Biogen (Biogen) Interest Coverage : 6.40 (As of Dec. 2023)

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Biogen Interest Coverage Definition

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 Dec. 2023 was $458 Mil. Biogen's Interest Expense for the three months ended in Dec. 2023 was $-72 Mil. Biogen's interest coverage for the quarter that ended in Dec. 2023 was 6.40. 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: 7.42 Med: 21.9 Max: 132.77
Current: 7.42

BIIB's Interest Coverage is ranked worse than
60.4% of 692 companies
in the Drug Manufacturers industry
Industry Median: 11.925 vs BIIB: 7.42

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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Biogen Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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37.54

19.98

11.07

11.77

7.42

Biogen Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															9.64	8.28	12.65	3.68	6.40

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 into.

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 ⁽¹⁾.

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. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Biogen's Interest Expense was $-247 Mil. Its Operating Income was $1,831 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,188 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1831.1	/	-246.9
	=	7.42

Biogen's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Biogen's Interest Expense was $-72 Mil. Its Operating Income was $458 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,188 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	457.7	/	-71.5
	=	6.40

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

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Biogen (Biogen) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Biogen Inc (NAS:BIIB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BIIB:Mexico 1BIIB:Italy IDP:Germany IDP:Germany IDP:Germany IDP:Germany BIIB34:Brazil BIIB:Austria BIIB:Argentina

Address

225 Binney Street, Cambridge, MA, USA, 02142

Website

https://www.biogen.com

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