Stock Analysis on Net
Stock Analysis on Net

Regeneron Pharmaceuticals Inc. (NASDAQ:REGN)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Regeneron Pharmaceuticals Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 667,900 968,500 1,429,800 199,000 444,600
State 7,700 7,400 6,200 1,200 1,900
Foreign 407,900 290,900 (38,400) 21,400 (2,600)
Current tax expense 1,083,500 1,266,800 1,397,600 221,600 443,900
Federal (834,500) (797,700) (423,200) 109,000 (132,000)
State (6,500) (2,700) (600) (2,000) (1,700)
Foreign 3,200 54,000 276,700 (31,400) 3,100
Deferred tax expense (benefit) (837,800) (746,400) (147,100) 75,600 (130,600)
Income tax expense 245,700 520,400 1,250,500 297,200 313,300

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Regeneron Pharmaceuticals Inc. current tax expense decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Regeneron Pharmaceuticals Inc. deferred tax expense (benefit) decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Regeneron Pharmaceuticals Inc. income tax expense decreased from 2021 to 2022 and from 2022 to 2023.

Effective Income Tax Rate (EITR)

Regeneron Pharmaceuticals Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Taxation of non-U.S. operations -6.60% -5.50% -2.80% -1.80% -1.00%
Stock-based compensation -4.60% -2.90% -2.40% -7.60% -2.50%
Income tax credits -3.20% -2.00% -1.00% -2.80% -4.60%
Foreign-derived intangible income deduction -0.30% -1.00% -1.40% 0.00% -1.60%
Sale of non-inventory related assets between foreign subsidiaries 0.00% 0.00% 0.00% -0.80% 0.00%
Other permanent differences -0.40% 1.10% 0.00% -0.20% 1.60%
Effective income tax rate 5.90% 10.70% 13.40% 7.80% 12.90%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Regeneron Pharmaceuticals Inc. effective income tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

Regeneron Pharmaceuticals Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Capitalized research and development expenses 1,728,200 845,300 — — —
Deferred compensation 413,600 416,200 406,600 436,600 519,700
Accrued expenses 214,100 235,600 262,100 139,800 75,900
Fixed assets and intangible assets 154,800 227,600 257,500 140,500 192,000
Tax attribute carryforwards 88,700 41,300 6,100 — —
Other 26,400 15,900 10,800 — —
Deferred revenue — — 57,300 44,600 22,000
Deferred tax assets 2,625,800 1,781,900 1,000,400 761,500 809,600
Valuation allowance — — — — (7,000)
Deferred tax assets, net of valuation allowance 2,625,800 1,781,900 1,000,400 761,500 802,600
Unrealized gains on investments (50,400) (58,200) (123,500) — —
Other — — — (42,800) (11,200)
Deferred tax liabilities (50,400) (58,200) (123,500) (42,800) (11,200)
Net deferred tax assets (liabilities) 2,575,400 1,723,700 876,900 718,700 791,400

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Regeneron Pharmaceuticals Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Regeneron Pharmaceuticals Inc. deferred tax assets, net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Regeneron Pharmaceuticals Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Regeneron Pharmaceuticals Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 2,575,400 1,723,700 876,900 858,900 824,200
Deferred tax liabilities — — — 140,200 32,800

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Regeneron Pharmaceuticals Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.

Adjustments to Financial Statements: Removal of Deferred Taxes

Regeneron Pharmaceuticals Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 33,080,200 29,214,500 25,434,800 17,163,300 14,805,200
Less: Noncurrent deferred tax assets, net 2,575,400 1,723,700 876,900 858,900 824,200
Total assets (adjusted) 30,504,800 27,490,800 24,557,900 16,304,400 13,981,000
Adjustment to Total Liabilities
Total liabilities (as reported) 7,107,100 6,550,500 6,666,000 6,138,000 3,715,500
Less: Noncurrent deferred tax liabilities, net — — — 140,200 32,800
Total liabilities (adjusted) 7,107,100 6,550,500 6,666,000 5,997,800 3,682,700
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 25,973,100 22,664,000 18,768,800 11,025,300 11,089,700
Less: Net deferred tax assets (liabilities) 2,575,400 1,723,700 876,900 718,700 791,400
Stockholders’ equity (adjusted) 23,397,700 20,940,300 17,891,900 10,306,600 10,298,300
Adjustment to Net Income
Net income (as reported) 3,953,600 4,338,400 8,075,300 3,513,200 2,115,800
Add: Deferred income tax expense (benefit) (837,800) (746,400) (147,100) 75,600 (130,600)
Net income (adjusted) 3,115,800 3,592,000 7,928,200 3,588,800 1,985,200

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Regeneron Pharmaceuticals Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Regeneron Pharmaceuticals Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 30.14% 35.64% 50.25% 41.35% 26.91%
Adjusted net profit margin 23.75% 29.51% 49.33% 42.24% 25.25%
Total Asset Turnover
Reported total asset turnover 0.40 0.42 0.63 0.50 0.53
Adjusted total asset turnover 0.43 0.44 0.65 0.52 0.56
Financial Leverage
Reported financial leverage 1.27 1.29 1.36 1.56 1.34
Adjusted financial leverage 1.30 1.31 1.37 1.58 1.36
Return on Equity (ROE)
Reported ROE 15.22% 19.14% 43.03% 31.86% 19.08%
Adjusted ROE 13.32% 17.15% 44.31% 34.82% 19.28%
Return on Assets (ROA)
Reported ROA 11.95% 14.85% 31.75% 20.47% 14.29%
Adjusted ROA 10.21% 13.07% 32.28% 22.01% 14.20%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Regeneron Pharmaceuticals Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Regeneron Pharmaceuticals Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Regeneron Pharmaceuticals Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Regeneron Pharmaceuticals Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Regeneron Pharmaceuticals Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Regeneron Pharmaceuticals Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 3,953,600 4,338,400 8,075,300 3,513,200 2,115,800
Revenues 13,117,200 12,172,900 16,071,700 8,497,100 7,863,400
Profitability Ratio
Net profit margin1 30.14% 35.64% 50.25% 41.35% 26.91%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 3,115,800 3,592,000 7,928,200 3,588,800 1,985,200
Revenues 13,117,200 12,172,900 16,071,700 8,497,100 7,863,400
Profitability Ratio
Adjusted net profit margin2 23.75% 29.51% 49.33% 42.24% 25.25%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × 3,953,600 ÷ 13,117,200 = 30.14%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 3,115,800 ÷ 13,117,200 = 23.75%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Regeneron Pharmaceuticals Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenues 13,117,200 12,172,900 16,071,700 8,497,100 7,863,400
Total assets 33,080,200 29,214,500 25,434,800 17,163,300 14,805,200
Activity Ratio
Total asset turnover1 0.40 0.42 0.63 0.50 0.53
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenues 13,117,200 12,172,900 16,071,700 8,497,100 7,863,400
Adjusted total assets 30,504,800 27,490,800 24,557,900 16,304,400 13,981,000
Activity Ratio
Adjusted total asset turnover2 0.43 0.44 0.65 0.52 0.56

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 13,117,200 ÷ 33,080,200 = 0.40

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 13,117,200 ÷ 30,504,800 = 0.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Regeneron Pharmaceuticals Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 33,080,200 29,214,500 25,434,800 17,163,300 14,805,200
Stockholders’ equity 25,973,100 22,664,000 18,768,800 11,025,300 11,089,700
Solvency Ratio
Financial leverage1 1.27 1.29 1.36 1.56 1.34
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 30,504,800 27,490,800 24,557,900 16,304,400 13,981,000
Adjusted stockholders’ equity 23,397,700 20,940,300 17,891,900 10,306,600 10,298,300
Solvency Ratio
Adjusted financial leverage2 1.30 1.31 1.37 1.58 1.36

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 33,080,200 ÷ 25,973,100 = 1.27

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 30,504,800 ÷ 23,397,700 = 1.30

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Regeneron Pharmaceuticals Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 3,953,600 4,338,400 8,075,300 3,513,200 2,115,800
Stockholders’ equity 25,973,100 22,664,000 18,768,800 11,025,300 11,089,700
Profitability Ratio
ROE1 15.22% 19.14% 43.03% 31.86% 19.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 3,115,800 3,592,000 7,928,200 3,588,800 1,985,200
Adjusted stockholders’ equity 23,397,700 20,940,300 17,891,900 10,306,600 10,298,300
Profitability Ratio
Adjusted ROE2 13.32% 17.15% 44.31% 34.82% 19.28%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 3,953,600 ÷ 25,973,100 = 15.22%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 3,115,800 ÷ 23,397,700 = 13.32%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Regeneron Pharmaceuticals Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 3,953,600 4,338,400 8,075,300 3,513,200 2,115,800
Total assets 33,080,200 29,214,500 25,434,800 17,163,300 14,805,200
Profitability Ratio
ROA1 11.95% 14.85% 31.75% 20.47% 14.29%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 3,115,800 3,592,000 7,928,200 3,588,800 1,985,200
Adjusted total assets 30,504,800 27,490,800 24,557,900 16,304,400 13,981,000
Profitability Ratio
Adjusted ROA2 10.21% 13.07% 32.28% 22.01% 14.20%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 3,953,600 ÷ 33,080,200 = 11.95%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 3,115,800 ÷ 30,504,800 = 10.21%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Regeneron Pharmaceuticals Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.