in managing operating expenses relative to revenue generation.

Overall, the substantial decline in Biogen Inc's operating profit margin over the years signals a need for the company to reassess its operational efficiency and profitability strategies to reverse the negative trend and enhance financial performance.