Analysis of Investments
Paying user area
Try for free
Amgen Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Amgen Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Amgen Inc., adjustment to net income
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|
| Net income (as reported) | ||||||
| Add: Gains (losses) on available-for-sale securities | ||||||
| Net income (adjusted) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data reveals distinct trends in reported and adjusted net income over the five-year period ending in 2024. Both measures follow an almost identical pattern throughout the timeframe, indicating consistency in adjustments made to reported figures.
- Net Income Trend
- The reported net income starts at a high point of 7,264 million USD in 2020 and experiences a notable decline in 2021 to 5,893 million USD. It then shows a recovery phase with an increase to 6,552 million USD in 2022 and continues a modest upward trend to 6,717 million USD in 2023. However, a significant drop occurs in 2024, with net income falling to 4,090 million USD, which represents the lowest level in the five-year span.
- Adjusted Net Income
- The adjusted net income mirrors the reported net income closely, starting at 7,243 million USD in 2020, declining to 5,892 million USD in 2021, then rebounding to 6,552 million USD in 2022 and 6,717 million USD in 2023, followed by a sharp decline to 4,090 million USD in 2024. This close alignment suggests that the adjustments made to net income figures are minimal and do not significantly deviate from reported earnings.
- Insight on Yearly Changes
- The sharp decrease from 2020 to 2021 may indicate challenges faced during that period, followed by a gradual recovery over the next two years. The steep decrease in 2024 points to potentially adverse events or changes impacting profitability that year.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Amgen Inc., adjusted profitability ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Net Profit Margin
- The reported and adjusted net profit margins exhibit a declining trend over the five-year period. Starting at approximately 30% in 2020, the margins decreased steadily to 24.25% in 2021, then showed a slight recovery to around 26.42% in 2022, followed by another decline to 24.96% in 2023. In 2024, there was a significant drop to 12.77%, indicating a substantial reduction in profitability relative to revenue.
- Return on Equity (ROE)
- The reported and adjusted ROE figures display considerable volatility during the period examined. ROE started at 77.2% in 2020, increased notably to 87.96% in 2021, and then surged dramatically to 178.97% in 2022, suggesting an unusually high level of profitability relative to shareholder equity that year. Subsequently, ROE decreased to 107.78% in 2023, and further declined to 69.59% in 2024. Despite the downward trend in the last two years, ROE remains at a considerably high level compared to the beginning of the period.
- Return on Assets (ROA)
- The reported and adjusted ROA metrics show a consistent decline from 2020 through 2024. Starting at 11.54% in 2020, ROA fell to 9.63% in 2021, slightly increased to 10.06% in 2022, then declined more sharply to 6.91% in 2023, and continued decreasing to 4.45% in 2024. This trend indicates a diminishing efficiency in generating profits from total assets over time.
- General Observations
- The adjusted values mirror the reported figures exactly across all metrics and periods, indicating no differences between reported and investment-adjusted data. The data reveals a pattern of declining profitability margins and asset efficiency, despite occasional surges in equity returns. The sharp fall in net profit margin and ROA in the last year is of particular note, potentially signalling operational challenges or changes in asset utilization efficiency. The elevated but decreasing ROE may relate to changes in financial leverage or equity base dynamics.
Amgen Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 Net profit margin = 100 × Net income ÷ Product sales
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × ÷ =
- Net Income Trends
- The reported net income exhibited a decline from US$7,264 million in 2020 to US$5,893 million in 2021, representing a significant decrease. This was followed by a recovery phase with an increase to US$6,552 million in 2022 and a further rise to US$6,717 million in 2023. However, in 2024, the net income dropped sharply to US$4,090 million, indicating a notable downturn in financial performance during the final recorded period.
- Adjusted Net Income Patterns
- The adjusted net income closely mirrored the reported net income figures across all years, with the same values observed. This suggests minimal adjustments between reported and adjusted figures and implies consistency in earnings quality and accounting practices throughout the period.
- Net Profit Margin Dynamics
- Reported net profit margin decreased from 29.97% in 2020 to 24.25% in 2021, indicating a reduction in profitability relative to revenue. In 2022, the margin improved to 26.42%, followed by a slight decrease to 24.96% in 2023. The margin then fell sharply to 12.77% in 2024, reflecting a substantial decline in profitability and a less efficient conversion of sales to profit in the most recent year.
- Adjusted Net Profit Margin Observations
- The adjusted net profit margin values were identical to the reported margins across all years, reinforcing the inference that adjustments did not significantly affect the margin calculations. This alignment supports a consistent profit recognition approach and reliable profitability metrics.
- Overall Insights
- Over the five-year period, the data reveals a general pattern of declining profitability and income, with some recovery phases in the middle years. The marked decrease in both net income and profit margin in the latest year, 2024, signals potential challenges or adverse conditions impacting the company’s financial performance. The close alignment between reported and adjusted figures suggests transparency and minimal one-time adjustments affecting earnings. Continuous monitoring of these trends is advisable to understand the underlying causes and to assess future performance prospects.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × ÷ =
- Net Income Trends
- The reported net income shows a decline from 7264 million US dollars in 2020 to 5893 million in 2021, indicating a drop in profitability. It then increases to 6552 million in 2022 and 6717 million in 2023, reflecting a recovery trend. However, in 2024, there is a significant decrease to 4090 million, suggesting a notable setback in earnings.
- Adjusted Net Income Trends
- The adjusted net income closely follows the pattern of reported net income across all years, matching exactly in each reported period. This alignment indicates minimal adjustments between reported and adjusted figures, implying consistency in the reporting practices or minimal extraordinary items affecting the net income.
- Return on Equity (ROE) Trends
- Reported ROE starts at 77.2% in 2020 and increases substantially to 87.96% in 2021. It then spikes dramatically to 178.97% in 2022, before declining to 107.78% in 2023 and further down to 69.59% in 2024. This pattern indicates significant volatility in the returns generated on shareholder equity, with a peak in 2022 followed by a downward correction.
- Adjusted ROE Trends
- The adjusted ROE mirrors the reported ROE values exactly throughout the years, indicating that adjustments have little to no impact on the equity return figures. This consistency suggests that the factors driving ROE are stable and not influenced by accounting adjustments.
- Overall Analysis
- The financial data reflects fluctuations in profitability and return on equity over the observed period. Both net income and ROE exhibit volatility, with peaks in 2022 followed by decreases in 2024. The close alignment between reported and adjusted figures throughout indicates transparency and suggests that reported results are a reliable indicator of operational performance. The sharp decline in net income and ROE in 2024 points to potential challenges or adverse events impacting financial performance in that year.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
2024 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × ÷ =
- Net Income Trends
- The reported net income demonstrates a decreasing trend over the five-year period. Starting at $7,264 million in 2020, it declined to $5,893 million in 2021. A recovery is noted in 2022 and 2023 with net income rising to $6,552 million and $6,717 million, respectively. However, a significant drop occurred in 2024, bringing net income down to $4,090 million, the lowest level in the observed period.
- Adjusted net income closely mirrors the reported net income, indicating minimal differences between reported and adjusted figures and confirming the trend of decline and partial recovery followed by a sharp decrease in the final year.
- Return on Assets (ROA) Analysis
- The reported ROA shows a downward trajectory over the period. It started at 11.54% in 2020, decreased to 9.63% in 2021, and slightly increased to 10.06% in 2022. Subsequently, ROA dropped more markedly, reaching 6.91% in 2023 and further declining to 4.45% in 2024.
- The adjusted ROA follows the same pattern as the reported ROA, reinforcing the trend of decreasing asset profitability despite a minor uptick in 2022. The decline in ROA suggests a reduction in asset efficiency or profitability relative to the asset base over time.
- Overall Insights
- The financial data indicate a period of volatility with an overall downward trend in both profitability and asset returns from 2020 through 2024. Short-term recoveries in 2022 and 2023 were insufficient to counteract the general decline, culminating in a pronounced reduction in net income and ROA in 2024. The close alignment of reported and adjusted figures implies that the observed trends are robust and not significantly affected by accounting adjustments.