Amgen Inc. (AMGN)

Liquidity Analysis Quarterly Data

Difficulty: Beginner

Liquidity ratios measure the company's ability to meet its short-term obligations.

Amgen Inc., liquidity ratios (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Current ratio	3.88	5.49	6.07	6.20	4.41	4.11	4.35	3.97	4.95	4.44	5.42	5.48	5.53	4.95	4.22	4.36	3.45	3.44	6.33	6.20	5.58
Quick ratio	3.42	4.98	5.46	5.47	3.96	3.68	3.90	3.52	4.44	3.97	4.75	4.76	4.68	4.22	3.56	3.67	2.72	2.78	5.32	5.16	4.63
Cash ratio	3.07	4.62	5.05	5.02	3.65	3.40	3.60	3.23	4.08	3.62	4.34	4.35	4.28	3.86	3.28	3.33	2.41	2.44	4.66	4.60	4.14

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Amgen Inc.'s current ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Amgen Inc.'s quick ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Amgen Inc.'s cash ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

Amgen Inc., current ratio calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Current assets	40,689	49,476	49,752	48,442	46,456	46,010	45,844	42,947	42,206	38,518	38,844	37,736	35,064	34,713	36,048	34,328	28,302	27,367	30,675	29,673	28,695
Current liabilities	10,479	9,020	8,193	7,815	10,523	11,204	10,542	10,830	8,523	8,667	7,165	6,891	6,336	7,008	8,551	7,866	8,203	7,947	4,843	4,784	5,142
Ratio
Current ratio¹	3.88	5.49	6.07	6.20	4.41	4.11	4.35	3.97	4.95	4.44	5.42	5.48	5.53	4.95	4.22	4.36	3.45	3.44	6.33	6.20	5.58

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 40,689 ÷ 10,479 = 3.88

Ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Amgen Inc.'s current ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

Amgen Inc., quick ratio calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	9,741	3,800	3,000	2,629	3,358	3,241	3,485	2,630	2,896	4,144	3,226	3,795	2,864	3,731	3,677	4,352	3,687	3,805	8,281	5,806	2,530
Marketable securities	22,431	37,878	38,351	36,598	35,040	34,844	34,495	32,404	31,844	27,238	27,894	26,198	24,254	23,295	24,398	21,836	16,115	15,596	14,277	16,212	18,741
Receivable from sale of investments	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	–	560	–	–
Trade receivables, net	3,633	3,237	3,404	3,560	3,248	3,165	3,186	3,078	3,078	2,995	2,901	2,779	2,548	2,546	2,355	2,697	2,514	2,697	2,670	2,674	2,528
Total quick assets	35,805	44,915	44,755	42,787	41,646	41,250	41,166	38,112	37,818	34,377	34,021	32,772	29,666	29,572	30,430	28,885	22,316	22,098	25,788	24,692	23,799
Current liabilities	10,479	9,020	8,193	7,815	10,523	11,204	10,542	10,830	8,523	8,667	7,165	6,891	6,336	7,008	8,551	7,866	8,203	7,947	4,843	4,784	5,142
Ratio
Quick ratio¹	3.42	4.98	5.46	5.47	3.96	3.68	3.90	3.52	4.44	3.97	4.75	4.76	4.68	4.22	3.56	3.67	2.72	2.78	5.32	5.16	4.63

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Quick ratio = Total quick assets ÷ Current liabilities
= 35,805 ÷ 10,479 = 3.42

Ratio	Description	The company
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Amgen Inc.'s quick ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

Amgen Inc., cash ratio calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents	9,741	3,800	3,000	2,629	3,358	3,241	3,485	2,630	2,896	4,144	3,226	3,795	2,864	3,731	3,677	4,352	3,687	3,805	8,281	5,806	2,530
Marketable securities	22,431	37,878	38,351	36,598	35,040	34,844	34,495	32,404	31,844	27,238	27,894	26,198	24,254	23,295	24,398	21,836	16,115	15,596	14,277	16,212	18,741
Total cash assets	32,172	41,678	41,351	39,227	38,398	38,085	37,980	35,034	34,740	31,382	31,120	29,993	27,118	27,026	28,075	26,188	19,802	19,401	22,558	22,018	21,271
Current liabilities	10,479	9,020	8,193	7,815	10,523	11,204	10,542	10,830	8,523	8,667	7,165	6,891	6,336	7,008	8,551	7,866	8,203	7,947	4,843	4,784	5,142
Ratio
Cash ratio¹	3.07	4.62	5.05	5.02	3.65	3.40	3.60	3.23	4.08	3.62	4.34	4.35	4.28	3.86	3.28	3.33	2.41	2.44	4.66	4.60	4.14

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Cash ratio = Total cash assets ÷ Current liabilities
= 32,172 ÷ 10,479 = 3.07

Ratio	Description	The company
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Amgen Inc.'s cash ratio deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.