Hello, The below is the full assignment. I have attached the annual reports from XXXXXXXXXXas will be needed for the ratios. Also, if it is of any help, the direct competitor for Biogen is Bristol...

Biogen ROE and Overall Profitability Analysis
Financial Ratio Analysis
    Ratio
    As Reported
    
    Biogen
    Bristol Myers Squi
    Industry Average
    
    2017
    2018
    2019
    2019
    Latest
    Overall Profitability
     
     
     
     
     
    ROE Decomposition Traditional
    29.19
    34.33
    44.14
    6.69
    21.51
    ROE Decomposition Alternative
    20.15
    34.00
    44.14
    6.65
    -
    Income Statement Ratios
     
     
     
    
    
    Net profit Margin
    20.69
    32.93
    40.96
    13.15
    13.97
    Gross Profit Margin
    86.72
    86.50
    86.40
    69.1031
    67.53
    NOPAT Margin
    2783.02
    4465.91
    5898.18
    4166.56
    -
    EBITDA Margin
    52%
    51%
    54%
    26%
    16.79
    Calculation of ROE Decomposition Alternative
    Equity Multiplie
    1.88
    1.94
    2.04
    2.51
    
    Total Assets
    23652.6
    25288.9
    27234.3
    129944
    
    Total Shareholders’ Equity
    12598.1
    13031.6
    13339.1
    51698
    
    Asset Turnove
    0.52
    0.53
    0.53
    0.20
    
Ratio Analysis
The ROE decomposition traditional is simply the return on equity of Biogen. It is calculated by dividing the Net Income by the shareholders equity. It is actually the measure of the business profitability with relation to the equity of the company. The higher is the ROE the better it is for a company. For Biogen it can be observed that the ROE traditional is much higher when compared to its competitor Bristol Myers Squi
. For Biogen the ROE is 44.14 whereas for Bristol Myers Squi
it is reflected at 6.69 only. It depicts how much more profitable Biogen is compared to Bristol Myers Squi
in the year 2019.

ROE Decomposition Alternative is same as ROE Traditional which is used to measure the profitability of the company but it is not calculated only by deploying the shareholders’ equity but also the profit margin, asset turnover and equity multiplier. To calculate the ROE Decomposition Alternative we have multiplied profit margin x asset turnover X equity multiplier to a
ive at ROE Alternative. As per the above chart we can observe that the ROE Decomposition Alternative of Biogen is 44.14 when compared to Bristol Myers Squi
which is the competitor of Biogen at 6.65 only. Hence, based on this rate we can state that the ROE Decomposition Alternative of Biogen is far better and generating huge profitability for the company.
We could find only the industry average of pharmaceutical industry based on the ROE Decomposition Traditional which illustrates the industry average at 21.51 but still lower than Biogen. Thus, it can be stated that Biogen is far...