Stock Analysis on Net
Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

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

Microsoft Excel

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
ROE = ROA × Financial Leverage
Dec 31, 2023 107.78% = 6.91% × 15.59
Sep 30, 2023 98.82% = 8.36% × 11.83
Jun 30, 2023 117.67% = 8.84% × 13.31
Mar 31, 2023 148.04% = 8.92% × 16.59
Dec 31, 2022 178.97% = 10.06% × 17.79
Sep 30, 2022 187.11% = 10.73% × 17.44
Jun 30, 2022 271.85% = 11.09% × 24.51
Mar 31, 2022 624.78% = 9.67% × 64.62
Dec 31, 2021 87.96% = 9.63% × 9.13
Sep 30, 2021 68.26% = 8.63% × 7.91
Jun 30, 2021 69.67% = 9.61% × 7.25
Mar 31, 2021 75.91% = 11.33% × 6.70
Dec 31, 2020 77.20% = 11.54% × 6.69
Sep 30, 2020 67.09% = 11.37% × 5.90
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 — = — × 5.45
Jun 30, 2019 — = — × 5.50
Mar 31, 2019 — = — × 5.91

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Amgen Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 107.78% = 24.96% × 0.28 × 15.59
Sep 30, 2023 98.82% = 29.52% × 0.28 × 11.83
Jun 30, 2023 117.67% = 31.52% × 0.28 × 13.31
Mar 31, 2023 148.04% = 31.77% × 0.28 × 16.59
Dec 31, 2022 178.97% = 26.42% × 0.38 × 17.79
Sep 30, 2022 187.11% = 27.88% × 0.38 × 17.44
Jun 30, 2022 271.85% = 26.73% × 0.41 × 24.51
Mar 31, 2022 624.78% = 23.42% × 0.41 × 64.62
Dec 31, 2021 87.96% = 24.25% × 0.40 × 9.13
Sep 30, 2021 68.26% = 23.03% × 0.37 × 7.91
Jun 30, 2021 69.67% = 23.80% × 0.40 × 7.25
Mar 31, 2021 75.91% = 29.60% × 0.38 × 6.70
Dec 31, 2020 77.20% = 29.97% × 0.39 × 6.69
Sep 30, 2020 67.09% = 30.91% × 0.37 × 5.90
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 — = — × — × 5.45
Jun 30, 2019 — = — × — × 5.50
Mar 31, 2019 — = — × — × 5.91

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Amgen Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 107.78% = 0.86 × 0.73 × 39.87% × 0.28 × 15.59
Sep 30, 2023 98.82% = 0.86 × 0.78 × 43.78% × 0.28 × 11.83
Jun 30, 2023 117.67% = 0.87 × 0.82 × 44.53% × 0.28 × 13.31
Mar 31, 2023 148.04% = 0.87 × 0.85 × 43.21% × 0.28 × 16.59
Dec 31, 2022 178.97% = 0.89 × 0.84 × 35.29% × 0.38 × 17.79
Sep 30, 2022 187.11% = 0.88 × 0.85 × 36.93% × 0.38 × 17.44
Jun 30, 2022 271.85% = 0.88 × 0.86 × 35.55% × 0.41 × 24.51
Mar 31, 2022 624.78% = 0.88 × 0.84 × 31.62% × 0.41 × 64.62
Dec 31, 2021 87.96% = 0.88 × 0.85 × 32.51% × 0.40 × 9.13
Sep 30, 2021 68.26% = 0.87 × 0.85 × 31.31% × 0.37 × 7.91
Jun 30, 2021 69.67% = 0.88 × 0.85 × 31.83% × 0.40 × 7.25
Mar 31, 2021 75.91% = 0.89 × 0.87 × 38.31% × 0.38 × 6.70
Dec 31, 2020 77.20% = 0.89 × 0.87 × 38.76% × 0.39 × 6.69
Sep 30, 2020 67.09% = 0.89 × 0.87 × 39.87% × 0.37 × 5.90
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 — = — × — × — × — × 5.45
Jun 30, 2019 — = — × — × — × — × 5.50
Mar 31, 2019 — = — × — × — × — × 5.91

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Amgen Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 6.91% = 24.96% × 0.28
Sep 30, 2023 8.36% = 29.52% × 0.28
Jun 30, 2023 8.84% = 31.52% × 0.28
Mar 31, 2023 8.92% = 31.77% × 0.28
Dec 31, 2022 10.06% = 26.42% × 0.38
Sep 30, 2022 10.73% = 27.88% × 0.38
Jun 30, 2022 11.09% = 26.73% × 0.41
Mar 31, 2022 9.67% = 23.42% × 0.41
Dec 31, 2021 9.63% = 24.25% × 0.40
Sep 30, 2021 8.63% = 23.03% × 0.37
Jun 30, 2021 9.61% = 23.80% × 0.40
Mar 31, 2021 11.33% = 29.60% × 0.38
Dec 31, 2020 11.54% = 29.97% × 0.39
Sep 30, 2020 11.37% = 30.91% × 0.37
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 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 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
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 6.91% = 0.86 × 0.73 × 39.87% × 0.28
Sep 30, 2023 8.36% = 0.86 × 0.78 × 43.78% × 0.28
Jun 30, 2023 8.84% = 0.87 × 0.82 × 44.53% × 0.28
Mar 31, 2023 8.92% = 0.87 × 0.85 × 43.21% × 0.28
Dec 31, 2022 10.06% = 0.89 × 0.84 × 35.29% × 0.38
Sep 30, 2022 10.73% = 0.88 × 0.85 × 36.93% × 0.38
Jun 30, 2022 11.09% = 0.88 × 0.86 × 35.55% × 0.41
Mar 31, 2022 9.67% = 0.88 × 0.84 × 31.62% × 0.41
Dec 31, 2021 9.63% = 0.88 × 0.85 × 32.51% × 0.40
Sep 30, 2021 8.63% = 0.87 × 0.85 × 31.31% × 0.37
Jun 30, 2021 9.61% = 0.88 × 0.85 × 31.83% × 0.40
Mar 31, 2021 11.33% = 0.89 × 0.87 × 38.31% × 0.38
Dec 31, 2020 11.54% = 0.89 × 0.87 × 38.76% × 0.39
Sep 30, 2020 11.37% = 0.89 × 0.87 × 39.87% × 0.37
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 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 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
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 24.96% = 0.86 × 0.73 × 39.87%
Sep 30, 2023 29.52% = 0.86 × 0.78 × 43.78%
Jun 30, 2023 31.52% = 0.87 × 0.82 × 44.53%
Mar 31, 2023 31.77% = 0.87 × 0.85 × 43.21%
Dec 31, 2022 26.42% = 0.89 × 0.84 × 35.29%
Sep 30, 2022 27.88% = 0.88 × 0.85 × 36.93%
Jun 30, 2022 26.73% = 0.88 × 0.86 × 35.55%
Mar 31, 2022 23.42% = 0.88 × 0.84 × 31.62%
Dec 31, 2021 24.25% = 0.88 × 0.85 × 32.51%
Sep 30, 2021 23.03% = 0.87 × 0.85 × 31.31%
Jun 30, 2021 23.80% = 0.88 × 0.85 × 31.83%
Mar 31, 2021 29.60% = 0.89 × 0.87 × 38.31%
Dec 31, 2020 29.97% = 0.89 × 0.87 × 38.76%
Sep 30, 2020 30.91% = 0.89 × 0.87 × 39.87%
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 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q4 2023 is the decrease in operating profitability measured by EBIT margin ratio.