Analysis of Geographic Areas
Amgen Inc. operates in 2 regions: United States and Rest of world (ROW).
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
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Area Asset Turnover
Amgen Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of area asset turnover reveals differing performance trends between the United States and the Rest of World (ROW) over the five-year period. The United States demonstrates a generally decreasing trend, while the ROW exhibits a pattern of improvement followed by a slight decline.
- United States
- Asset turnover in the United States experienced a consistent decline from 6.50 in 2021 to 5.09 in 2025. This represents a decrease of approximately 21.7% over the period. While a minor increase was observed between 2022 and 2023 (from 5.90 to 5.74), the overall trajectory is downward. This suggests a decreasing efficiency in utilizing assets to generate revenue within the United States.
- Rest of World (ROW)
- The Rest of World showed an improving trend in asset turnover from 3.27 in 2021 to 4.01 in 2024, representing a growth of approximately 22.5%. However, this positive momentum was interrupted in 2025, with a decrease to 3.79. Despite this final-year decline, the ROW’s asset turnover remains higher than its initial value in 2021, indicating improved asset utilization overall, though with recent instability.
The divergence in trends suggests potential shifts in operational efficiency or investment strategies within each geographic area. The declining asset turnover in the United States warrants further investigation to identify the underlying causes, such as increased asset holdings without corresponding revenue growth, or potentially slower sales. The initial improvement in the ROW, followed by a recent decrease, could be attributed to factors like market conditions, expansion initiatives, or changes in asset composition. Continued monitoring of these trends is recommended.
Area Asset Turnover: United States
Amgen Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
The financial performance related to asset utilization within the United States demonstrates a fluctuating pattern over the five-year period. Revenues consistently increased, while the net value of property, plant, and equipment also rose, though not always in direct correlation with revenue growth. This interplay impacts the area asset turnover ratio, which reflects the efficiency with which assets are used to generate sales.
- Revenues
- Revenues originating from the United States exhibited a consistent upward trajectory, increasing from US$18,194 million in 2021 to US$26,419 million in 2025. The largest single-year increase occurred between 2023 and 2024, with a substantial rise from US$19,806 million to US$23,863 million.
- Property, Plant, and Equipment (PP&E)
- The net value of property, plant, and equipment experienced a steady increase throughout the period, rising from US$2,801 million in 2021 to US$5,188 million in 2025. The rate of increase in PP&E accelerated in later years, particularly between 2023 and 2025, suggesting increased investment in fixed assets.
- Area Asset Turnover
- The area asset turnover ratio, a measure of asset efficiency, initially decreased from 6.50 in 2021 to 5.41 in 2023. A slight recovery to 5.74 was observed in 2024, but the ratio subsequently declined to 5.09 in 2025. This suggests that while revenues are growing, the rate of asset growth is outpacing revenue growth, leading to a diminishing return on asset utilization. The decrease in the ratio, despite revenue increases, warrants further investigation into the efficiency of asset deployment and potential underutilization of existing assets.
In summary, the United States segment demonstrates strong revenue growth alongside increasing investment in property, plant, and equipment. However, the declining area asset turnover ratio indicates a potential need to optimize asset utilization strategies to maximize revenue generation from the existing asset base.
Area Asset Turnover: Rest of world (ROW)
Amgen Inc.; Rest of world (ROW); area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
The Rest of World (ROW) area demonstrates an increasing trend in revenue generation alongside relatively stable property, plant, and equipment (PP&E) investment, resulting in a fluctuating area asset turnover ratio over the analyzed period.
- Revenues
- Revenues exhibited a slight decrease from US$7,785 million in 2021 to US$7,728 million in 2022. Subsequently, revenues increased consistently through 2025, reaching US$10,332 million. This represents a cumulative growth of approximately 32.6% from 2021 to 2025.
- Property, Plant and Equipment, Net
- PP&E remained relatively stable between 2021 and 2023, fluctuating between US$2,273 million and US$2,383 million. A moderate increase in PP&E is observed in 2024 and 2025, reaching US$2,725 million. This suggests a potential increase in capital investment towards the end of the period.
- Area Asset Turnover
- The area asset turnover ratio increased from 3.27 in 2021 to 3.40 in 2022, indicating improved asset utilization. This upward trend continued to 3.67 in 2023 and peaked at 4.01 in 2024. However, the ratio decreased slightly to 3.79 in 2025. Despite the decrease in 2025, the ratio remains significantly higher than in 2021, suggesting overall improved efficiency in generating revenue from assets within the ROW area. The increase in PP&E in 2024 and 2025 may be a contributing factor to the slight decrease in the ratio in 2025, as new assets take time to contribute fully to revenue generation.
Overall, the ROW area demonstrates a positive trajectory in revenue generation and asset utilization. While the asset turnover ratio experienced a minor decline in the most recent year, it remains at a historically high level, suggesting continued efficient operations.
Revenues
Amgen Inc., revenues by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 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).
Revenues demonstrate a consistent upward trajectory over the five-year period. Growth is observed in both the United States and the Rest of World (ROW) segments, though at differing rates. Total revenue increases year-over-year, culminating in a substantial rise between 2023 and 2025.
- United States Revenue
- Revenue from the United States exhibits steady growth throughout the period, increasing from US$18,194 million in 2021 to US$26,419 million in 2025. The most significant increase occurs between 2023 and 2024, with a rise of US$4,057 million. Growth rates appear to accelerate over time, indicating strengthening performance within this key market.
- Rest of World (ROW) Revenue
- ROW revenue also shows an upward trend, moving from US$7,785 million in 2021 to US$10,332 million in 2025. While consistently positive, the growth in ROW is less pronounced than that of the United States. A slight decrease is noted between 2021 and 2022, but subsequent years demonstrate recovery and continued expansion. The increase between 2024 and 2025 is US$771 million.
- Total Revenue Composition
- The United States consistently represents the majority of total revenue. In 2021, US revenue accounted for approximately 70.1% of total revenue, and this proportion increases to approximately 72.1% in 2025. While ROW revenue grows in absolute terms, its relative contribution to total revenue remains comparatively stable, fluctuating between approximately 29.9% and 30.0% over the period. Total revenue increased by US$10,772 million between 2021 and 2025.
- Growth Rate Analysis
- The period between 2023 and 2024 shows the largest absolute increase in total revenue, suggesting a potential inflection point in growth. While ROW demonstrates consistent growth, the United States is the primary driver of overall revenue expansion. The sustained growth in both segments indicates a broad-based positive performance.
Property, plant and equipment, net
Amgen Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 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).
Property, plant, and equipment, net, exhibited distinct trends across geographic areas between 2021 and 2025. The United States demonstrated consistent growth, while the Rest of World (ROW) experienced more moderate fluctuations. Overall, total property, plant, and equipment, net, increased throughout the period.
- United States
- The value of property, plant, and equipment, net, in the United States increased steadily from US$2,801 million in 2021 to US$5,188 million in 2025. This represents a substantial cumulative increase of 84.9% over the five-year period. The growth rate appears to have accelerated in the later years, with a larger increase between 2023 and 2025 compared to earlier periods.
- Rest of World (ROW)
- The Rest of World initially experienced a slight decrease in property, plant, and equipment, net, from US$2,383 million in 2021 to US$2,273 million in 2022. It then remained relatively stable between 2022 and 2024, fluctuating around US$2,300 million. A noticeable increase occurred between 2024 and 2025, reaching US$2,725 million. The cumulative increase over the five-year period was 14.3%.
- Total Property, Plant, and Equipment, Net
- Total property, plant, and equipment, net, increased from US$5,184 million in 2021 to US$7,913 million in 2025, representing a cumulative increase of 52.7%. The growth trajectory generally followed the trend observed in the United States, with consistent year-over-year increases. The largest single-year increase occurred between 2024 and 2025.
The disparity in growth rates between the United States and the Rest of World suggests a strategic focus on capital investment within the United States. While the Rest of World experienced some growth, it was considerably less pronounced than that of the United States. This difference may reflect varying investment priorities, market conditions, or stages of development in these regions.