Biogen Inc (BIIB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.25 | 0.27 | 0.32 | 0.30 |
| Debt-to-capital ratio | 0.21 | 0.31 | 0.33 | 0.41 | 0.41 |
| Debt-to-equity ratio | 0.27 | 0.46 | 0.49 | 0.69 | 0.70 |
| Financial leverage ratio | 1.68 | 1.81 | 1.83 | 2.19 | 2.30 |
Biogen Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. Over the five-year period from 2020 to 2024, the trend in the Debt-to-assets ratio shows a gradual decrease, from 0.30 in 2020 to 0.16 in 2024. This suggests that Biogen has been reducing its reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio has also decreased from 0.41 in 2020 to 0.21 in 2024, indicating a decreasing proportion of debt in the company's capital structure.
The Debt-to-equity ratio followed a similar trend, decreasing from 0.70 in 2020 to 0.27 in 2024. This indicates that Biogen has been relying more on equity financing relative to debt, which can be seen as a positive sign of financial stability.
The Financial leverage ratio has also declined from 2.30 in 2020 to 1.68 in 2024. This indicates that the company has been gradually reducing its financial leverage and dependency on debt to support its operations.
Overall, the decreasing trend in these solvency ratios suggests that Biogen Inc has been strengthening its financial position and solvency over the five-year period.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 8.61 | 6.25 | 15.92 | 7.34 | 23.44 |
Based on the provided data, Biogen Inc's interest coverage ratio has shown fluctuations over the years. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
- As of December 31, 2020, Biogen Inc had a strong interest coverage ratio of 23.44, indicating that the company's operating income was 23.44 times higher than its interest expenses. This suggests a comfortable position to meet its interest obligations.
- However, by December 31, 2021, the interest coverage ratio decreased significantly to 7.34, signaling a potential decrease in the company's ability to cover its interest expenses from its operating income. This could imply increased financial risk.
- There was a recovery by December 31, 2022, with the interest coverage ratio improving to 15.92, indicating a better ability to cover interest payments compared to the previous year.
- Subsequently, by December 31, 2023, the interest coverage ratio dropped to 6.25, once again suggesting a reduced ability to cover interest expenses with operating income.
- As of December 31, 2024, the interest coverage ratio improved to 8.61, although it remained below the levels seen in 2020 and 2022.
Overall, the analysis of Biogen Inc's interest coverage ratios over the years indicates varying levels of financial leverage and ability to meet interest obligations. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.