Amgen Inc. (NASDAQ:AMGN)

Total Asset Turnover

The reported total asset turnover ratio exhibits a slight decline from 0.39 in 2020 to 0.35 in 2024, with the lowest point occurring in 2023 at 0.28. Adjusted figures reflect a similar pattern, starting at 0.38 in 2020, peaking at 0.40 in 2021, and then decreasing to 0.36 in 2024. This trend indicates a moderate reduction in efficiency in utilizing assets to generate revenue over the observed period.

Current Ratio

Both reported and adjusted current ratios demonstrate a decreasing trend, falling from approximately 1.82 and 1.81 in 2020 to 1.26 in 2024. There is a temporary improvement in 2023, reaching 1.65, before declining again. Overall, the data suggests a weakening short-term liquidity position, potentially signaling tighter working capital management or increased current liabilities relative to current assets.

Debt to Equity Ratio

The reported debt to equity ratio shows a pronounced increase from 3.51 in 2020 to a peak near 10.64 in 2022, followed by a slight decrease but remaining elevated around 10.23 in 2024. Adjusted figures reflect a more volatile pattern with a significant peak at 14.47 in 2022, subsequently declining and then rising again to 14.23 in 2024. This indicates a substantial rise in leverage, suggesting increased reliance on debt financing.

Debt to Capital Ratio

This ratio climbs steadily from 0.78 in 2020 to approximately 0.91-0.94 range from 2022 onward, signaling a growing proportion of debt in the overall capital structure. The consistent high level past 2022 implies sustained leverage and a potentially higher financial risk profile.

Financial Leverage

Financial leverage ratios exhibit a sharp increase from about 6.69 in 2020 to a high of 23.43 in 2022 for adjusted measures and 17.79 reported in the same year. Following 2022, there is a decline but ratios remain elevated through 2024, indicating persistent elevated use of debt relative to equity capital, enhancing both potential returns and financial risk.

Net Profit Margin

The net profit margin declines steadily over the timeframe, from approximately 30% reported in 2020 to nearly 13% in 2024. Adjusted margins mirror this downward trend, decreasing from 26.61% in 2020 to 9.63% in 2024. This suggests profitability has weakened considerably, possibly due to increased costs, competitive pressure, or other operational factors.

Return on Equity (ROE)

ROE shows considerable volatility with a sharp increase from 77.2% in 2020 to a peak at 178.97% reported in 2022, followed by a decrease to 69.59% in 2024. Adjusted ROE is even more variable, reaching a high of 213.07% in 2022 before falling to 72.13% in 2024. This suggests that while the company experienced a substantial increase in profitability relative to shareholder equity around 2022, the subsequent decline points to reduced equity efficiency.

Return on Assets (ROA)

ROA declines gradually from 11.54% reported in 2020 to 4.45% in 2024, with adjusted values confirming the downward trend from 10.24% to 3.48%. This decline indicates reduced effectiveness in asset utilization to generate net income, consistent with the observed decrease in asset turnover and profit margins.

The financial data reveals a progressive increase in product sales over the five-year period, with sales growing from US$24,240 million in 2020 to US$32,026 million in 2024. This represents a consistent upward trend, indicating an expansion in revenue generation activities. The increase accelerates notably from 2022 to 2024.

Total assets exhibit more variability, starting at US$62,948 million in 2020, dipping slightly in 2021, then increasing through 2023 before a modest decline in 2024. The peak in total assets is observed in 2023 at US$97,154 million, reflecting a significant asset base expansion before settling back somewhat in the following year.

Reported total asset turnover ratio

This ratio begins at 0.39 in 2020 and remains relatively stable through 2021 and 2022, followed by a sharp decline to 0.28 in 2023. It recovers slightly to 0.35 in 2024. The dip in 2023 coincides with the peak in total assets, suggesting that asset growth outpaced sales in that period, reducing efficiency.

Adjusted total assets and adjusted total asset turnover ratio

The adjusted total assets closely parallel the reported total assets, showing a similar pattern with a low point in 2021, an increase through 2023, and a slight decrease in 2024. The adjusted total asset turnover ratio reflects this trend, maintaining stability near 0.38–0.40 up to 2022, then dropping to 0.29 in 2023 before a moderate recovery to 0.36 in 2024.

Overall, the data suggests that while product sales have grown steadily, asset utilization efficiency (as measured by asset turnover ratios) has experienced fluctuations. The sharp dip in turnover ratios during 2023 indicates that assets were accumulated or invested ahead of corresponding sales growth, which could imply an expansion phase or capital investments that have yet to fully contribute to revenue. The recovery in turnover ratios in 2024 suggests improving efficiency or better alignment of asset levels to sales.

Current Assets

Current assets demonstrate a general upward trend from 2020 through 2023, increasing from $21,144 million to a peak of $30,332 million in 2023. However, in 2024, there is a slight decline to $29,030 million, indicating a modest reduction in liquid or short-term asset holdings relative to the prior year.

Current Liabilities

Current liabilities have shown a consistent and marked increase over the five-year period. Starting at $11,653 million in 2020, they have almost doubled by 2024, reaching $23,099 million. This steady growth in obligations suggests increased short-term financial commitments or rising operational liabilities.

Reported Current Ratio

The reported current ratio exhibits a downward trend overall. It decreased from 1.81 in 2020 to 1.26 in 2024, with a notable dip to 1.41 in 2022 before a temporary recovery to 1.65 in 2023. The ratio's decline indicates a progressively weaker short-term liquidity position, meaning current assets are becoming increasingly insufficient to cover current liabilities.

Adjusted Current Assets

Adjusted current assets closely mirror the pattern of reported current assets, rising from $21,176 million in 2020 to $30,360 million in 2023, then slightly declining to $29,068 million in 2024. The close relationship suggests minimal adjustments were necessary, with trends corresponding closely to reported figures.

Adjusted Current Ratio

The adjusted current ratio follows the same trajectory as the reported current ratio, declining from 1.82 in 2020 to 1.26 in 2024, with a similar dip and partial rebound observed in 2022 and 2023. This confirms the diminishing liquidity position even when adjusted asset figures are considered.

Summary

The data indicate a concerning trend of increasing current liabilities that outpace the growth of current assets, leading to a decline in both reported and adjusted current ratios over the analyzed period. While current assets increased substantially up to 2023, the sharper rise in liabilities diminished short-term liquidity buffers. The slight decrease in asset levels and continued increase in liabilities in 2024 exacerbate this trend, suggesting potential challenges in meeting short-term obligations if this pattern continues.

The data reveals a significant evolution in the company's financial leverage over the five-year period from 2020 to 2024. Both the total debt and the adjusted total debt increased markedly, particularly between 2022 and 2023, before showing a slight decline in 2024.

Total and Adjusted Total Debt

Total debt rose steadily from approximately $32.99 billion in 2020 to a peak of around $64.6 billion in 2023, followed by a moderate decrease to roughly $60.1 billion in 2024. Adjusted total debt follows a similar trajectory, increasing from about $33.4 billion in 2020 to a high near $65.4 billion in 2023, then declining slightly to about $60.9 billion in 2024.

Stockholders’ Equity and Adjusted Stockholders’ Equity

Stockholders’ equity experienced a downward trend in the first three years, dropping sharply from $9.4 billion in 2020 to approximately $3.66 billion in 2022. It then showed some recovery in 2023, rising to about $6.2 billion, but declined again to around $5.9 billion in 2024. Adjusted stockholders’ equity mirrors this pattern more dramatically, with a sustained decrease from roughly $9.6 billion in 2020 to a low of $2.74 billion in 2022, a partial rebound in 2023 to $5.8 billion, and a subsequent drop to approximately $4.3 billion in 2024.

Debt-to-Equity Ratios and Adjusted Debt-to-Equity Ratios

Both reported and adjusted debt-to-equity ratios indicate increasing leverage, especially pronounced in 2022. Reported debt to equity surged from 3.51 in 2020 to a peak of 10.64 in 2022, slightly decreasing but remaining elevated at 10.23 in 2024. The adjusted debt to equity ratio shows an even more volatile pattern, climbing steeply from 3.47 in 2020 to a high of 14.47 in 2022, then fluctuating to 11.25 in 2023 before rising again to 14.23 in 2024.

Overall, the data suggests that the company significantly increased its financial leverage during the period, particularly around 2022. This surge was driven by a combination of sharply higher debt and a substantial reduction in equity. Although some recovery in equity occurred in 2023, leverage remained high, indicating a sustained reliance on debt financing relative to equity. The adjusted figures emphasize an even more pronounced leverage position, hinting at potential adjustments in assessment criteria that reflect greater financial risk or conservative valuation bases.

Total Debt

The total debt exhibits an increasing trend from 2020 to 2023, rising from 32,986 million US dollars to a peak of 64,613 million US dollars in 2023. In 2024, a slight reduction is observed with debt decreasing to 60,099 million US dollars.

Total Capital

Total capital shows fluctuation over the period. It begins at 42,395 million US dollars in 2020, decreases to 40,009 million US dollars in 2021, then increases to 42,606 million US dollars in 2022. A significant rise occurs in 2023 to 70,845 million US dollars, followed by a decline to 65,976 million US dollars in 2024.

Reported Debt to Capital Ratio

The ratio indicates a rising leverage trend from 0.78 in 2020 to 0.91 in 2022, maintaining stability around 0.91 through 2023 and 2024. This suggests increased reliance on debt financing relative to the capital base, stabilizing at a high leverage level in the last three years.

Adjusted Total Debt

Adjusted total debt increases steadily from 33,445 million US dollars in 2020 to a high of 65,423 million US dollars in 2023, before decreasing to 60,879 million US dollars in 2024. The pattern closely mirrors that of total debt but reflects adjustments potentially for off-balance-sheet items or other reconciliations.

Adjusted Total Capital

Adjusted total capital shows slight volatility, starting at 43,087 million US dollars in 2020, declining in 2021 and 2022, then sharply increasing to 71,237 million US dollars in 2023, followed by a decrease to 65,156 million US dollars in 2024. This indicates variations in the capital base after adjustments that parallel the unadjusted total capital.

Adjusted Debt to Capital Ratio

This ratio progresses from 0.78 in 2020 upwards to a peak of 0.94 in 2022, then slightly decreases to 0.92 in 2023 but increases again to 0.93 in 2024. The adjusted ratio trends consistently higher than the reported ratio from 2021 onward, reflecting a relatively greater adjusted debt level in proportion to capital.

Total assets

The total assets displayed a fluctuating trend over the period. Starting at 62,948 million US dollars in 2020, there was a slight decline to 61,165 million in 2021. This was followed by an increase to 65,121 million in 2022. In 2023, total assets rose sharply to 97,154 million but then decreased to 91,839 million in 2024. Overall, despite fluctuations, the assets showed a notable increase by the end of the period compared to the beginning.

Stockholders’ equity

Stockholders' equity experienced a declining trend from 2020 to 2022, dropping from 9,409 million US dollars to 3,661 million. In 2023, there was a partial recovery to 6,232 million, but this was followed by a slight decrease to 5,877 million in 2024. The general pattern indicates a reduction in equity over the period with some recovery occurring after 2022.

Reported financial leverage

The reported financial leverage ratio increased significantly from 6.69 in 2020 to a peak of 17.79 in 2022. It then declined somewhat to 15.59 in 2023 and remained relatively stable at 15.63 in 2024. This indicates that the company became more leveraged up to 2022, with some deleveraging occurring afterwards but maintaining a high leverage level compared to earlier years.

Adjusted total assets

The adjusted total assets mirrored the trend in total assets closely. Beginning at 62,980 million in 2020, a slight decline to 60,972 million was seen in 2021, followed by a rise to 64,189 million in 2022. In 2023, adjusted assets surged to 94,382 million before decreasing to 88,623 million in 2024. The pattern suggests consistent recognition of asset values under adjustment criteria, reflecting a similar volatility and growth as total assets.

Adjusted stockholders’ equity

The adjusted stockholders’ equity showed a consistent decline from 9,642 million in 2020 to 2,740 million in 2022. Thereafter, an increase to 5,814 million in 2023 was observed, followed again by a decline to 4,277 million in 2024. This pattern confirms a substantial reduction in equity value under adjustment metrics, with a partial rebound that does not fully restore prior levels.

Adjusted financial leverage

The adjusted financial leverage ratio increased markedly from 6.53 in 2020, rising sharply to 23.43 in 2022. This was followed by a decline to 16.23 in 2023, then another increase to 20.72 in 2024. The adjusted leverage ratio shows higher volatility and elevated levels compared to the reported leverage, emphasizing significant leverage and potentially higher risk exposure when adjustments are taken into account.

The financial data reveals several notable trends over the five-year period under review. Product sales exhibit a consistent upward trajectory, increasing each year from $24,240 million at the end of 2020 to $32,026 million by the end of 2024. This steady growth indicates strong revenue expansion over the timeframe.

Net income demonstrates a different pattern. After an initial decrease from $7,264 million in 2020 to $5,893 million in 2021, net income recovers somewhat, reaching $6,552 million in 2022 and $6,717 million in 2023. However, a sharp decline occurs in 2024, dropping to $4,090 million. This volatile trend contrasts with the steady rise observed in product sales, suggesting external factors or increased expenses impacting profitability in the most recent year.

The reported net profit margin follows the movement in net income, starting at 29.97% in 2020 and declining to 24.25% in 2021. It then modestly improves to 26.42% in 2022 before dropping again to 24.96% in 2023 and sharply falling to 12.77% in 2024. This pattern corroborates the significant profit margin compression seen in the final year, implying reduced efficiency in converting sales to profits despite growing revenues.

Adjusted net income also declines over the period, from $6,450 million in 2020 down to $3,085 million in 2024. This metric decreases more steadily without the intermediate recovery phases observed in net income, suggesting ongoing adjustments or one-time items influencing the overall profit picture. Correspondingly, the adjusted net profit margin shows a steady decline from 26.61% in 2020 to 9.63% in 2024, mirroring the trends in adjusted net income and underscoring diminishing profitability relative to sales.

In summary, while product sales have increased steadily, both net income and adjusted net income experienced declines with particular deterioration in profitability margins in the latest year. These trends imply challenges in cost management, expense control, or external market conditions affecting profitability despite rising sales volumes.

The financial data exhibits notable fluctuations in key profitability and equity measures over the analyzed period.

Net Income

Net income declined from 7,264 million USD in 2020 to 5,893 million USD in 2021, followed by a partial recovery to 6,552 million USD in 2022 and a slight increase to 6,717 million USD in 2023. However, it dropped sharply to 4,090 million USD in 2024, indicating volatility and an overall downward trend in recent years.

Stockholders' Equity

Stockholders' equity decreased significantly from 9,409 million USD in 2020 to 6,700 million USD in 2021 and further declined to 3,661 million USD in 2022. A partial recovery is observed in 2023 with equity rising to 6,232 million USD but declined again to 5,877 million USD in 2024. This trend shows considerable variability and a general contraction in equity base over the period.

Reported Return on Equity (ROE)

Reported ROE exhibited a substantial increase from 77.2% in 2020 to a peak of 178.97% in 2022, indicating highly efficient use of equity during that year. It then declined to 107.78% in 2023 and further to 69.59% in 2024. The high percentages suggest significant profitability relative to equity, though the decline post-2022 signals reduced efficiency or increased equity base impact.

Adjusted Net Income

Adjusted net income followed a decreasing trend from 6,450 million USD in 2020 to 5,642 million USD in 2021, with minor fluctuations around 5,838 million USD in 2022 and 5,450 million USD in 2023. A marked decline is seen in 2024 with adjusted net income dropping to 3,085 million USD, which mirrors the trend in reported net income.

Adjusted Stockholders' Equity

The adjusted stockholders' equity saw a sharp decline from 9,642 million USD in 2020 to 6,507 million USD in 2021, followed by a notable drop to 2,740 million USD in 2022. Recovery is visible in 2023 to 5,814 million USD, but a subsequent reduction occurred in 2024 to 4,277 million USD, consistent with the pattern in reported stockholders' equity.

Adjusted Return on Equity (ROE)

Adjusted ROE followed a trajectory similar to reported ROE, rising steeply from 66.89% in 2020 to a peak of 213.07% in 2022, highlighting exceptional profitability relative to equity that year. Subsequently, it decreased to 93.74% in 2023 and dropped further to 72.13% in 2024, indicating a downward adjustment in profitability efficiency after 2022.

In summary, the data reveals a pronounced peak in equity efficiency and profitability around 2022, followed by a notable decline in both net income and equity values in subsequent years. Both reported and adjusted figures corroborate this pattern, underscoring significant volatility in financial performance and equity base across the analyzed periods.

Net Income

Net income experienced a decline from 7,264 million USD in 2020 to 5,893 million USD in 2021, followed by a moderate recovery to 6,552 million USD in 2022 and 6,717 million USD in 2023. However, in 2024, net income sharply decreased to 4,090 million USD, indicating a significant reduction in profitability at the end of the period.

Total Assets

Total assets exhibited a somewhat volatile trend, decreasing slightly from 62,948 million USD in 2020 to 61,165 million USD in 2021. This was followed by an increase to 65,121 million USD in 2022 and a substantial jump to 97,154 million USD in 2023. In 2024, assets decreased again to 91,839 million USD, remaining elevated relative to prior years but below the peak in 2023.

Reported Return on Assets (ROA)

The reported ROA showed a downward trajectory overall, starting at 11.54% in 2020, declining to 9.63% in 2021, and slightly recovering to 10.06% in 2022. From 2022 onward, it declined steadily to 6.91% in 2023 and further to 4.45% in 2024. This trend suggests diminishing efficiency in asset utilization to generate profit over the period.

Adjusted Net Income

Adjusted net income followed a pattern similar to net income but at lower absolute values. It decreased from 6,450 million USD in 2020 to 5,642 million USD in 2021, then remained relatively stable with moderate fluctuations, reaching 5,838 million USD in 2022 and 5,450 million USD in 2023, before dropping significantly to 3,085 million USD in 2024. This indicates adjusted profitability weakening especially in the most recent year.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, with a slight decline from 62,980 million USD in 2020 to 60,972 million USD in 2021, followed by growth to 64,189 million USD in 2022 and a marked increase to 94,382 million USD in 2023. In 2024, adjusted assets decreased to 88,623 million USD, remaining high compared to the earlier years but down from the 2023 peak.

Adjusted Return on Assets (ROA)

Adjusted ROA trended downward, starting at 10.24% in 2020 and declining gradually to 9.25% in 2021 and 9.1% in 2022. The decline became more pronounced in subsequent years, falling to 5.77% in 2023 and 3.48% in 2024. This indicates a reduction in asset efficiency after adjustments, consistent with the trend in reported ROA but showing slightly lower returns.