Stock Analysis on Net
Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

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

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Product sales1
Dec 31, 2024 = 100 × ÷
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Dec 31, 2020 = 100 × ÷
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Dec 31, 2008 = 100 × ÷
Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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 analysis of the financial data over the observed period reveals several notable trends in operating income, product sales, and operating profit margin.

Operating Income
Operating income exhibited considerable fluctuations throughout the years. Initially, it decreased from 4,848 million USD in 2005 to 3,840 million USD in 2006, followed by minor increases and decreases in subsequent years. A significant decline is observed in 2011 at 4,312 million USD, with a recovery to peaks close to 9,794 million USD in 2016. After reaching a high point shortly thereafter, operating income experienced a downward trajectory, falling to 7,258 million USD by 2024.
Product Sales
Product sales showed a consistent upward trend over the period. The figures rose from 12,022 million USD in 2005 to 32,026 million USD in 2024, marking a strong growth trajectory. While the growth rate varied across years, the overall pattern indicates steady expansion with no significant declines, underscoring a solid increase in revenue from product offerings.
Operating Profit Margin
The operating profit margin displayed variability throughout the period. It started at 40.33% in 2005, then experienced a drop to around 27.7-28.2% during 2006 to 2007 and again in 2011. A recovery phase is noticeable from 2010 reaching a peak of 45.76% in 2017, suggesting improved operational efficiency or cost management during this interval. However, this margin subsequently diminished steadily to 22.66% by 2024, indicating a reduction in profitability relative to sales despite growing product sales volumes.

In summary, while product sales have consistently increased over time, operating income and operating profit margin have shown volatility with periods of decline, especially in the later years. This could suggest rising costs, increased competition, or other operational challenges impacting the company’s profitability despite expanding sales.

Comparison to Competitors

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

Microsoft Excel
Amgen Inc. AbbVie Inc. Danaher Corp. Gilead Sciences Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc. Vertex Pharmaceuticals Inc.
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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).