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Biogen (HAM:IDP) Return-on-Tangible-Equity

: 25.66% (As of Mar. 2023)
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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Biogen's annualized net income for the quarter that ended in Mar. 2023 was €1,449 Mil. Biogen's average shareholder tangible equity for the quarter that ended in Mar. 2023 was €5,647 Mil. Therefore, Biogen's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 was 25.66%.

The historical rank and industry rank for Biogen's Return-on-Tangible-Equity or its related term are showing as below:

HAM:IDP' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 52.9   Med: 83.4   Max: 142.39
Current: 64.06

During the past 13 years, Biogen's highest Return-on-Tangible-Equity was 142.39%. The lowest was 52.90%. And the median was 83.40%.

HAM:IDP's Return-on-Tangible-Equity is ranked better than
93.37% of 966 companies
in the Drug Manufacturers industry
Industry Median: 5.54 vs HAM:IDP: 64.06

Biogen Return-on-Tangible-Equity Historical Data

The historical data trend for Biogen's Return-on-Tangible-Equity 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 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 108.66 144.10 127.06 67.14 71.44

Biogen Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 39.37 116.79 102.96 39.40 25.66

Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Biogen Return-on-Tangible-Equity Distribution

For the Drug Manufacturers industry and Healthcare sector, Biogen's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Biogen's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.



Biogen Return-on-Tangible-Equity Calculation

Biogen's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2022 )  (A: Dec. 2021 )(A: Dec. 2022 )
=2876.274/( (2578.713+5474.068 )/ 2 )
=2876.274/4026.3905
=71.44 %

Biogen's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2023 )  (Q: Dec. 2022 )(Q: Mar. 2023 )
=1449.196/( (5474.068+5820.221)/ 2 )
=1449.196/5647.1445
=25.66 %

* 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.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2023) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Biogen  (HAM:IDP) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Biogen Return-on-Tangible-Equity Related Terms

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


Biogen (HAM:IDP) Business Description

Biogen logo
Address
225 Binney Street, Cambridge, MA, USA, 02142
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.

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