Amgen Inc. (NASDAQ:AMGN)

The analysis of the financial data reveals several notable trends in the composition of liabilities and stockholders’ equity over the period observed.

Accounts payable

The percentage of accounts payable relative to total liabilities and stockholders’ equity showed slight fluctuations, decreasing from 2.26% in 2020 to 1.64% in 2023, then rising again to 2.08% in 2024, indicating moderate variability without a clear directional trend.

Sales deductions

This item generally increased from 7.63% in 2020 to a peak of 9.19% in 2022, followed by a decrease to 7.48% in 2023 and a rebound to 9.15% in 2024, suggesting cyclical changes in deductions related to sales within the company’s financial structure.

Income taxes payable

There was an overall increase over the period, from 1.32% in 2020 to 2.81% in 2024, reflecting growing tax liabilities relative to the total financial base, despite a slight dip in 2021 and 2023.

Employee compensation and benefits

The ratio remained relatively stable with a small decline from 1.74% in 2020 to 1.42% in 2023, and a minor increase to 1.45% in 2024, indicating consistent but slightly reduced short-term employee-related obligations.

Dividends payable

This item declined from 1.62% in 2020 to 1.24% in 2023 before rising moderately to 1.39% in 2024, indicating some variability in dividend-related short-term liabilities.

Accrued interest payable

Starting at zero and appearing from 2022, it increased to 0.96% in 2023 before a slight decline to 0.94% in 2024, pointing to emerging and sustained interest expenses over recent periods.

Other current liabilities

These declined somewhat from 3.81% in 2020 to 2.99% in 2023, then increased to 3.46% in 2024, reflecting moderate fluctuations in miscellaneous short-term liabilities.

Accrued liabilities

This category saw a general upward trend, rising from 16.11% in 2020 to a high of 19.23% in 2022, dropping to 15.81% in 2023, and then climbing again to 19.21% in 2024. This indicates variability but an overall significant presence among current liabilities.

Current portion of long-term debt

There was a notable increase from 0.14% in 2020 to 3.87% in 2024, signaling growing short-term maturity of previously long-term debt obligations.

Current liabilities (total)

The share of current liabilities increased from 18.51% in 2020 to 25.15% in 2024, with a peak in 2022 at 24.09% and a dip in 2023. This suggests a growing short-term obligation burden within the company’s capital structure.

Long-term debt, excluding current portion

This item showed a steady increase from 52.26% in 2020 to a peak of 65.02% in 2023, followed by a slight reduction to 61.57% in 2024, indicating sustained reliance on long-term borrowing with some recent deleveraging.

Long-term deferred tax liabilities

This emerged in 2022 at 0.02% and increased significantly to 2.42% in 2023 before decreasing to 1.76% in 2024, reflecting newly recognized deferred tax obligations with some fluctuation thereafter.

Long-term tax liabilities

A clear decreasing trend is observable, falling from 11.07% in 2020 to 2.56% in 2024, which may indicate settlement or reclassification of longer-term tax obligations over the period.

Other noncurrent liabilities

These liabilities remained somewhat stable but showed a decrease from 4.03% in 2021 to 2.39% in 2023, with a slight recovery to 2.56% in 2024, indicating minor variability in miscellaneous long-term liabilities.

Noncurrent liabilities (total)

The proportion of noncurrent liabilities rose from 66.54% in 2020 to a peak of 74.65% in 2023, subsequently declining to 68.45% in 2024. This signals a heavy and increasing reliance on long-term obligations during the earlier years, somewhat reduced in the latest period.

Total liabilities

Total liabilities increased from 85.05% in 2020 to a high of 94.38% in 2022, and remained elevated around 93.6% in 2024, illustrating a growing overall debt burden relative to stockholders’ equity.

Common stock and additional paid-in capital

This equity component declined notably from 50.52% in 2020 to 34.04% in 2023, recovering slightly to 36.51% in 2024, indicating some dilution or other adjustments in equity financing.

Accumulated deficit

The accumulated deficit deepened from -34.01% in 2020 to -43.95% in 2022, then improved markedly to -27.33% in 2023, with a slight reversal to -30.04% in 2024. This suggests periods of losses followed by recovery efforts impacting retained earnings.

Accumulated other comprehensive loss

The loss levels decreased steadily in absolute terms, from -1.56% in 2020 to -0.07% in 2024, reflecting a reduction in unrealized losses or adjustments in other comprehensive income components.

Stockholders’ equity (total)

Overall stockholders' equity declined from 14.95% in 2020 to a low of 5.62% in 2022, slightly recovering to 6.4% by 2024, indicating a relative weakening of equity financing compared to liabilities.

In summary, the company demonstrated an increasing reliance on both current and long-term liabilities during the period under review, peaking around 2022-2023. Meanwhile, equity components weakened considerably, with a significant accumulated deficit impacting total stockholders’ equity. There was some recent stabilization in equity proportions and partial deleveraging in long-term debt, alongside increasing short-term debt maturities. Financial obligations related to taxes and accrued liabilities experienced variability, with notable growth in income taxes payable and accrued interest payable emerging in recent years. These trends collectively indicate a financial structure becoming increasingly leveraged, with some signs of stabilization in the most recent period.