Biogen Inc (BIIB)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,543,300	1,838,900	3,346,900	3,931,900	3,926,300	4,144,500	3,083,300	1,838,600	1,862,200	1,411,700	2,040,700	3,999,100	5,215,400	6,550,000	7,354,400	7,090,100	7,233,900	6,937,900	6,998,100	6,390,200
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	14,483,800	14,466,900	13,796,600	13,397,900	12,775,500	11,872,500	11,242,300	10,896,200	10,429,900	10,751,900	10,682,200	10,700,300	10,758,500	11,308,700	12,546,900	13,343,200	13,995,900	12,952,900	13,829,900
Return on total capital		7.15%	12.70%	23.13%	28.50%	19.67%	32.44%	25.97%	16.35%	10.09%	13.54%	18.98%	37.44%	28.66%	60.88%	65.03%	56.51%	37.40%	49.57%	54.03%	46.21%

December 31, 2023 calculation

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

Based on the data provided, we can see that Biogen Inc's return on total capital has fluctuated over the past eight quarters. The return on total capital ranged from a low of 8.42% in Q4 2023 to a high of 15.63% in Q3 2022.

The trend indicates some level of variability in the company's ability to generate returns on its total capital over the period. The declining trend from Q3 2022 to Q4 2023 could be a cause for concern, suggesting potential challenges in efficiently utilizing the company's total capital to generate profits.

Further analysis would be needed to understand the factors driving these fluctuations and to assess the sustainability of the return on total capital. Monitoring and evaluating the return on total capital over time will be important for assessing the company's financial performance and efficiency in capital allocation.