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Biogen (Biogen) Operating Income : $1,884 Mil (TTM As of Mar. 2024)


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What is Biogen Operating Income?

Biogen's Operating Income for the three months ended in Mar. 2024 was $570 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $1,884 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Biogen's Operating Income for the three months ended in Mar. 2024 was $570 Mil. Biogen's Revenue for the three months ended in Mar. 2024 was $2,291 Mil. Therefore, Biogen's Operating Margin % for the quarter that ended in Mar. 2024 was 24.89%.

Warning Sign:

Biogen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -16.3%.

Biogen's 5-Year average Growth Rate for Operating Margin % was -16.30% 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 Mar. 2024 was 8.20%. Biogen's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 33.72%.


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 Operating Income Chart

Biogen Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7,035.70 4,446.30 2,808.00 2,901.90 1,831.10

Biogen Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial 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 517.30 621.30 234.80 457.70 570.00

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 Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,884 Mil.

* 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.


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 Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=2280 * ( 1 - 15.36% )/( (23684.1 + 23399.3)/ 2 )
=1929.792/23541.7
=8.20 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

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

Biogen's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=2136/( ( (3729.7 + max(2525.1, 0)) + (3703.4 + max(2709, 0)) )/ 2 )
=2136/( ( 6254.8 + 6412.4 )/ 2 )
=2136/6333.6
=33.72 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2100 + 2527.4 + 1182) - (2110.8 + 0 + 1173.5)
=2525.1

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1999.7 + 2516.8 + 1165.3) - (2093.9 + 0 + 878.9)
=2709

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

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

Biogen's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=570/2290.5
=24.89 %

* 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.

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 (Biogen) Business Description

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 multiple sclerosis drugs Plegridy, Tysabri, Tecfidera, and Vumerity. In Japan, Biogen's MS portfolio is copromoted by Eisai. Hemophilia therapies Eloctate and Alprolix (partnered with Sobi) were spun off as part of Bioverativ in 2017. Biogen's newer products include Spinraza (SMA, with partner Ionis), Leqembi (Alzheimers, with partner Eisai), Skyclarys (Friedreich's Ataxia, Reata), Zurzuvae (post-partum depression, Sage), and Qalsody (ALS, Ionis). Biogen has several drug candidates in phase 3 trials in neurology-related fields.
Executives
Priya Singhal officer: Head of Development C/O ZAFGEN, INC., 175 PORTLAND STREET 4TH FL, BOSTON MA 02114
Jane Grogan officer: Head of Research BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Susan Langer director BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Ginger Gregory officer: EVP, Human Resources C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Adam Keeney officer: Head of Corporate Development BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142
Christopher Viehbacher director, officer: President and CEO C/O AXCELLA HEALTH, INC., 840 MEMORIAL DRIVE, CAMBRIDGE MA 02139
Susan H Alexander officer: EVP, General Counsel C/O BIOGEN IDEC INC., 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
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
Chirfi Guindo officer: EVP Glob. Mkt Acc & Cust Innov C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Alfred Sandrock officer: Grp SVP, Chief Medical Officer 14 CAMBRIDGE CENTER, CAMBRIDGE MA 02142
Brian S Posner director 14 CAMBRIDGE CENTER, 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
Jesus B Mantas director BIOGEN INC., 225 BINNEY STREET, CAMBRIDGE MA 02142

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