Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Amgen Inc. (NASDAQ:AMGN)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Amgen Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Jun 30, 2020 68.48% = 11.23% × 6.10
Mar 31, 2020 80.92% = 12.45% × 6.50
Dec 31, 2019 81.07% = 13.13% × 6.17
Sep 30, 2019 73.83% = 13.55% × 5.45
Jun 30, 2019 73.73% = 13.40% × 5.50
Mar 31, 2019 74.55% = 12.62% × 5.91
Dec 31, 2018 67.15% = 12.64% × 5.31
Sep 30, 2018 15.35% = 3.27% × 4.69
Jun 30, 2018 15.86% = 3.49% × 4.54
Mar 31, 2018 14.21% = 3.12% × 4.56
Dec 31, 2017 7.84% = 2.48% × 3.17
Sep 30, 2017 25.37% = 10.18% × 2.49
Jun 30, 2017 25.77% = 10.27% × 2.51
Mar 31, 2017 25.76% = 10.14% × 2.54
Dec 31, 2016 25.85% = 9.95% × 2.60
Sep 30, 2016 24.65% = 9.71% × 2.54
Jun 30, 2016 24.67% = 9.85% × 2.50
Mar 31, 2016 25.16% = 9.61% × 2.62
Dec 31, 2015 24.71% = 9.69% × 2.55
Sep 30, 2015 — = — × 2.57
Jun 30, 2015 — = — × 2.59
Mar 31, 2015 — = — × 2.60

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Amgen Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 68.48% = 31.53% × 0.36 × 6.10
Mar 31, 2020 80.92% = 33.64% × 0.37 × 6.50
Dec 31, 2019 81.07% = 35.32% × 0.37 × 6.17
Sep 30, 2019 73.83% = 36.14% × 0.37 × 5.45
Jun 30, 2019 73.73% = 35.57% × 0.38 × 5.50
Mar 31, 2019 74.55% = 35.93% × 0.35 × 5.91
Dec 31, 2018 67.15% = 37.25% × 0.34 × 5.31
Sep 30, 2018 15.35% = 9.96% × 0.33 × 4.69
Jun 30, 2018 15.86% = 10.72% × 0.33 × 4.54
Mar 31, 2018 14.21% = 10.11% × 0.31 × 4.56
Dec 31, 2017 7.84% = 9.08% × 0.27 × 3.17
Sep 30, 2017 25.37% = 37.36% × 0.27 × 2.49
Jun 30, 2017 25.77% = 37.24% × 0.28 × 2.51
Mar 31, 2017 25.76% = 36.12% × 0.28 × 2.54
Dec 31, 2016 25.85% = 35.27% × 0.28 × 2.60
Sep 30, 2016 24.65% = 35.19% × 0.28 × 2.54
Jun 30, 2016 24.67% = 34.48% × 0.29 × 2.50
Mar 31, 2016 25.16% = 33.86% × 0.28 × 2.62
Dec 31, 2015 24.71% = 33.13% × 0.29 × 2.55
Sep 30, 2015 — = — × — × 2.57
Jun 30, 2015 — = — × — × 2.59
Mar 31, 2015 — = — × — × 2.60

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Amgen Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jun 30, 2020 68.48% = 0.88 × 0.87 × 41.33% × 0.36 × 6.10
Mar 31, 2020 80.92% = 0.87 × 0.87 × 44.43% × 0.37 × 6.50
Dec 31, 2019 81.07% = 0.86 × 0.88 × 46.96% × 0.37 × 6.17
Sep 30, 2019 73.83% = 0.86 × 0.87 × 47.84% × 0.37 × 5.45
Jun 30, 2019 73.73% = 0.87 × 0.87 × 47.11% × 0.38 × 5.50
Mar 31, 2019 74.55% = 0.87 × 0.87 × 47.33% × 0.35 × 5.91
Dec 31, 2018 67.15% = 0.88 × 0.87 × 48.54% × 0.34 × 5.31
Sep 30, 2018 15.35% = 0.23 × 0.87 × 49.53% × 0.33 × 4.69
Jun 30, 2018 15.86% = 0.24 × 0.88 × 50.82% × 0.33 × 4.54
Mar 31, 2018 14.21% = 0.23 × 0.88 × 50.47% × 0.31 × 4.56
Dec 31, 2017 7.84% = 0.21 × 0.88 × 50.02% × 0.27 × 3.17
Sep 30, 2017 25.37% = 0.85 × 0.88 × 50.10% × 0.27 × 2.49
Jun 30, 2017 25.77% = 0.84 × 0.88 × 50.12% × 0.28 × 2.51
Mar 31, 2017 25.76% = 0.84 × 0.88 × 48.77% × 0.28 × 2.54
Dec 31, 2016 25.85% = 0.84 × 0.88 × 47.61% × 0.28 × 2.60
Sep 30, 2016 24.65% = 0.86 × 0.88 × 46.43% × 0.28 × 2.54
Jun 30, 2016 24.67% = 0.87 × 0.88 × 45.18% × 0.29 × 2.50
Mar 31, 2016 25.16% = 0.86 × 0.88 × 44.57% × 0.28 × 2.62
Dec 31, 2015 24.71% = 0.87 × 0.88 × 43.32% × 0.29 × 2.55
Sep 30, 2015 — = — × — × — × — × 2.57
Jun 30, 2015 — = — × — × — × — × 2.59
Mar 31, 2015 — = — × — × — × — × 2.60

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Amgen Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Jun 30, 2020 11.23% = 31.53% × 0.36
Mar 31, 2020 12.45% = 33.64% × 0.37
Dec 31, 2019 13.13% = 35.32% × 0.37
Sep 30, 2019 13.55% = 36.14% × 0.37
Jun 30, 2019 13.40% = 35.57% × 0.38
Mar 31, 2019 12.62% = 35.93% × 0.35
Dec 31, 2018 12.64% = 37.25% × 0.34
Sep 30, 2018 3.27% = 9.96% × 0.33
Jun 30, 2018 3.49% = 10.72% × 0.33
Mar 31, 2018 3.12% = 10.11% × 0.31
Dec 31, 2017 2.48% = 9.08% × 0.27
Sep 30, 2017 10.18% = 37.36% × 0.27
Jun 30, 2017 10.27% = 37.24% × 0.28
Mar 31, 2017 10.14% = 36.12% × 0.28
Dec 31, 2016 9.95% = 35.27% × 0.28
Sep 30, 2016 9.71% = 35.19% × 0.28
Jun 30, 2016 9.85% = 34.48% × 0.29
Mar 31, 2016 9.61% = 33.86% × 0.28
Dec 31, 2015 9.69% = 33.13% × 0.29
Sep 30, 2015 — = — × —
Jun 30, 2015 — = — × —
Mar 31, 2015 — = — × —

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Amgen Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jun 30, 2020 11.23% = 0.88 × 0.87 × 41.33% × 0.36
Mar 31, 2020 12.45% = 0.87 × 0.87 × 44.43% × 0.37
Dec 31, 2019 13.13% = 0.86 × 0.88 × 46.96% × 0.37
Sep 30, 2019 13.55% = 0.86 × 0.87 × 47.84% × 0.37
Jun 30, 2019 13.40% = 0.87 × 0.87 × 47.11% × 0.38
Mar 31, 2019 12.62% = 0.87 × 0.87 × 47.33% × 0.35
Dec 31, 2018 12.64% = 0.88 × 0.87 × 48.54% × 0.34
Sep 30, 2018 3.27% = 0.23 × 0.87 × 49.53% × 0.33
Jun 30, 2018 3.49% = 0.24 × 0.88 × 50.82% × 0.33
Mar 31, 2018 3.12% = 0.23 × 0.88 × 50.47% × 0.31
Dec 31, 2017 2.48% = 0.21 × 0.88 × 50.02% × 0.27
Sep 30, 2017 10.18% = 0.85 × 0.88 × 50.10% × 0.27
Jun 30, 2017 10.27% = 0.84 × 0.88 × 50.12% × 0.28
Mar 31, 2017 10.14% = 0.84 × 0.88 × 48.77% × 0.28
Dec 31, 2016 9.95% = 0.84 × 0.88 × 47.61% × 0.28
Sep 30, 2016 9.71% = 0.86 × 0.88 × 46.43% × 0.28
Jun 30, 2016 9.85% = 0.87 × 0.88 × 45.18% × 0.29
Mar 31, 2016 9.61% = 0.86 × 0.88 × 44.57% × 0.28
Dec 31, 2015 9.69% = 0.87 × 0.88 × 43.32% × 0.29
Sep 30, 2015 — = — × — × — × —
Jun 30, 2015 — = — × — × — × —
Mar 31, 2015 — = — × — × — × —

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Amgen Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jun 30, 2020 31.53% = 0.88 × 0.87 × 41.33%
Mar 31, 2020 33.64% = 0.87 × 0.87 × 44.43%
Dec 31, 2019 35.32% = 0.86 × 0.88 × 46.96%
Sep 30, 2019 36.14% = 0.86 × 0.87 × 47.84%
Jun 30, 2019 35.57% = 0.87 × 0.87 × 47.11%
Mar 31, 2019 35.93% = 0.87 × 0.87 × 47.33%
Dec 31, 2018 37.25% = 0.88 × 0.87 × 48.54%
Sep 30, 2018 9.96% = 0.23 × 0.87 × 49.53%
Jun 30, 2018 10.72% = 0.24 × 0.88 × 50.82%
Mar 31, 2018 10.11% = 0.23 × 0.88 × 50.47%
Dec 31, 2017 9.08% = 0.21 × 0.88 × 50.02%
Sep 30, 2017 37.36% = 0.85 × 0.88 × 50.10%
Jun 30, 2017 37.24% = 0.84 × 0.88 × 50.12%
Mar 31, 2017 36.12% = 0.84 × 0.88 × 48.77%
Dec 31, 2016 35.27% = 0.84 × 0.88 × 47.61%
Sep 30, 2016 35.19% = 0.86 × 0.88 × 46.43%
Jun 30, 2016 34.48% = 0.87 × 0.88 × 45.18%
Mar 31, 2016 33.86% = 0.86 × 0.88 × 44.57%
Dec 31, 2015 33.13% = 0.87 × 0.88 × 43.32%
Sep 30, 2015 — = — × — × —
Jun 30, 2015 — = — × — × —
Mar 31, 2015 — = — × — × —

Based on: 10-Q (filing date: 2020-07-29), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-12), 10-Q (filing date: 2019-10-30), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-07-27), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-13), 10-Q (filing date: 2017-10-26), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-27), 10-K (filing date: 2017-02-14), 10-Q (filing date: 2016-10-28), 10-Q (filing date: 2016-07-29), 10-Q (filing date: 2016-05-02), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-11-02), 10-Q (filing date: 2015-08-05), 10-Q (filing date: 2015-04-27).

The primary reason for the decrease in net profit margin ratio over Q2 2020 is the decrease in operating profitability measured by EBIT margin ratio.