Biogen Inc (BIIB)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	16,716,000	14,799,400	13,397,900	10,896,200	10,700,300
ROE		9.76%	7.85%	22.74%	14.28%	37.39%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,632,200K ÷ $16,716,000K
= 9.76%

Biogen Inc's return on equity (ROE) has experienced fluctuations over the years based on the provided data. In December 2020, the ROE stood at a robust 37.39%, indicating that for each dollar of shareholder equity, the company generated a return of 37.39%. However, there was a significant drop by the end of December 2021, with ROE decreasing to 14.28%. This decline suggests a decrease in the efficiency of utilizing shareholder equity to generate profits.

By December 2022, the ROE improved to 22.74%, showing a rebound in profitability relative to shareholder equity. Nonetheless, there was a notable decrease by the end of December 2023, as the ROE fell to 7.85%, indicating a decrease in profitability. The trend continued in December 2024, with the ROE slightly increasing to 9.76%, but still remaining below the levels seen in the earlier years.

Overall, Biogen Inc's ROE has exhibited variability, reflecting changes in the company's ability to generate profits from shareholder equity over the years. It is crucial for investors and stakeholders to monitor these fluctuations closely to assess the company's financial performance and operational efficiency.