Biogen Inc (BIIB)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,161,100	3,046,900	1,556,100	4,000,600	5,888,500
Total assets	US$ in thousands	26,844,800	24,554,100	23,877,300	24,618,900	27,234,300
ROA		4.33%	12.41%	6.52%	16.25%	21.62%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,161,100K ÷ $26,844,800K
= 4.33%

Biogen Inc's return on assets (ROA) has exhibited a fluctuating trend over the past five years. The ROA decreased significantly from 21.62% in 2019 to 16.25% in 2020, indicating a decline in the company's ability to generate profits relative to its total assets. However, there was a further reduction in ROA to 6.52% in 2021. This decrease could signal potential inefficiencies in asset utilization or declining profitability during that period.

On the other hand, there was a notable improvement in ROA to 12.41% in 2022, suggesting enhancements in asset management efficiency or profitability. The latest data for 2023 shows a further increase in ROA to 4.33%, although it remains substantially lower than previous years. This decrease might be worth investigating to determine the underlying reasons for the company's reduced profitability relative to its asset base.

Overall, Biogen Inc's ROA trend indicates varying levels of effectiveness in utilizing its assets to generate earnings over the past five years, with recent years showing mixed results and potential areas for improvement.