By analyzing existing forward indicators between Biogen and Kibush, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Kibush with a short position in Biogen. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Biogen has an asset utilization ratio of 46.47 percent. This suggests that the company is making $0.46 for each dollar of assets. An increasing asset utilization means that Biogen Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Biogen or Bristol is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Biogen's Liquidity
Biogen
financial leverage refers to using borrowed capital as a funding source to finance Biogen Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Biogen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Biogen's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Biogen's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Biogen's total debt and its cash.
Correlation Between Biogen and Bristol Myers Squibb
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Biogen together with similar or unrelated positions with a negative correlation. For example, you can also add Bristol Myers to your portfolio. If Bristol Myers is not perfectly correlated to Biogen it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Biogen, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Biogen and Bristol Myers in your portfolio? Please note if you are using this as a pair-trade strategy between Biogen and Bristol Myers, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BIIB and BMY for more information.
Breaking down the case for Biogen
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Biogen revenue. Based on the latest financial disclosure, Biogen Inc reported 10.63
B of revenue. This is 39.38% higher than that of the Healthcare sector and significantly higher than that of the
Drug Manufacturers—General industry. The revenue for all United States stocks is 12.67% lower than that of the entity. As for Kibush Capital we see revenue of 139.04
K, which is much higher than that of the Drug Manufacturers—General
| BIIB | 10.63 Billion | 100.0 |
| Sector | 0.0 | 0.0 |
| DLCR | 139,040 | 0.001308 |
Biogen implied volatility may change after the rise
Current mean deviation is at 1.48. Biogen Inc exhibits very low volatility with skewness of -0.67 and kurtosis of 0.74. However, we advise investors to further study Biogen Inc technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biogen's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Biogen's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Biogen
Whereas many of the other players under the drug manufacturers—general industry are still a bit expensive, Biogen may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Biogen as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Biogen.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Biogen Inc. Please refer to our
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