Biogen Inc (BIIB)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 28,049,300 | 26,844,800 | 24,554,100 | 23,877,300 | 24,618,900 |
| Operating ROA | -0.81% | -4.39% | -3.32% | 11.90% | 18.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-228,500K ÷ $28,049,300K
= -0.81%
Biogen Inc's operating return on assets (operating ROA) has fluctuated over the past five years. It stood at 18.48% as of December 31, 2020, indicating that the company generated $0.1848 in operating income for every dollar of assets it possessed. However, there was a notable decline in operating ROA to 11.90% by December 31, 2021, suggesting a decrease in efficiency in generating operating income relative to assets.
The trend continued with a significant decrease in operating ROA to -3.32% by December 31, 2022, and further declined to -4.39% by December 31, 2023. These negative figures indicate that Biogen Inc's operating income was insufficient to cover its asset base, thereby resulting in operating losses.
By December 31, 2024, the operating ROA improved slightly to -0.81%, but it still remained negative, indicating that Biogen Inc continued to face challenges in efficiently utilizing its assets to generate operating income. Overall, the decreasing trend in operating ROA over the years signals potential operational inefficiencies and financial difficulties that Biogen Inc may need to address to enhance its profitability and asset utilization in the future.
Peer comparison
Dec 31, 2024