Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Biogen Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Biogen Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Biogen Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Biogen Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Biogen Inc. working capital turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Biogen Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Biogen Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Biogen Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Biogen Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Biogen Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Biogen Inc., inventory turnover 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) | ||||||
| Cost of sales, excluding amortization and impairment of acquired intangible assets | 2,109,700) | 1,805,200) | 1,955,400) | 1,816,300) | 1,630,000) | |
| Inventory | 1,351,500) | 1,068,600) | 804,200) | 929,900) | 902,700) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.56 | 1.69 | 2.43 | 1.95 | 1.81 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.58 | 4.65 | 4.10 | — | — | |
| Amgen Inc. | 1.58 | 1.58 | 1.22 | — | — | |
| Bristol-Myers Squibb Co. | 4.74 | 5.68 | 1.88 | — | — | |
| Danaher Corp. | 4.16 | 4.28 | 4.87 | — | — | |
| Eli Lilly & Co. | 1.88 | 1.38 | 1.48 | — | — | |
| Gilead Sciences Inc. | 4.08 | 2.72 | 5.07 | — | — | |
| Johnson & Johnson | 2.87 | 3.04 | 3.05 | — | — | |
| Merck & Co. Inc. | 2.29 | 2.45 | 2.36 | — | — | |
| Pfizer Inc. | 3.40 | 1.08 | 1.23 | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.25 | 0.58 | 0.55 | — | — | |
| Thermo Fisher Scientific Inc. | 3.88 | 4.02 | 4.22 | — | — | |
| Vertex Pharmaceuticals Inc. | 2.56 | 2.62 | 3.27 | — | — | |
| Inventory Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.11 | 2.63 | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Health Care | 10.19 | 9.16 | — | — | — | |
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
Inventory turnover = Cost of sales, excluding amortization and impairment of acquired intangible assets ÷ Inventory
= 2,109,700 ÷ 1,351,500 = 1.56
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Biogen Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Biogen Inc., receivables turnover 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) | ||||||
| Product, net | 8,846,900) | 10,692,200) | 11,379,800) | 10,886,800) | 10,354,700) | |
| Accounts receivable, net | 1,549,400) | 1,913,800) | 1,880,500) | 1,958,500) | 1,787,000) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.71 | 5.59 | 6.05 | 5.56 | 5.79 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.63 | 5.19 | 6.13 | — | — | |
| Amgen Inc. | 4.96 | 5.36 | 5.47 | — | — | |
| Bristol-Myers Squibb Co. | 5.65 | 5.72 | 3.89 | — | — | |
| Danaher Corp. | 6.36 | 5.51 | 5.61 | — | — | |
| Eli Lilly & Co. | 4.24 | 4.18 | 4.91 | — | — | |
| Gilead Sciences Inc. | 6.01 | 4.98 | 6.18 | — | — | |
| Johnson & Johnson | 6.14 | 6.08 | 5.67 | — | — | |
| Merck & Co. Inc. | 5.28 | 6.11 | 6.91 | — | — | |
| Pfizer Inc. | 7.08 | 5.28 | 5.93 | — | — | |
| Regeneron Pharmaceuticals Inc. | 2.66 | 2.07 | 2.94 | — | — | |
| Thermo Fisher Scientific Inc. | 4.92 | 5.61 | 5.87 | — | — | |
| Vertex Pharmaceuticals Inc. | 6.66 | 7.01 | 6.57 | — | — | |
| Receivables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.53 | 5.33 | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Health Care | 9.08 | 9.09 | — | — | — | |
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
Receivables turnover = Product, net ÷ Accounts receivable, net
= 8,846,900 ÷ 1,549,400 = 5.71
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Biogen Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Payables Turnover
Biogen Inc., payables turnover 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) | ||||||
| Cost of sales, excluding amortization and impairment of acquired intangible assets | 2,109,700) | 1,805,200) | 1,955,400) | 1,816,300) | 1,630,000) | |
| Accounts payable | 589,200) | 454,900) | 530,800) | 370,500) | 395,500) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.58 | 3.97 | 3.68 | 4.90 | 4.12 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 6.05 | 6.76 | 5.12 | — | — | |
| Amgen Inc. | 4.72 | 4.33 | 3.18 | — | — | |
| Bristol-Myers Squibb Co. | 3.37 | 4.34 | 3.30 | — | — | |
| Danaher Corp. | 4.48 | 4.79 | 5.23 | — | — | |
| Eli Lilly & Co. | 4.38 | 3.41 | 3.36 | — | — | |
| Gilead Sciences Inc. | 9.36 | 5.42 | 6.56 | — | — | |
| Johnson & Johnson | 2.70 | 2.99 | 3.23 | — | — | |
| Merck & Co. Inc. | 2.96 | 3.37 | 3.78 | — | — | |
| Pfizer Inc. | 5.53 | 2.02 | 2.42 | — | — | |
| Regeneron Pharmaceuticals Inc. | 4.32 | 2.36 | 1.87 | — | — | |
| Thermo Fisher Scientific Inc. | 6.83 | 7.45 | 7.40 | — | — | |
| Vertex Pharmaceuticals Inc. | 4.64 | 4.75 | 6.25 | — | — | |
| Payables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.23 | 3.86 | — | — | — | |
| Payables Turnover, Industry | ||||||
| Health Care | 7.62 | 7.51 | — | — | — | |
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
Payables turnover = Cost of sales, excluding amortization and impairment of acquired intangible assets ÷ Accounts payable
= 2,109,700 ÷ 589,200 = 3.58
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Biogen Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Working Capital Turnover
Biogen Inc., working capital turnover 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) | |
| Less: Current liabilities | 4,298,200) | 3,742,200) | 4,863,800) | 3,295,200) | 3,368,200) | |
| Working capital | 3,558,300) | 3,144,900) | 3,518,000) | 4,345,700) | 4,505,100) | |
| Product, net | 8,846,900) | 10,692,200) | 11,379,800) | 10,886,800) | 10,354,700) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 2.49 | 3.40 | 3.23 | 2.51 | 2.30 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | 0.98 | — | — | |
| Amgen Inc. | 3.37 | 2.55 | 3.96 | — | — | |
| Bristol-Myers Squibb Co. | 3.95 | 3.72 | 2.28 | — | — | |
| Danaher Corp. | 8.40 | 3.48 | 0.87 | — | — | |
| Eli Lilly & Co. | 8.33 | 4.93 | 11.54 | — | — | |
| Gilead Sciences Inc. | 8.54 | 5.30 | 1.08 | — | — | |
| Johnson & Johnson | 5.95 | 9.44 | 8.81 | — | — | |
| Merck & Co. Inc. | 7.62 | 109.83 | 8.90 | — | — | |
| Pfizer Inc. | 4.78 | 4.58 | — | — | — | |
| Regeneron Pharmaceuticals Inc. | 1.59 | 1.20 | 1.41 | — | — | |
| Thermo Fisher Scientific Inc. | 5.87 | 2.76 | 4.48 | — | — | |
| Vertex Pharmaceuticals Inc. | 1.02 | 0.99 | 1.19 | — | — | |
| Working Capital Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.86 | 5.33 | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 14.04 | 14.18 | — | — | — | |
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
Working capital turnover = Product, net ÷ Working capital
= 8,846,900 ÷ 3,558,300 = 2.49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Biogen Inc. working capital turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Average Inventory Processing Period
Biogen Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.56 | 1.69 | 2.43 | 1.95 | 1.81 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 234 | 216 | 150 | 187 | 202 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AbbVie Inc. | 65 | 79 | 89 | — | — | |
| Amgen Inc. | 231 | 231 | 300 | — | — | |
| Bristol-Myers Squibb Co. | 77 | 64 | 194 | — | — | |
| Danaher Corp. | 88 | 85 | 75 | — | — | |
| Eli Lilly & Co. | 194 | 265 | 247 | — | — | |
| Gilead Sciences Inc. | 89 | 134 | 72 | — | — | |
| Johnson & Johnson | 127 | 120 | 119 | — | — | |
| Merck & Co. Inc. | 159 | 149 | 155 | — | — | |
| Pfizer Inc. | 107 | 338 | 296 | — | — | |
| Regeneron Pharmaceuticals Inc. | 292 | 625 | 661 | — | — | |
| Thermo Fisher Scientific Inc. | 94 | 91 | 87 | — | — | |
| Vertex Pharmaceuticals Inc. | 143 | 139 | 112 | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 117 | 139 | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 36 | 40 | — | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.56 = 234
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Biogen Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Biogen Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.71 | 5.59 | 6.05 | 5.56 | 5.79 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 64 | 65 | 60 | 66 | 63 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AbbVie Inc. | 65 | 70 | 60 | — | — | |
| Amgen Inc. | 74 | 68 | 67 | — | — | |
| Bristol-Myers Squibb Co. | 65 | 64 | 94 | — | — | |
| Danaher Corp. | 57 | 66 | 65 | — | — | |
| Eli Lilly & Co. | 86 | 87 | 74 | — | — | |
| Gilead Sciences Inc. | 61 | 73 | 59 | — | — | |
| Johnson & Johnson | 59 | 60 | 64 | — | — | |
| Merck & Co. Inc. | 69 | 60 | 53 | — | — | |
| Pfizer Inc. | 52 | 69 | 62 | — | — | |
| Regeneron Pharmaceuticals Inc. | 137 | 177 | 124 | — | — | |
| Thermo Fisher Scientific Inc. | 74 | 65 | 62 | — | — | |
| Vertex Pharmaceuticals Inc. | 55 | 52 | 56 | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 66 | 69 | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 40 | 40 | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.71 = 64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Biogen Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Cycle
Biogen Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 234 | 216 | 150 | 187 | 202 | |
| Average receivable collection period | 64 | 65 | 60 | 66 | 63 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 298 | 281 | 210 | 253 | 265 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AbbVie Inc. | 130 | 149 | 149 | — | — | |
| Amgen Inc. | 305 | 299 | 367 | — | — | |
| Bristol-Myers Squibb Co. | 142 | 128 | 288 | — | — | |
| Danaher Corp. | 145 | 151 | 140 | — | — | |
| Eli Lilly & Co. | 280 | 352 | 321 | — | — | |
| Gilead Sciences Inc. | 150 | 207 | 131 | — | — | |
| Johnson & Johnson | 186 | 180 | 183 | — | — | |
| Merck & Co. Inc. | 228 | 209 | 208 | — | — | |
| Pfizer Inc. | 159 | 407 | 358 | — | — | |
| Regeneron Pharmaceuticals Inc. | 429 | 802 | 785 | — | — | |
| Thermo Fisher Scientific Inc. | 168 | 156 | 149 | — | — | |
| Vertex Pharmaceuticals Inc. | 198 | 191 | 168 | — | — | |
| Operating Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 183 | 208 | — | — | — | |
| Operating Cycle, Industry | ||||||
| Health Care | 76 | 80 | — | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 234 + 64 = 298
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Biogen Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Biogen Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.58 | 3.97 | 3.68 | 4.90 | 4.12 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 102 | 92 | 99 | 74 | 89 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AbbVie Inc. | 60 | 54 | 71 | — | — | |
| Amgen Inc. | 77 | 84 | 115 | — | — | |
| Bristol-Myers Squibb Co. | 108 | 84 | 110 | — | — | |
| Danaher Corp. | 82 | 76 | 70 | — | — | |
| Eli Lilly & Co. | 83 | 107 | 109 | — | — | |
| Gilead Sciences Inc. | 39 | 67 | 56 | — | — | |
| Johnson & Johnson | 135 | 122 | 113 | — | — | |
| Merck & Co. Inc. | 123 | 108 | 97 | — | — | |
| Pfizer Inc. | 66 | 181 | 151 | — | — | |
| Regeneron Pharmaceuticals Inc. | 84 | 155 | 195 | — | — | |
| Thermo Fisher Scientific Inc. | 53 | 49 | 49 | — | — | |
| Vertex Pharmaceuticals Inc. | 79 | 77 | 58 | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 86 | 95 | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 48 | 49 | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.58 = 102
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Biogen Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Cash Conversion Cycle
Biogen Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 234 | 216 | 150 | 187 | 202 | |
| Average receivable collection period | 64 | 65 | 60 | 66 | 63 | |
| Average payables payment period | 102 | 92 | 99 | 74 | 89 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 196 | 189 | 111 | 179 | 176 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AbbVie Inc. | 70 | 95 | 78 | — | — | |
| Amgen Inc. | 228 | 215 | 252 | — | — | |
| Bristol-Myers Squibb Co. | 34 | 44 | 178 | — | — | |
| Danaher Corp. | 63 | 75 | 70 | — | — | |
| Eli Lilly & Co. | 197 | 245 | 212 | — | — | |
| Gilead Sciences Inc. | 111 | 140 | 75 | — | — | |
| Johnson & Johnson | 51 | 58 | 70 | — | — | |
| Merck & Co. Inc. | 105 | 101 | 111 | — | — | |
| Pfizer Inc. | 93 | 226 | 207 | — | — | |
| Regeneron Pharmaceuticals Inc. | 345 | 647 | 590 | — | — | |
| Thermo Fisher Scientific Inc. | 115 | 107 | 100 | — | — | |
| Vertex Pharmaceuticals Inc. | 119 | 114 | 110 | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 97 | 113 | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 28 | 31 | — | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 234 + 64 – 102 = 196
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Biogen Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021. |