Stock Analysis on Net
Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

$24.99

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Amgen Inc., consolidated income statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Product sales
Cost of sales
Gross profit from product sales
Other revenues
Research and development
Acquired in-process research and development
Selling, general and administrative
Other
Operating income
Interest expense, net
Other income (expense), net
Income before income taxes
Provision for income taxes
Net income

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).

Product Sales
Product sales showed a steady increase over the five-year period, rising from $24,240 million in 2020 to $32,026 million in 2024. The growth was particularly notable between 2023 and 2024, indicating an acceleration in revenue generation.
Cost of Sales
Costs associated with sales increased substantially, from $6,159 million in 2020 to $12,858 million in 2024. The cost growth outpaced sales growth particularly in 2023 and 2024, which may indicate rising production or procurement expenses that could pressure gross margins.
Gross Profit from Product Sales
Gross profit remained relatively stable with minor fluctuations, increasing marginally from $18,081 million in 2020 to $19,168 million in 2024. Despite rising sales, the gross profit growth was limited due to the pronounced increase in cost of sales.
Other Revenues
Other revenues fluctuated during the period, peaking at $1,682 million in 2021, declining afterward, and settling at $1,398 million in 2024. This volatility suggests variable income sources outside core product sales, contributing unevenly to total revenue.
Research and Development (R&D)
R&D expenses showed an upward trend, growing from $4,207 million in 2020 to $5,964 million in 2024, indicating increased investment in product innovation and development. Notably, there was an additional significant charge related to acquired in-process research and development amounting to $1,505 million in 2021, which did not recur in other years.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses exhibited a gradual increase from $5,730 million in 2020 to $7,096 million in 2024, reflecting higher administrative and selling cost structures consistent with expanded operations or marketing efforts.
Other Expenses
Other expenses showed variability, with relatively minor losses in 2020 and 2021, a significant spike in losses in 2022 and 2023, and a reduction again in 2024. This indicates the presence of non-recurring or unusual items impacting operating results during this timeframe.
Operating Income
Operating income demonstrated fluctuations with a peak in 2022 at $9,566 million, a decline in subsequent years to $7,258 million in 2024. The variability correlates with changes in gross profit, operating expenses, and other non-core costs.
Interest Expense, Net
Interest expense increased over the period, almost tripling from $1,262 million in 2020 to $3,155 million in 2024, indicating a growing debt burden or higher financing costs impacting net profitability.
Other Income (Expense), Net
This category was volatile, showing small positive values initially, a significant negative value in 2022, followed by a substantial positive swing of $2,833 million in 2023 before declining to $506 million in 2024. This suggests the impact of one-time gains or losses, investments, or non-operational activities influencing net income.
Income Before Income Taxes
Income before taxes generally trended downward from $8,133 million in 2020 to $4,609 million in 2024, with a temporary increase in 2023. The decline in 2024 signals challenges in maintaining pre-tax profitability despite revenue growth.
Provision for Income Taxes
The provision for income taxes varied but remained lower in absolute terms compared to income, declining to $519 million in 2024 from $869 million in 2020, possibly reflecting changes in taxable income or effective tax planning strategies.
Net Income
Net income peaked at $7,264 million in 2020 but declined to $4,090 million in 2024. The decreasing trend highlights pressures on bottom-line profitability driven by rising costs, increased interest expenses, and volatile other income/expense items despite revenue growth.