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Biogen (NAS:BIIB) Interest Coverage

: 13.77 (As of Sep. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Biogen's Operating Income for the three months ended in Sep. 2022 was $825 Mil. Biogen's Interest Expense for the three months ended in Sep. 2022 was $-60 Mil. Biogen's interest coverage for the quarter that ended in Sep. 2022 was 13.77. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Biogen's Interest Coverage or its related term are showing as below:

BIIB' s Interest Coverage Range Over the Past 10 Years
Min: 11.07   Med: 33.73   Max: 132.77
Current: 11.46


BIIB's Interest Coverage is ranked worse than
57.4% of 655 companies
in the Drug Manufacturers industry
Industry Median: 17.68 vs BIIB: 11.46

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Biogen Interest Coverage Historical Data

The historical data trend for Biogen's Interest Coverage 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
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.05 29.91 37.54 19.98 11.07

Biogen Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Interest Coverage 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 11.74 8.83 9.71 13.78 13.77

Competitive Comparison

For the Drug Manufacturers - General subindustry, Biogen's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, Biogen's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Biogen's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.



Biogen Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Biogen's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Biogen's Interest Expense was $-254 Mil. Its Operating Income was $2,808 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,604 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*2808/-253.6
=11.07

Biogen's Interest Coverage for the quarter that ended in Sep. 2022 is calculated as

Here, for the three months ended in Sep. 2022, Biogen's Interest Expense was $-60 Mil. Its Operating Income was $825 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,634 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*824.7/-59.9
=13.77

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Biogen  (NAS:BIIB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Biogen Interest Coverage Related Terms

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


Biogen (NAS:BIIB) 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.
Executives
Murphy Nicole officer: Head of Pharm Ops and Tech BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Izzar Rachid officer: Head of Alzheimer's Disease BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Jones William D /ca/ director
Freire Maria C director C/O ALEXANDRIA REAL ESTATE EQUITIES, INC 26 NORTH EUCLID AVENUE PASADENA CA 91101
Mcdonnell Michael R officer: EVP, Chief Financial Officer C/O IQVIA HOLDINGS INC. 83 WOOSTER HEIGHTS ROAD DANBURY CT 06810
Galdes Alphonse officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Hawkins William A director MEDTRONIC INC 710 MEDTRONIC PKWY, MS LC310 MINNEAPOLIS MN 55432-5604
Mantas Jesus B director BIOGEN INC. 225 BINNEY STREET CAMBRIDGE MA 02142
Kramer Robin officer: VP, Chief Accounting Officer 999 VANDERBILT BEACH ROAD 3RD FLOOR NAPLES FL 34109
Karp Daniel officer: EVP, Corporate Development 225 BINNEY STREET CAMBRIDGE MA 02142
Capello Jeffrey D officer: EVP & Chief Financial Officer BOSTON SCIENTIFIC CORPORATION ONE BOSTON SCIENTIFIC PLACE NATICK MA 01760
Guindo Chirfi officer: EVP Glob. Mkt Acc & Cust Innov C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Gregory Ginger officer: EVP, Human Resources C/O BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142
Kress Jean-paul officer: EVP Pres Int'l & Global Hd GTO 215 FIRST STREET, SUITE 415 CAMBRIDGE MA 02142
Mckenzie Paul officer: EVP Pharmaceutical Oper & Tech BIOGEN INC. 225 BINNEY ST. CAMBRIDGE MA 02142

Biogen (NAS:BIIB) Headlines

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