Biogen Inc (BIIB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.25 | 0.00 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.00 | 0.32 | 0.00 | 0.00 | 0.00 | 0.30 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.31 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.00 | 0.00 | 0.41 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.46 | 0.00 | 0.00 | 0.00 | 0.49 | 0.00 | 0.00 | 0.00 | 0.69 | 0.00 | 0.00 | 0.00 | 0.70 | 0.00 | 0.00 | 0.00 | 0.45 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Biogen Inc as reflected in the table show the company's ability to meet its long-term financial obligations and its overall financial risk.
The Debt-to-assets ratio has been relatively stable around 0.26 over the past eight quarters, indicating that 26% of Biogen's assets are financed by debt. This suggests that the company has a conservative level of debt relative to its total assets.
The Debt-to-capital ratio has also been relatively consistent, hovering around 0.32, which implies that 32% of the company's capital structure is comprised of debt. This ratio highlights the proportion of funding derived from debt in relation to both debt and equity.
The Debt-to-equity ratio depicts the relationship between debt and shareholders' equity, showing how much of the company is funded by debt relative to equity. Biogen's Debt-to-equity ratio has ranged from 0.43 to 0.65 over the past two years, indicating fluctuations in the level of financial leverage employed by the company.
The Financial leverage ratio, which combines both debt and equity components, has varied between 1.74 and 2.11 during the same period. This ratio signifies the overall financial risk and the extent to which the company is using debt to finance its operations.
Overall, the stable and relatively moderate levels of debt as reflected in these solvency ratios suggest that Biogen Inc has maintained a prudent approach to managing its long-term financial obligations and mitigating financial risk over the past two years.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.25 | 7.99 | 14.79 | 16.18 | 15.92 | 16.06 | 11.66 | 7.21 | 7.34 | 5.80 | 8.74 | 16.46 | 23.43 | 30.81 | 36.39 | 38.58 | 38.60 | 36.36 | 36.07 | 32.27 |
Biogen Inc's interest coverage ratio has shown a consistent increasing trend over the past eight quarters, indicating the company's improving ability to meet its interest obligations from its earnings before interest and taxes (EBIT). In Q1 2023, the interest coverage ratio stood at 36.77, representing a significant improvement compared to the same period in the previous year, where the ratio was 10.49. This suggests that Biogen's earnings are comfortably covering its interest expenses, providing a strong buffer against financial risks. The upward trend in the interest coverage ratio reflects a positive financial performance and a lower financial risk for the company.