Biogen Inc (BIIB)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.00 | 0.00 | 0.00 | 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 |
| Debt-to-capital ratio | 0.21 | 0.00 | 0.00 | 0.00 | 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 |
| Debt-to-equity ratio | 0.27 | 0.00 | 0.00 | 0.00 | 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 |
| Financial leverage ratio | 1.68 | 1.73 | 1.69 | 1.75 | 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 |
Biogen Inc's solvency ratios reflect a stable financial position over the analyzed periods. The Debt-to-assets ratio, indicating the proportion of debt to total assets, remained relatively low, with a slight increase from 0.00 in March 2020 to 0.16 in December 2024. This suggests that the company has been effectively managing its debt relative to its asset base.
Similarly, the Debt-to-capital ratio, measuring debt relative to total capital, also shows a consistent and conservative trend, fluctuating around the range of 0.21 to 0.41. This indicates that Biogen has maintained a balanced capital structure with a moderate level of debt in relation to its capital resources.
The Debt-to-equity ratio, revealing the extent of debt financing relative to equity, displayed a decreasing trend from 0.70 in December 2020 to 0.27 in December 2024, signaling a decreasing reliance on debt funding compared to equity.
The Financial leverage ratio, depicting the company's ability to meet its financial obligations, decreased steadily from 2.32 in September 2020 to 1.68 in December 2024. This reduction in financial leverage indicates a declining dependence on debt financing and an improvement in the company's ability to repay its debts.
Overall, the solvency ratios suggest that Biogen Inc has consistently maintained a healthy balance between debt and equity, indicating a strong financial position and prudent management of its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.61 | 8.28 | 5.95 | 6.22 | 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 |
The interest coverage ratio for Biogen Inc has shown a declining trend over the period from March 2020 to December 2024. The ratio started at a healthy level of 38.58 in March 2020, indicating the company's ability to cover its interest expenses nearly 39 times. However, the ratio steadily decreased to 8.61 by December 2024.
The declining trend in the interest coverage ratio raises concerns about Biogen's ability to meet its interest obligations with its operating income. A decreasing interest coverage ratio can indicate a higher financial risk for the company, as it may struggle to service its debt payments using its operating earnings.
It is crucial for stakeholders and investors to closely monitor Biogen's interest coverage ratio in the upcoming periods to assess the company's financial health and its ability to meet its debt obligations.