Analysis of Geographic Areas
Amgen Inc. operates in 2 regions: United States and Rest of world (ROW).
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
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Area Asset Turnover
Amgen Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) |
Based on: 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), 10-K (reporting date: 2020-12-31).
- United States Asset Turnover
- The asset turnover ratio for the United States exhibits a declining trend from 7.48 in 2020 to 5.41 in 2023, representing a gradual decrease over the four-year period. In 2024, there is a slight upward adjustment to 5.74, indicating a modest recovery after several years of decline. Despite this increase, the 2024 figure remains below the 2020 level.
- Rest of World (ROW) Asset Turnover
- The asset turnover ratio for the Rest of World region shows a consistent and steady growth across the entire period. Starting at 2.87 in 2020, the ratio increases progressively each year, reaching 4.01 in 2024. This indicates improving efficiency in asset utilization outside of the United States throughout the years analyzed.
- Comparative Insights
- While the United States demonstrates a decreasing asset turnover ratio trend with a slight recovery at the end, the Rest of World region continuously improves its asset turnover. The gap between the two regions’ ratios narrows over time, driven primarily by the steady increase in the Rest of World ratio and the declining trend in the United States until 2023. This suggests a shift in operational efficiency or market dynamics favoring the international segment relative to the domestic U.S. operations during this period.
Area Asset Turnover: United States
Amgen Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
- Revenues
- The revenues recorded a general upward trend over the five-year period. Starting at $18,496 million in 2020, there was a slight decline to $18,194 million in 2021, followed by a modest recovery in 2022 to $18,595 million. The growth became more pronounced in the subsequent years, with revenues increasing to $19,806 million in 2023 and further accelerating to $23,863 million in 2024. This indicates a strong revenue growth trajectory in the last two years of the period under review.
- Property, Plant and Equipment, Net
- This asset category showed a consistent increase throughout the period. Beginning at $2,473 million in 2020, the net value of property, plant, and equipment rose steadily each year, reaching $2,801 million in 2021, $3,154 million in 2022, $3,658 million in 2023, and finally $4,156 million in 2024. The significant and continuous investment in fixed assets suggests expansion or ongoing capital improvements during these years.
- Area Asset Turnover
- The area asset turnover ratio exhibited a declining trend from 2020 through 2023, falling from 7.48 in 2020 to a low of 5.41 in 2023. This indicates that the efficiency with which the assets were utilized to generate revenue deteriorated over these years. However, in 2024, the ratio showed a slight improvement by rising to 5.74, suggesting a partial recovery in asset utilization efficiency, albeit still below the levels observed at the start of the period.
- Summary Insights
- Over the five years, there was a clear growth in revenues coupled with substantial increases in the net value of property, plant, and equipment. Despite these positive indicators, the capacity to generate revenue from the invested assets, as measured by the area asset turnover, generally declined until 2023 before modestly improving in the last year. This pattern may imply that investments in assets outpaced revenue growth initially, impacting asset efficiency, with recent operations possibly starting to better leverage the expanded asset base.
Area Asset Turnover: Rest of world (ROW)
Amgen Inc.; Rest of world (ROW); area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Area asset turnover = Revenues ÷ Property, plant and equipment, net
= ÷ =
- Revenues
- The revenues generated in the Rest of World (ROW) geographic area displayed a generally upward trend over the five-year period. Starting at $6,928 million in 2020, revenues increased to $7,785 million in 2021, followed by a slight decline to $7,728 million in 2022. Afterward, the revenues resumed growth, reaching $8,384 million in 2023 and further rising to $9,561 million in 2024. Overall, this represents significant revenue growth, particularly in the last two years.
- Property, plant and equipment, net
- The net value of property, plant, and equipment showed a modest decline from $2,416 million in 2020 to $2,273 million in 2022. Following this decrease, the asset base stabilized somewhat with a slight increase to $2,387 million by 2024. Although the asset base experienced a reduction in the initial years, it remained relatively flat in the later period.
- Area asset turnover
- The area asset turnover ratio exhibited a clear and consistent increase throughout the period. Rising from 2.87 in 2020 to 4.01 in 2024, this upward movement suggests a strengthening efficiency in utilizing the property, plant, and equipment to generate revenues. The ratio improved steadily year-over-year, indicating better asset utilization over time.
- Summary
- The data indicates continuous improvement in revenue generation in the ROW segment, coupled with a relatively stable asset base following an initial decline. The increasing area asset turnover ratio highlights enhanced operational efficiency, reflecting that the company is generating more revenue per dollar of property, plant, and equipment invested. This combination of growing revenues and improving asset productivity points to effective management of resources and a positive performance trajectory in the ROW region.
Revenues
Amgen Inc., revenues by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) | |||||
| Total |
Based on: 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), 10-K (reporting date: 2020-12-31).
- Revenue Trends in the United States
- Revenue in the United States shows a generally upward trend over the five-year period. Starting at 18,496 million US dollars in 2020, it experienced a slight decline in 2021 to 18,194 million, followed by gradual increases in the subsequent years to reach 23,863 million in 2024. The most notable increase occurred between 2023 and 2024, indicating a strong growth phase in the domestic market.
- Revenue Trends in the Rest of the World (ROW)
- Revenue from the Rest of the World segment also displayed growth over the observed period, albeit at a more moderate pace. Beginning at 6,928 million US dollars in 2020, it rose consistently each year except for a slight dip in 2022 to 7,728 million, recovering and reaching 9,561 million by 2024. This trend suggests steady expansion in international markets.
- Total Revenue Analysis
- Total revenue shows a consistent upward trajectory across the five years, increasing from 25,424 million US dollars in 2020 to 33,424 million in 2024. This represents an overall growth of approximately 31%, driven by increases in both the United States and ROW segments, with the domestic market contributing a larger absolute increase.
- Comparative Insights
- The data reveals that while both the United States and ROW revenues contribute to the overall growth, the United States segment consistently accounts for a larger portion of total revenues. The growth rate in the domestic market appears to accelerate notably in the latest year, whereas growth in the ROW remains steady but less pronounced. This could indicate a strengthening core market alongside ongoing international expansion.
Property, plant and equipment, net
Amgen Inc., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Rest of world (ROW) | |||||
| Total |
Based on: 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), 10-K (reporting date: 2020-12-31).
- United States
- The property, plant, and equipment net value in the United States has demonstrated a consistent upward trend over the five-year period. Beginning at 2,473 million US dollars as of December 31, 2020, this figure increased each year, reaching 4,156 million US dollars by December 31, 2024. This represents a compounded growth indicating sustained investment or asset retention in this geographic area.
- Rest of World (ROW)
- In contrast to the United States, the Rest of World region exhibited a declining trend between 2020 and 2022, with values decreasing from 2,416 million US dollars to 2,273 million US dollars. Following this decline, a stabilization phase is observed from 2022 onwards, with minor fluctuations, ending at 2,387 million US dollars in 2024. This suggests reduced or stagnant capital expenditure or asset depreciation outside the domestic market.
- Total
- The total net property, plant, and equipment figures reflect a general positive growth trajectory, rising from 4,889 million US dollars in 2020 to 6,543 million US dollars in 2024. The total increase is primarily driven by the growth in the United States segment, offsetting the relatively flat development in the Rest of World segment. The overall growth indicates an expansion or reinforcement of the company's asset base over the analyzed period.