Biogen Inc (BIIB)

Return on assets (ROA)

		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
Total assets	US$ in thousands	28,049,300	26,844,800	24,554,100	23,877,300	24,618,900
ROA		5.82%	4.33%	12.41%	6.52%	16.25%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,632,200K ÷ $28,049,300K
= 5.82%

Based on the data provided, Biogen Inc's return on assets (ROA) has shown some fluctuations over the years.

In December 31, 2020, the company had an ROA of 16.25%, indicating that for every dollar of assets, Biogen generated a return of 16.25 cents. This was a favorable ratio, suggesting efficient asset utilization.

However, by December 31, 2021, Biogen's ROA decreased to 6.52%, signaling a decline in profitability relative to its assets. This may indicate challenges in generating earnings from its asset base.

There was a notable improvement in ROA by December 31, 2022, as it climbed to 12.41%, indicating a better utilization of assets to generate profits.

Subsequently, there was a decline in ROA to 4.33% by December 31, 2023, which may raise concerns about the company's ability to generate returns from its assets efficiently.

By December 31, 2024, the ROA improved slightly to 5.82%, but it remained below the levels seen in 2020 and 2022.

Overall, Biogen's ROA has shown variability over the years, with some periods of strong performance but also periods of decline. It is important for the company to focus on optimizing its asset utilization to improve profitability in the future.