Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Amgen Inc., net profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The financial data over the analyzed periods reveals several noteworthy trends and fluctuations in key performance indicators. Net income experienced a general upward trajectory from 2005 through 2016, with values increasing from approximately $3.7 billion to over $7.7 billion. However, a substantial decline occurred in 2017, where net income dropped sharply to under $2.0 billion. Following this decline, net income exhibited some recovery and variability but remained below the peak levels observed earlier, finishing at $4.1 billion in 2024.

Product sales demonstrated a consistent and steady increase throughout the entire period. Sales rose from just over $12 billion in 2005 to more than $32 billion by 2024. This upward trend suggests strong revenue growth and market expansion, without significant interruptions or regressions, indicating resilience in the company's sales performance even when net income showed volatility.

The net profit margin, representing the ratio of net income to product sales, reflected greater variability compared to sales. The margin started relatively high at about 31% in 2005, declined to near 21-22% during 2006-2007, then improved again reaching a peak above 37% in 2018. However, the margin experienced a pronounced decline in 2017 to around 9%, closely aligning with the noted dip in net income that year. Afterward, the margin fluctuated between roughly 25% and 30%, but ended the period at approximately 13% in 2024, indicating reduced profitability relative to sales in the most recent year.

Overall, while product sales consistently increased, net income and profit margins were subject to significant fluctuations, with a critical downturn around 2017. The divergence between steadily rising sales and variable profitability suggests possible shifts in cost structures, pricing pressures, or other operational challenges impacting net earnings despite growing revenue streams. The most recent data points to a moderation in profitability, highlighting the importance of scrutinizing expense management and efficiency to sustain financial performance.


Comparison to Competitors

Amgen Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Amgen Inc., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)