Biogen Inc (BIIB)

Interest coverage

		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
Interest expense	US$ in thousands	246,900	246,600	253,600	222,500	187,400
Interest coverage		6.25	15.92	7.34	23.44	38.60

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,543,300K ÷ $246,900K
= 6.25

The interest coverage ratio for Biogen Inc has experienced fluctuations over the past five years. In 2019, the interest coverage ratio was relatively high at 103.21, indicating that Biogen had more than enough operating income to cover its interest expenses. However, there was a significant decline in 2020 to 24.66, which still indicated a healthy ability to cover interest payments. In 2021, the interest coverage ratio decreased further to 11.72, suggesting a tighter ability to cover interest expenses. The ratio saw a slight improvement in 2022 to 18.46 but did not return to the levels seen in 2019. Unfortunately, there is no data available for 2023 to complete the analysis for this year. Overall, the trend of decreasing interest coverage ratios from 2019 to 2022 may indicate potential concerns about Biogen's ability to meet its interest obligations in those years.