Biomarin Pharmaceutical Inc (BMRN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 78.31% | 76.62% | 74.33% | 71.24% | 78.61% |
| Operating profit margin | 6.66% | 7.23% | -4.49% | -2.38% | -5.98% |
| Pretax margin | 7.94% | 7.23% | -4.11% | -2.69% | -5.64% |
| Net profit margin | 7.06% | 6.84% | -3.50% | 46.84% | -1.42% |
Over the past five years, Biomarin Pharmaceutical Inc has shown a consistent and healthy gross profit margin, with an increasing trend from 2019 to 2023, reaching 78.31%. This indicates the company effectively controls its cost of goods sold relative to its revenue.
The operating profit margin has fluctuated over the same period, with positive margins since 2020, indicating the company's ability to generate profits from its core operations. However, the margins have been relatively low compared to the gross profit margin, suggesting that operating expenses are significant.
The pretax margin has also shown variability but has been positive since 2020, implying that Biomarin has effectively managed its operating expenses and interest payments. The positive trend indicates an improving financial performance in terms of profitability before accounting for taxes.
The net profit margin has been positive since 2020, with a notable increase in 2021 and a further improvement in 2023 to 7.06%. Despite the negative margin in 2021, the company has shown strong recovery in profitability in recent years. This indicates that Biomarin has been able to effectively manage its taxes and other expenses to generate profits for its shareholders.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.31% | 2.35% | -1.37% | -0.74% | -2.14% |
| Return on assets (ROA) | 2.45% | 2.22% | -1.07% | 14.60% | -0.51% |
| Return on total capital | 3.71% | 2.91% | -1.12% | -0.38% | -1.98% |
| Return on equity (ROE) | 3.39% | 3.08% | -1.50% | 20.83% | -0.76% |
Based on the profitability ratios of Biomarin Pharmaceutical Inc over the past five years, we can observe the following trends:
1. Operating return on assets (Operating ROA) has been relatively stable, showing a slight decrease from 2.35% in 2022 to 2.31% in 2023. This ratio indicates the company's ability to generate operating income from its assets.
2. Return on assets (ROA) also shows consistency, with a slight increase from 2.22% in 2022 to 2.45% in 2023. This metric reflects the company's overall profitability in relation to its total assets.
3. Return on total capital has shown an increasing trend, with a notable improvement from 2.91% in 2022 to 3.71% in 2023. This ratio measures the company's ability to generate returns from its total invested capital.
4. Return on equity (ROE) has also demonstrated a consistent performance, with a modest increase from 3.08% in 2022 to 3.39% in 2023. ROE indicates how efficiently the company is utilizing shareholder equity to generate profits.
In summary, Biomarin Pharmaceutical Inc has maintained stable to improving profitability ratios over the past five years, indicating efficient utilization of assets and capital to generate returns for shareholders. It will be important to continue monitoring these ratios to ensure sustained profitability and long-term financial health.