Biogen Inc (BIIB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,156,300 | 1,543,300 | 3,926,300 | 1,862,200 | 5,215,400 |
| Long-term debt | US$ in thousands | 4,547,200 | 6,788,200 | 6,567,300 | 7,567,300 | 7,500,000 |
| Total stockholders’ equity | US$ in thousands | 16,716,000 | 14,799,400 | 13,397,900 | 10,896,200 | 10,700,300 |
| Return on total capital | 10.14% | 7.15% | 19.67% | 10.09% | 28.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,156,300K ÷ ($4,547,200K + $16,716,000K)
= 10.14%
Biogen Inc's return on total capital has shown fluctuations over the years based on the provided data. In December 31, 2020, the return on total capital was at a robust 28.66%, indicating the company was able to generate a substantial return relative to the total capital invested. However, this figure declined significantly to 10.09% by December 31, 2021, suggesting a decrease in the company's efficiency in generating returns on its total capital.
By December 31, 2022, Biogen Inc was able to improve its return on total capital to 19.67%, signaling a better performance compared to the previous year. However, the ratio decreased again to 7.15% by December 31, 2023, indicating a decline in the company's ability to utilize its total capital effectively to generate returns.
By December 31, 2024, Biogen Inc's return on total capital improved slightly to 10.14%. It is crucial for the company to consistently monitor and enhance this ratio to ensure efficient utilization of its total capital and improve overall financial performance.
Peer comparison
Dec 31, 2024