Stock Analysis on Net
Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Amgen Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.28 0.38 0.40 0.39 0.37
Adjusted 0.28 0.38 0.40 0.38 0.37
Liquidity Ratio
Current Ratio
Reported 1.65 1.41 1.59 1.81 1.44
Adjusted 1.65 1.42 1.59 1.82 1.44
Solvency Ratios
Debt to Equity
Reported 10.37 10.64 4.97 3.51 3.09
Adjusted 11.25 14.47 5.22 3.47 2.98
Debt to Capital
Reported 0.91 0.91 0.83 0.78 0.76
Adjusted 0.92 0.94 0.84 0.78 0.75
Financial Leverage
Reported 15.59 17.79 9.13 6.69 6.17
Adjusted 16.72 23.77 9.40 6.53 5.85
Profitability Ratios
Net Profit Margin
Reported 24.96% 26.42% 24.25% 29.97% 35.32%
Adjusted 20.25% 23.54% 23.22% 26.61% 34.94%
Return on Equity (ROE)
Reported 107.78% 178.97% 87.96% 77.20% 81.07%
Adjusted 93.74% 213.07% 86.71% 66.89% 75.95%
Return on Assets (ROA)
Reported 6.91% 10.06% 9.63% 11.54% 13.13%
Adjusted 5.61% 8.96% 9.22% 10.24% 12.99%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Amgen Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Amgen Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Amgen Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Amgen Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Amgen Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Amgen Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Amgen Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Amgen Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Product sales 26,910 24,801 24,297 24,240 22,204
Total assets 97,154 65,121 61,165 62,948 59,707
Activity Ratio
Total asset turnover1 0.28 0.38 0.40 0.39 0.37
Adjusted
Selected Financial Data (US$ in millions)
Product sales 26,910 24,801 24,297 24,240 22,204
Adjusted total assets2 97,182 65,143 61,191 62,980 59,733
Activity Ratio
Adjusted total asset turnover3 0.28 0.38 0.40 0.38 0.37

Based on: 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).

1 2023 Calculation
Total asset turnover = Product sales ÷ Total assets
= 26,910 ÷ 97,154 = 0.28

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Product sales ÷ Adjusted total assets
= 26,910 ÷ 97,182 = 0.28

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Amgen Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 30,332 22,186 19,385 21,144 18,440
Current liabilities 18,392 15,687 12,184 11,653 12,835
Liquidity Ratio
Current ratio1 1.65 1.41 1.59 1.81 1.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 30,360 22,208 19,411 21,176 18,466
Current liabilities 18,392 15,687 12,184 11,653 12,835
Liquidity Ratio
Adjusted current ratio3 1.65 1.42 1.59 1.82 1.44

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 30,332 ÷ 18,392 = 1.65

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 30,360 ÷ 18,392 = 1.65

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Amgen Inc. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 64,613 38,945 33,309 32,986 29,903
Stockholders’ equity 6,232 3,661 6,700 9,409 9,673
Solvency Ratio
Debt to equity1 10.37 10.64 4.97 3.51 3.09
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 65,423 39,640 33,979 33,445 30,431
Adjusted stockholders’ equity3 5,814 2,740 6,507 9,642 10,213
Solvency Ratio
Adjusted debt to equity4 11.25 14.47 5.22 3.47 2.98

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 64,613 ÷ 6,232 = 10.37

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 65,423 ÷ 5,814 = 11.25

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Amgen Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 64,613 38,945 33,309 32,986 29,903
Total capital 70,845 42,606 40,009 42,395 39,576
Solvency Ratio
Debt to capital1 0.91 0.91 0.83 0.78 0.76
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 65,423 39,640 33,979 33,445 30,431
Adjusted total capital3 71,237 42,380 40,486 43,087 40,644
Solvency Ratio
Adjusted debt to capital4 0.92 0.94 0.84 0.78 0.75

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 64,613 ÷ 70,845 = 0.91

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 65,423 ÷ 71,237 = 0.92

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Amgen Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 97,154 65,121 61,165 62,948 59,707
Stockholders’ equity 6,232 3,661 6,700 9,409 9,673
Solvency Ratio
Financial leverage1 15.59 17.79 9.13 6.69 6.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 97,182 65,143 61,191 62,980 59,733
Adjusted stockholders’ equity3 5,814 2,740 6,507 9,642 10,213
Solvency Ratio
Adjusted financial leverage4 16.72 23.77 9.40 6.53 5.85

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 97,154 ÷ 6,232 = 15.59

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 97,182 ÷ 5,814 = 16.72

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Amgen Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,717 6,552 5,893 7,264 7,842
Product sales 26,910 24,801 24,297 24,240 22,204
Profitability Ratio
Net profit margin1 24.96% 26.42% 24.25% 29.97% 35.32%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,450 5,838 5,642 6,450 7,757
Product sales 26,910 24,801 24,297 24,240 22,204
Profitability Ratio
Adjusted net profit margin3 20.25% 23.54% 23.22% 26.61% 34.94%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Product sales
= 100 × 6,717 ÷ 26,910 = 24.96%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × 5,450 ÷ 26,910 = 20.25%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Amgen Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,717 6,552 5,893 7,264 7,842
Stockholders’ equity 6,232 3,661 6,700 9,409 9,673
Profitability Ratio
ROE1 107.78% 178.97% 87.96% 77.20% 81.07%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,450 5,838 5,642 6,450 7,757
Adjusted stockholders’ equity3 5,814 2,740 6,507 9,642 10,213
Profitability Ratio
Adjusted ROE4 93.74% 213.07% 86.71% 66.89% 75.95%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,717 ÷ 6,232 = 107.78%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 5,450 ÷ 5,814 = 93.74%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 6,717 6,552 5,893 7,264 7,842
Total assets 97,154 65,121 61,165 62,948 59,707
Profitability Ratio
ROA1 6.91% 10.06% 9.63% 11.54% 13.13%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 5,450 5,838 5,642 6,450 7,757
Adjusted total assets3 97,182 65,143 61,191 62,980 59,733
Profitability Ratio
Adjusted ROA4 5.61% 8.96% 9.22% 10.24% 12.99%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,717 ÷ 97,154 = 6.91%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 5,450 ÷ 97,182 = 5.61%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Amgen Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.