Biogen Inc (BIIB)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -228,500 | -68,000 | -1,041,200 | -1,093,300 | -1,178,000 | -1,366,500 | -84,100 | -500,900 | 178,800 | 1,404,900 | 1,810,500 | 2,477,500 | 2,840,700 | 1,923,000 | 2,215,400 | 3,704,200 | 4,550,200 | 6,658,500 | 7,378,400 | 7,359,800 |
| Total assets | US$ in thousands | 28,049,300 | 28,313,200 | 26,804,100 | 26,567,600 | 26,844,800 | 28,193,200 | 25,156,800 | 24,598,400 | 24,554,100 | 24,854,200 | 25,081,400 | 23,614,400 | 23,877,300 | 23,806,700 | 24,470,400 | 23,854,700 | 24,618,900 | 24,934,100 | 25,511,800 | 26,119,200 |
| Operating ROA | -0.81% | -0.24% | -3.88% | -4.12% | -4.39% | -4.85% | -0.33% | -2.04% | 0.73% | 5.65% | 7.22% | 10.49% | 11.90% | 8.08% | 9.05% | 15.53% | 18.48% | 26.70% | 28.92% | 28.18% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-228,500K ÷ $28,049,300K
= -0.81%
Operating Return on Assets (Operating ROA) is a key financial indicator that measures a company's ability to generate operating income from its assets. For Biogen Inc, the Operating ROA has shown a declining trend over the years based on the provided data.
From March 31, 2020, to June 30, 2022, Biogen Inc maintained a relatively high Operating ROA, ranging from around 7% to almost 29%. This indicates that the company was efficiently utilizing its assets to generate operating income during this period.
However, starting from September 30, 2022, the Operating ROA began to decrease significantly. The ratio fell to single digits and eventually turned negative by March 31, 2023. This decline suggests that Biogen Inc was not generating sufficient operating income relative to its asset base, potentially indicating operational inefficiencies or challenges.
The negative trend in Operating ROA continued through the end of 2024, with the ratio fluctuating around zero or negative percentages. This further underscores the challenges faced by Biogen Inc in effectively utilizing its assets to generate operating profits.
In conclusion, the declining trend in Biogen Inc's Operating ROA highlights potential concerns regarding the company's operational efficiency and profitability. It would be important for the company to address these issues and improve its asset utilization to enhance financial performance in the future.
Peer comparison
Dec 31, 2024