Analysis of Debt
Total Debt (Carrying Amount)
Amgen Inc., balance sheet: debt
US$ in millions
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
Debt item | Description | The company |
---|---|---|
Total borrowings (carrying amount) | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | Amgen Inc.’s total debt decreased from 2018 to 2019 but then increased from 2019 to 2020 not reaching 2018 level. |
Total Debt (Fair Value)
Dec 31, 2020 | |
---|---|
Selected Financial Data (US$ in millions) | |
Total borrowings (fair value) | 39,400 |
Financial Ratio | |
Debt, fair value to carrying amount ratio | 1.19 |
Based on: 10-K (filing date: 2021-02-09).
Weighted-average Interest Rate on Debt
Weighted-average effective interest rate on debt: 3.68%
Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
---|---|---|---|
1.25% | 1,527 | 19 | |
2.70% | 500 | 14 | |
2.65% | 1,500 | 40 | |
3.63% | 750 | 27 | |
0.41% | 791 | 3 | |
2.25% | 750 | 17 | |
3.63% | 1,400 | 51 | |
1.90% | 500 | 10 | |
3.13% | 1,000 | 31 | |
2.00% | 916 | 18 | |
2.60% | 1,250 | 33 | |
5.50% | 649 | 36 | |
2.20% | 1,750 | 39 | |
3.20% | 1,000 | 32 | |
4.00% | 957 | 38 | |
2.45% | 1,250 | 31 | |
2.30% | 1,250 | 29 | |
6.38% | 478 | 30 | |
6.90% | 254 | 18 | |
6.40% | 333 | 21 | |
3.15% | 2,000 | 63 | |
5.75% | 373 | 21 | |
4.95% | 600 | 30 | |
5.15% | 729 | 38 | |
5.65% | 415 | 23 | |
5.38% | 185 | 10 | |
4.40% | 2,250 | 99 | |
6.30% | 1,415 | 89 | |
3.38% | 2,250 | 76 | |
5.60% | 3,541 | 198 | |
5.20% | 940 | 49 | |
Total | 33,503 | 1,231 | |
3.68% |
Based on: 10-K (filing date: 2021-02-09).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,231 ÷ 33,503 = 3.68%
Interest Costs Incurred
Amgen Inc., interest costs incurred
US$ in millions
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
Debt item | Description | The company |
---|---|---|
Interest expenses, net | Amount of the cost of borrowed funds accounted for as interest expense for debt. | Amgen Inc.’s interest expenses, net decreased from 2018 to 2019 and from 2019 to 2020. |
Interest costs capitalized | Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. | |
Interest costs | Total interest costs incurred during the period and either capitalized or charged against earnings. | Amgen Inc.’s interest costs decreased from 2018 to 2019 and from 2019 to 2020. |
Adjusted Interest Coverage Ratio
Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).
2020 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net
= 9,395 ÷ 1,262 = 7.44
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs
= 9,395 ÷ 1,262 = 7.44
Solvency ratio | Description | The company |
---|---|---|
Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | Amgen Inc.’s adjusted interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |