Biogen Inc (BIIB)

Financial leverage ratio

		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
Total assets	US$ in thousands	26,844,800	28,193,200	25,156,800	24,598,400	24,554,100	24,854,200	25,081,400	23,614,400	23,877,300	23,806,700	24,470,400	23,854,700	24,618,900	24,934,100	25,511,800	26,119,200	27,234,300	27,484,000	26,287,600	26,445,500
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
Financial leverage ratio		1.81	1.95	1.74	1.78	1.83	1.95	2.11	2.10	2.19	2.28	2.28	2.23	2.30	2.32	2.26	2.08	2.04	1.96	2.03	1.91

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $26,844,800K ÷ $14,799,400K
= 1.81

The financial leverage ratio of Biogen Inc has shown some fluctuations over the past eight quarters, ranging from 1.74 to 2.11. The ratio compares the company's total assets to its total equity and indicates the proportion of a company's assets that are financed through debt.

A higher financial leverage ratio typically suggests that the company is relying more on debt to finance its operations, which can increase the level of financial risk. On the other hand, a lower ratio indicates a lower level of debt relative to equity, which can be viewed as a positive sign of financial stability.

In the case of Biogen Inc, the ratio has been consistently above 1.7, indicating that the company has been relying more on debt to finance its assets. The peak ratio of 2.11 in Q2 2022 may have raised concerns about the company's financial risk, while the subsequent decrease in the ratio in the following quarters suggests a potential effort to reduce debt levels.

It would be essential for stakeholders to monitor Biogen Inc's financial leverage ratio closely to assess the company's capital structure and evaluate its ability to meet debt obligations in the long term.