Biogen Inc (BIIB)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	28,049,300	26,844,800	24,554,100	23,877,300	24,618,900
Total stockholders’ equity	US$ in thousands	16,716,000	14,799,400	13,397,900	10,896,200	10,700,300
Financial leverage ratio		1.68	1.81	1.83	2.19	2.30

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $28,049,300K ÷ $16,716,000K
= 1.68

The financial leverage ratio of Biogen Inc has shown a decreasing trend over the past five years, declining from 2.30 in December 2020 to 1.68 in December 2024. This indicates that the company has been gradually reducing its reliance on debt financing compared to its equity. A lower financial leverage ratio suggests a stronger financial position and lower financial risk, as the company has a smaller proportion of debt in its capital structure relative to equity. This trend may signify prudent financial management and a more conservative approach to leverage, which could enhance the company's ability to weather economic downturns or market volatility. Overall, the decreasing trend in Biogen Inc's financial leverage ratio reflects a potentially positive shift towards a more balanced and sustainable capital structure.