Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Biogen Inc., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.83 | 1.84 | 1.72 | 2.32 | 2.34 | |
| Quick ratio | 1.34 | 1.32 | 1.43 | 1.83 | 1.78 | |
| Cash ratio | 0.88 | 0.70 | 0.92 | 1.07 | 1.10 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Biogen Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Biogen Inc. quick ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Biogen Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Current Ratio
Biogen Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 7,856,500) | 6,887,100) | 8,381,800) | 7,640,900) | 7,873,300) | |
| Current liabilities | 4,298,200) | 3,742,200) | 4,863,800) | 3,295,200) | 3,368,200) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.83 | 1.84 | 1.72 | 2.32 | 2.34 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.79 | 0.84 | 3.18 | — | — | |
| Amgen Inc. | 1.59 | 1.81 | 1.44 | — | — | |
| Bristol-Myers Squibb Co. | 1.52 | 1.58 | 1.60 | — | — | |
| Danaher Corp. | 1.43 | 1.86 | 5.19 | — | — | |
| Eli Lilly & Co. | 1.23 | 1.40 | 1.16 | — | — | |
| Gilead Sciences Inc. | 1.27 | 1.40 | 3.10 | — | — | |
| Johnson & Johnson | 1.35 | 1.21 | 1.26 | — | — | |
| Merck & Co. Inc. | 1.27 | 1.02 | 1.24 | — | — | |
| Pfizer Inc. | 1.40 | 1.35 | 0.88 | — | — | |
| Regeneron Pharmaceuticals Inc. | 3.56 | 3.63 | 3.67 | — | — | |
| Thermo Fisher Scientific Inc. | 1.50 | 2.13 | 1.92 | — | — | |
| Vertex Pharmaceuticals Inc. | 4.46 | 4.33 | 3.61 | — | — | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.36 | 1.37 | — | — | — | |
| Current Ratio, Industry | ||||||
| Health Care | 1.21 | 1.20 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,856,500 ÷ 4,298,200 = 1.83
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Biogen Inc. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Quick Ratio
Biogen Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,261,400) | 1,331,200) | 2,913,700) | 1,224,600) | 1,573,800) | |
| Marketable securities | 1,541,100) | 1,278,900) | 1,562,200) | 2,313,400) | 2,115,200) | |
| Accounts receivable, net | 1,549,400) | 1,913,800) | 1,880,500) | 1,958,500) | 1,787,000) | |
| Due from anti-CD20 therapeutic programs | 412,300) | 413,500) | 590,200) | 526,900) | 532,600) | |
| Total quick assets | 5,764,200) | 4,937,400) | 6,946,600) | 6,023,400) | 6,008,600) | |
| Current liabilities | 4,298,200) | 3,742,200) | 4,863,800) | 3,295,200) | 3,368,200) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.34 | 1.32 | 1.43 | 1.83 | 1.78 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.56 | 0.60 | 2.91 | — | — | |
| Amgen Inc. | 1.06 | 1.30 | 1.01 | — | — | |
| Bristol-Myers Squibb Co. | 1.20 | 1.28 | 1.26 | — | — | |
| Danaher Corp. | 0.89 | 1.36 | 4.68 | — | — | |
| Eli Lilly & Co. | 0.80 | 0.85 | 0.68 | — | — | |
| Gilead Sciences Inc. | 0.95 | 1.08 | 2.86 | — | — | |
| Johnson & Johnson | 1.04 | 0.91 | 0.94 | — | — | |
| Merck & Co. Inc. | 0.73 | 0.58 | 0.78 | — | — | |
| Pfizer Inc. | 1.00 | 0.78 | 0.50 | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.98 | 2.86 | 2.81 | — | — | |
| Thermo Fisher Scientific Inc. | 1.00 | 1.63 | 1.19 | — | — | |
| Vertex Pharmaceuticals Inc. | 4.04 | 4.02 | 3.33 | — | — | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.98 | 0.98 | — | — | — | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.89 | 0.89 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,764,200 ÷ 4,298,200 = 1.34
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Biogen Inc. quick ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Cash Ratio
Biogen Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 2,261,400) | 1,331,200) | 2,913,700) | 1,224,600) | 1,573,800) | |
| Marketable securities | 1,541,100) | 1,278,900) | 1,562,200) | 2,313,400) | 2,115,200) | |
| Total cash assets | 3,802,500) | 2,610,100) | 4,475,900) | 3,538,000) | 3,689,000) | |
| Current liabilities | 4,298,200) | 3,742,200) | 4,863,800) | 3,295,200) | 3,368,200) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.88 | 0.70 | 0.92 | 1.07 | 1.10 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | 0.28 | 0.30 | 2.56 | — | — | |
| Amgen Inc. | 0.66 | 0.91 | 0.69 | — | — | |
| Bristol-Myers Squibb Co. | 0.78 | 0.83 | 0.84 | — | — | |
| Danaher Corp. | 0.32 | 0.82 | 4.04 | — | — | |
| Eli Lilly & Co. | 0.26 | 0.29 | 0.21 | — | — | |
| Gilead Sciences Inc. | 0.56 | 0.65 | 2.50 | — | — | |
| Johnson & Johnson | 0.70 | 0.59 | 0.54 | — | — | |
| Merck & Co. Inc. | 0.34 | 0.30 | 0.47 | — | — | |
| Pfizer Inc. | 0.73 | 0.47 | 0.26 | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.45 | 1.33 | 1.53 | — | — | |
| Thermo Fisher Scientific Inc. | 0.33 | 1.00 | 0.39 | — | — | |
| Vertex Pharmaceuticals Inc. | 3.51 | 3.55 | 2.85 | — | — | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.58 | 0.59 | — | — | — | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.50 | 0.51 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,802,500 ÷ 4,298,200 = 0.88
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Biogen Inc. cash ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |