Common-Size Income Statement
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
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Amgen Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 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).
The common-size income statement reveals several noteworthy trends between 2021 and 2025. Product sales are consistently represented as 100% of revenue, serving as the base for all other calculations. A significant fluctuation in cost of sales is observed, impacting gross profit and overall profitability. Operating income and net income exhibit volatility throughout the period, influenced by changes in expenses and other income/expenses.
- Gross Profit
- Gross profit from product sales initially increased from 73.44% in 2021 to 74.17% in 2022, before declining substantially to 59.85% in 2024. It partially recovered to 65.75% in 2025. This decline correlates with a marked increase in the cost of sales, particularly in 2023 and 2024, suggesting potential pressures on input costs or production efficiency. The recovery in 2025 indicates some mitigation of these pressures.
- Operating Expenses
- Research and development expenses remained relatively stable as a percentage of product sales, fluctuating between 17.78% and 19.83% over the period, with a notable increase to 20.69% in 2025. Selling, general and administrative expenses also showed relative stability, decreasing from 22.09% in 2021 to 20.06% in 2025. However, ‘Other’ expenses experienced significant volatility, increasing from -0.80% to -3.73% in 2025, potentially warranting further investigation.
- Profitability
- Operating income as a percentage of product sales demonstrated a considerable increase from 31.44% in 2021 to 38.57% in 2022, followed by a substantial decrease to 22.66% in 2024. A partial recovery to 25.83% occurred in 2025. This trend mirrors the fluctuations in gross profit and suggests a strong correlation between cost of sales and operating performance. Net income followed a similar pattern, peaking at 26.42% in 2022 and declining to 12.77% in 2024 before rising to 21.94% in 2025.
- Non-Operating Items
- Interest expense, net, decreased from -4.93% in 2021 to -7.84% in 2025, indicating a potential reduction in debt or more favorable borrowing terms. Other income (expense), net, exhibited significant volatility, moving from 1.07% in 2021 to -3.28% in 2022, then to 10.53% in 2023, 1.58% in 2024, and finally 7.54% in 2025. This suggests the presence of infrequent or non-recurring items impacting net income.
- Tax Rate
- The provision for income taxes remained relatively consistent as a percentage of product sales, fluctuating between -3.20% and -4.23% from 2022 to 2023, with a decrease to -1.62% in 2024 and an increase to -3.60% in 2025. These fluctuations are likely tied to changes in income before income taxes.
In summary, the period under review was characterized by significant fluctuations in cost of sales and, consequently, in operating and net income. While some recovery is observed in 2025, the volatility warrants continued monitoring and analysis to understand the underlying drivers and potential risks.