Biogen Inc (BIIB)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,543,300	3,926,300	1,862,200	5,215,400	7,233,900
Long-term debt	US$ in thousands	6,788,200	6,567,300	7,567,300	7,500,000	6,000,000
Total stockholders’ equity	US$ in thousands	14,799,400	13,397,900	10,896,200	10,700,300	13,343,200
Return on total capital		7.15%	19.67%	10.09%	28.66%	37.40%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,543,300K ÷ ($6,788,200K + $14,799,400K)
= 7.15%

Biogen Inc's return on total capital has exhibited a declining trend over the past five years, from 36.05% in 2019 to 8.42% in 2023. This implies that the company's ability to generate profits from its total capital employed has decreased significantly. The decrease in the return on total capital suggests that Biogen may be experiencing challenges in efficiently utilizing its capital to generate returns for its stakeholders. Further analysis would be needed to identify the specific reasons behind this decline and to determine potential strategies for improvement.