Biogen (NAS:BIIB) Operating Income

: $2,959 Mil (TTM As of Sep. 2022)

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Biogen's Operating Income for the three months ended in Sep. 2022 was $825 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2022 was $2,959 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Biogen's Operating Income for the three months ended in Sep. 2022 was $825 Mil. Biogen's Revenue for the three months ended in Sep. 2022 was $2,509 Mil. Therefore, Biogen's Operating Margin % for the quarter that ended in Sep. 2022 was 32.88%.

Warning Sign:

Biogen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -11.1%.

Biogen's 5-Year average Growth Rate for Operating Margin % was -11.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Biogen's annualized ROC % for the quarter that ended in Sep. 2022 was 16.57%. Biogen's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 was 124.16%.

Biogen Operating Income Historical Data

The historical data trend for Biogen's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Biogen Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Operating Income

5,529.40

6,000.80

7,035.70

4,446.30

2,808.00

Biogen Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Operating Income																778.40	585.50	641.70	907.00	824.70

Biogen Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,959 Mil.

Biogen (NAS:BIIB) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Biogen's annualized ROC % for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	3298.8 * ( 1 - 17.23% )	/	( (16621.8	+	16330.2)	/ 2 )
=	2730.41676	/	16476
=	16.57 %

where

	Invested Capital		(Q: Jun. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	25081.4	-	3736.7	-	( 4797.9	-	max(0, 5018	-	9740.9	+	4797.9	))
=	16621.8

	Invested Capital		(Q: Sep. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	24854.2	-	3612.9	-	( 4911.1	-	max(0, 3926.4	-	9765.8	+	4911.1	))
=	16330.2

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

2. Joel Greenblatt's definition of Return on Capital:

Biogen's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2022 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Sep. 2022 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Jun. 2022		Q: Sep. 2022
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	5724	/	( ( (3676.2 + max(924.8, 0))	+	(3690.9 + max(928.3, 0)) )	/	2 )
=	5724	/	( ( 4601	+	4619.2 )	/	2 )
=	5724	/	4610.1
=	124.16 %

where Working Capital is:

	Working Capital		(Q: Jun. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(2003.5	+	1294.2	+	1645.3)	-	(3736.7	+	0	+	281.5)
=	924.8

	Working Capital		(Q: Sep. 2022 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1984.2	+	1375	+	1495.5)	-	(3612.9	+	0	+	313.5)
=	928.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2022) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Biogen's Operating Margin % for the quarter that ended in Sep. 2022 is calculated as:

Operating Margin %	=	Operating Income (Q: Sep. 2022 )	/	Revenue (Q: Sep. 2022 )
	=	824.7	/	2508.5
	=	32.88 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Biogen Operating Income Related Terms

Thank you for viewing the detailed overview of Biogen's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Biogen (NAS:BIIB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Biogen Inc (NAS:BIIB) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

BIIB:Mexico IDP:Germany BIIB34:Brazil BIIB:Austria BIIB:Argentina

Address

225 Binney Street, Cambridge, MA, USA, 02142

Website

http://www.biogen.com

Biogen and Idec merged in 2003, combining forces to market Biogen's multiple sclerosis drug Avonex and Idec's cancer drug Rituxan. Today, Rituxan and next-generation antibody Gazyva are marketed via a collaboration with Roche. Biogen also markets novel MS drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is co-promoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with SOBI) were spun off as part of Bioverativ in 2017. Biogen has several drug candidates in phase 3 trials in neurology and neurodegenerative diseases and has launched Spinraza with partner Ionis. Aduhelm was approved as the firm's first Alzheimer's disease therapy in June 2021, followed by Leqembi in January 2023.

Executives

Christopher Viehbacher	director, officer: President and CEO	C/O AXCELLA HEALTH, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139
Nicole Murphy	officer: Head of Pharm Ops and Tech	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Rachid Izzar	officer: Head of Alzheimer's Disease	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Jones William D /ca/	director
Maria C Freire	director	C/O ALEXANDRIA REAL ESTATE EQUITIES, INC, 26 NORTH EUCLID AVENUE, PASADENA CA 91101
Michael R Mcdonnell	officer: EVP, Chief Financial Officer	C/O IQVIA HOLDINGS INC., 83 WOOSTER HEIGHTS ROAD, DANBURY CT 06810
Alphonse Galdes	officer: EVP Pharmaceutical Oper & Tech	BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
William A Hawkins	director	MEDTRONIC INC, 710 MEDTRONIC PKWY, MS LC310, MINNEAPOLIS MN 55432-5604
Jesus B Mantas	director	BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Robin Kramer	officer: VP, Chief Accounting Officer	999 VANDERBILT BEACH ROAD, 3RD FLOOR, NAPLES FL 34109
Daniel Karp	officer: EVP, Corporate Development	225 BINNEY STREET, CAMBRIDGE MA 02142
Jeffrey D Capello	officer: EVP & Chief Financial Officer	C/O NEOGEN CORP., 620 LESHER PLACE, LANSING MI 48912
Chirfi Guindo	officer: EVP Glob. Mkt Acc & Cust Innov	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Ginger Gregory	officer: EVP, Human Resources	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Jean-paul Kress	officer: EVP Pres Int'l & Global Hd GTO	215 FIRST STREET, SUITE 415, CAMBRIDGE MA 02142