Alexion Pharmaceuticals (Alexion Pharmaceuticals) Operating Income : $2,947 Mil (TTM As of Mar. 2021)

View and export this data going back to 1996. Start your Free Trial

What is Alexion Pharmaceuticals Operating Income?

Alexion Pharmaceuticals's Operating Income for the three months ended in Mar. 2021 was $826 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2021 was $2,947 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Alexion Pharmaceuticals's Operating Income for the three months ended in Mar. 2021 was $826 Mil. Alexion Pharmaceuticals's Revenue for the three months ended in Mar. 2021 was $1,637 Mil. Therefore, Alexion Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2021 was 50.47%.

Good Sign:

Alexion Pharmaceuticals Inc operating margin is expanding. Margin expansion is usually a good sign.

Alexion Pharmaceuticals's 5-Year average Growth Rate for Operating Margin % was 15.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Alexion Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2021 was 19.10%. Alexion Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 was 84.31%.

Alexion Pharmaceuticals Operating Income Historical Data

The historical data trend for Alexion Pharmaceuticals'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.

Alexion Pharmaceuticals Operating Income Chart

Alexion Pharmaceuticals Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Operating Income

Get a 7-Day Free Trial

793.40

804.00

1,594.60

2,139.90

2,859.90

Alexion Pharmaceuticals Quarterly Data
	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21
Operating Income	Get a 7-Day Free Trial															738.60	703.50	770.80	647.00	825.90

Alexion Pharmaceuticals 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 Mar. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,947 Mil.

Alexion Pharmaceuticals (NAS:ALXN) Operating Income Explanation

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

Alexion Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	3303.6 * ( 1 - 18.82% )	/	( (13932	+	14144.9)	/ 2 )
=	2681.86248	/	14038.45
=	19.10 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	18103	-	1171.6	-	( 2999.4	-	max(0, 1624.7	-	5833	+	2999.4	))
=	13932

	Invested Capital		(Q: Mar. 2021 )
=	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	))
=	18650.2	-	1036	-	( 3469.3	-	max(0, 1426.2	-	6452.6	+	3469.3	))
=	14144.9

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) data.

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

Alexion Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2021 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2021 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Dec. 2020		Q: Mar. 2021
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	2518.8	/	( ( (1461.9 + max(1351.3, 0))	+	(1461.6 + max(1700.3, 0)) )	/	2 )
=	2518.8	/	( ( 2813.2	+	3161.9 )	/	2 )
=	2518.8	/	2987.55
=	84.31 %

where Working Capital is:

	Working Capital		(Q: Dec. 2020 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1409.3	+	775.7	+	648.6)	-	(1171.6	+	0	+	310.7)
=	1351.3

	Working Capital		(Q: Mar. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1473	+	803.9	+	706.4)	-	(1036	+	0	+	247)
=	1700.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2021) EBIT data.

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

Alexion Pharmaceuticals's Operating Margin % for the quarter that ended in Mar. 2021 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2021 )	/	Revenue (Q: Mar. 2021 )
	=	825.9	/	1636.5
	=	50.47 %

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.

Alexion Pharmaceuticals Operating Income Related Terms

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

Alexion Pharmaceuticals (Alexion Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Alexion Pharmaceuticals Inc (NAS:ALXN) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

121 Seaport Boulevard, Boston, MA, USA, 02210

Website

https://www.alexion.com

Alexion Pharmaceuticals specializes in developing and marketing drugs for rare, life-threatening medical conditions. Its blockbuster product, Soliris, is approved for paroxysmal nocturnal hemoglobinuria (PNH), atypical hemolytic uremic syndrome (aHUS), generalized myasthenia gravis (gMG), and neuromyelitis optica spectrum disorder (NMOSD). Next-generation Ultomiris is approved in PNH and aHUS. Strensiq and Kanuma target ultrarare metabolic diseases. Alexion's pipeline targets rare diseases with high unmet need in hematology, nephrology, metabolic diseases, neurology, cardiology, and other areas.

Executives

Daniel Bazarko	officer: SVP, Controller, CAO	C/O ALEXION PHARMACEUTICALS, INC. 121 SEAPORT BOULEVARD BOSTON MA 02210
Tanisha Carino	officer: EVP & CCAO	C/O ALEXION PHARMACEUTICALS, INC., 121 SEAPORT BOULEVARD, BOSTON MA 02210
Anne-marie Law	officer: EVP, Chief Experience Officer	C/O BAXALTA INCORPORATED, 1200 LAKESIDE DRIVE, BANNOCKBURN IL 60015
Brian Goff	officer: EVP & Chief Commercial Officer	C/O ALEXION PHARMACEUTICALS, INC, 100 COLLEGE STREET, NEW HAVEN CT 06510
John J Orloff	officer: EVP, Research & Development	C/O BAXALTA INCORPORATED 1200 LAKESIDE DRIVE BANNOCKBURN IL 60015
Indrani Lall Franchini	officer: EVP, Chief Compliance Officer	C/O ALEXION PHARMACEUTICALS, INC, 100 COLLEGE STREET, NEW HAVEN CT 06510
John T Mollen	director	176 SOUTH STREET HOPKINTON MA 01748
David R Brennan	director	C/O INSMED INCORPORATED, 10 FINDERNE AVENUE, BRIDGEWATER NJ 08807
Baker Bros. Advisors (gp) Llc	director	860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014
L.p. 667,	director	860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014
Andreas Rummelt	director	C/O ALEXION PHARMACEUTICALS, INC. 352 KNOTTER DRIVE CHESHIRE CT 06410
Francois Nader	director	550 HILLS DRIVE, BEDMINSTER NJ 07921
Baker Brothers Life Sciences Lp	director	860 WASHINGTON STREET, 3RD FLOOR, NEW YORK NY 10014
Deborah Dunsire	director	C/O ULTRAGENYX PHARMACEUTICAL INC., 60 LEVERONI COURT, NOVATO CA 94949
Judith A Reinsdorf	director	C. R. BARD, INC., 730 CENTRAL AVENUE, MURRAY HILL NJ 07974