Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Amgen Inc. (NASDAQ:AMGN)

Analysis of Debt

Advanced level

Total Debt (Carrying Amount)

Amgen Inc., balance sheet: debt

US$ in millions

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total borrowings (carrying amount) 32,986  29,903  33,929  35,342  34,596 

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)

Microsoft Excel LibreOffice Calc
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

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12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Interest expenses, net 1,262  1,289  1,392  1,304  1,260 
Interest costs capitalized —  —  —  —  — 
Interest costs 1,262  1,289  1,392  1,304  1,260 

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

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 7,264  7,842  8,394  1,979  7,722 
Add: Income tax expense 869  1,296  1,151  7,618  1,441 
Add: Interest expense, net 1,262  1,289  1,392  1,304  1,260 
Earnings before interest and tax (EBIT) 9,395  10,427  10,937  10,901  10,423 
 
Interest costs 1,262  1,289  1,392  1,304  1,260 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 7.44 8.09 7.86 8.36 8.27
Adjusted interest coverage ratio (with capitalized interest)2 7.44 8.09 7.86 8.36 8.27

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.