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

Amgen Inc. (NASDAQ:AMGN)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Amgen Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 3.51 3.09 2.71 1.40 1.16
Debt to equity (including operating lease liability) 3.55 3.15 2.71 1.40 1.16
Debt to capital 0.78 0.76 0.73 0.58 0.54
Debt to capital (including operating lease liability) 0.78 0.76 0.73 0.58 0.54
Debt to assets 0.52 0.50 0.51 0.44 0.45
Debt to assets (including operating lease liability) 0.53 0.51 0.51 0.44 0.45
Financial leverage 6.69 6.17 5.31 3.17 2.60
Coverage Ratios
Interest coverage 7.44 8.09 7.86 8.36 8.27
Fixed charge coverage 6.48 7.12 7.13 7.56 7.57

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Amgen Inc.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Amgen Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Amgen Inc.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Amgen Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Amgen Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Amgen Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Amgen Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Amgen Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Amgen Inc.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity

Amgen Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Solvency Ratio
Debt to equity1 3.51 3.09 2.71 1.40 1.16
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.57 0.58 0.64 0.90 1.07
AbbVie Inc. 6.58 7.33 7.95
Bristol-Myers Squibb Co. 1.34 0.91 0.52 0.68 0.41
Eli Lilly & Co. 2.94 5.88 1.30 1.18 0.74
Gilead Sciences Inc. 1.73 1.09 1.28 1.64 1.39
Illumina Inc. 0.25 0.25 0.53 0.49 0.58
Johnson & Johnson 0.56 0.47 0.51 0.57 0.39
Merck & Co. Inc. 1.26 1.02 0.94 0.71 0.62
Pfizer Inc. 0.63 0.83 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.24 0.06 0.08 0.11 0.11
Vertex Pharmaceuticals Inc. 0.07 0.09 0.13 0.29 0.71
Zoetis Inc. 1.91 2.38 2.95 2.80 3.00
Debt to Equity, Sector
Pharmaceuticals & Biotechnology 1.20 1.12 1.00 0.94 0.84
Debt to Equity, Industry
Health Care 0.92 0.91 0.83 0.84 0.79

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 32,986 ÷ 9,409 = 3.51

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Amgen Inc.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

Amgen Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
Current operating lease liabilities (located in Accrued liabilities) 153  140  —  —  — 
Noncurrent operating lease liabilities (located in Other noncurrent liabilities) 306  388  —  —  — 
Total debt (including operating lease liability) 33,445  30,431  33,929  35,342  34,596 
 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Solvency Ratio
Debt to equity (including operating lease liability)1 3.55 3.15 2.71 1.40 1.16
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.61 0.61 0.64 0.90 1.07
AbbVie Inc. 6.66 7.33 7.95
Bristol-Myers Squibb Co. 1.37 0.92 0.52 0.68 0.41
Eli Lilly & Co. 3.06 6.11 1.30 1.18 0.74
Gilead Sciences Inc. 1.76 1.12 1.28 1.64 1.39
Illumina Inc. 0.41 0.41 0.53 0.49 0.58
Johnson & Johnson 0.57 0.48 0.51 0.57 0.39
Merck & Co. Inc. 1.32 1.06 0.94 0.71 0.62
Pfizer Inc. 0.65 0.85 0.66 0.61 0.71
Regeneron Pharmaceuticals Inc. 0.25 0.07 0.08 0.11 0.11
Vertex Pharmaceuticals Inc. 0.11 0.11 0.13 0.29 0.71
Zoetis Inc. 1.96 2.45 2.95 2.80 3.00
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 1.23 1.15 1.00 0.94 0.84
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.95 0.94 0.83 0.84 0.79

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 33,445 ÷ 9,409 = 3.55

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Amgen Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital

Amgen Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Total capital 42,395  39,576  46,429  60,583  64,471 
Solvency Ratio
Debt to capital1 0.78 0.76 0.73 0.58 0.54
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.36 0.37 0.39 0.47 0.52
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Bristol-Myers Squibb Co. 0.57 0.48 0.34 0.40 0.29
Eli Lilly & Co. 0.75 0.85 0.57 0.54 0.42
Gilead Sciences Inc. 0.63 0.52 0.56 0.62 0.58
Illumina Inc. 0.20 0.20 0.35 0.33 0.37
Johnson & Johnson 0.36 0.32 0.34 0.37 0.28
Merck & Co. Inc. 0.56 0.50 0.48 0.42 0.38
Pfizer Inc. 0.39 0.45 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Vertex Pharmaceuticals Inc. 0.06 0.09 0.12 0.22 0.42
Zoetis Inc. 0.66 0.70 0.75 0.74 0.75
Debt to Capital, Sector
Pharmaceuticals & Biotechnology 0.54 0.53 0.50 0.48 0.46
Debt to Capital, Industry
Health Care 0.48 0.48 0.45 0.46 0.44

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 32,986 ÷ 42,395 = 0.78

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Amgen Inc.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

Amgen Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
Current operating lease liabilities (located in Accrued liabilities) 153  140  —  —  — 
Noncurrent operating lease liabilities (located in Other noncurrent liabilities) 306  388  —  —  — 
Total debt (including operating lease liability) 33,445  30,431  33,929  35,342  34,596 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Total capital (including operating lease liability) 42,854  40,104  46,429  60,583  64,471 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.78 0.76 0.73 0.58 0.54
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.38 0.38 0.39 0.47 0.52
AbbVie Inc. 0.87 1.14 1.27 0.88 0.89
Bristol-Myers Squibb Co. 0.58 0.48 0.34 0.40 0.29
Eli Lilly & Co. 0.75 0.86 0.57 0.54 0.42
Gilead Sciences Inc. 0.64 0.53 0.56 0.62 0.58
Illumina Inc. 0.29 0.29 0.35 0.33 0.37
Johnson & Johnson 0.36 0.33 0.34 0.37 0.28
Merck & Co. Inc. 0.57 0.51 0.48 0.42 0.38
Pfizer Inc. 0.39 0.46 0.40 0.38 0.41
Regeneron Pharmaceuticals Inc. 0.20 0.06 0.07 0.10 0.10
Vertex Pharmaceuticals Inc. 0.10 0.10 0.12 0.22 0.42
Zoetis Inc. 0.66 0.71 0.75 0.74 0.75
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.55 0.54 0.50 0.48 0.46
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.49 0.48 0.45 0.46 0.44

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 33,445 ÷ 42,854 = 0.78

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Amgen Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Assets

Amgen Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
 
Total assets 62,948  59,707  66,416  79,954  77,626 
Solvency Ratio
Debt to assets1 0.52 0.50 0.51 0.44 0.45
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.26 0.27 0.29 0.37 0.42
AbbVie Inc. 0.57 0.75 0.68 0.53 0.56
Bristol-Myers Squibb Co. 0.43 0.36 0.21 0.24 0.20
Eli Lilly & Co. 0.36 0.39 0.29 0.30 0.27
Gilead Sciences Inc. 0.46 0.40 0.43 0.48 0.46
Illumina Inc. 0.16 0.16 0.29 0.25 0.30
Johnson & Johnson 0.20 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.35 0.31 0.30 0.28 0.26
Pfizer Inc. 0.26 0.31 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Vertex Pharmaceuticals Inc. 0.05 0.07 0.09 0.16 0.28
Zoetis Inc. 0.53 0.56 0.60 0.58 0.58
Debt to Assets, Sector
Pharmaceuticals & Biotechnology 0.36 0.35 0.32 0.32 0.31
Debt to Assets, Industry
Health Care 0.33 0.33 0.31 0.32 0.31

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 32,986 ÷ 62,948 = 0.52

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Amgen Inc.’s debt to assets ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

Amgen Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt 91  2,953  4,419  1,152  4,403 
Long-term debt, excluding current portion 32,895  26,950  29,510  34,190  30,193 
Total debt 32,986  29,903  33,929  35,342  34,596 
Current operating lease liabilities (located in Accrued liabilities) 153  140  —  —  — 
Noncurrent operating lease liabilities (located in Other noncurrent liabilities) 306  388  —  —  — 
Total debt (including operating lease liability) 33,445  30,431  33,929  35,342  34,596 
 
Total assets 62,948  59,707  66,416  79,954  77,626 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.53 0.51 0.51 0.44 0.45
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Abbott Laboratories 0.27 0.28 0.29 0.37 0.42
AbbVie Inc. 0.58 0.75 0.68 0.53 0.56
Bristol-Myers Squibb Co. 0.44 0.37 0.21 0.24 0.20
Eli Lilly & Co. 0.37 0.41 0.29 0.30 0.27
Gilead Sciences Inc. 0.47 0.41 0.43 0.48 0.46
Illumina Inc. 0.25 0.26 0.29 0.25 0.30
Johnson & Johnson 0.21 0.18 0.20 0.22 0.19
Merck & Co. Inc. 0.37 0.32 0.30 0.28 0.26
Pfizer Inc. 0.27 0.32 0.26 0.25 0.25
Regeneron Pharmaceuticals Inc. 0.16 0.05 0.06 0.08 0.07
Vertex Pharmaceuticals Inc. 0.08 0.08 0.09 0.16 0.28
Zoetis Inc. 0.54 0.58 0.60 0.58 0.58
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals & Biotechnology 0.37 0.36 0.32 0.32 0.31
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.34 0.34 0.31 0.32 0.31

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 33,445 ÷ 62,948 = 0.53

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Amgen Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Financial Leverage

Amgen Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets 62,948  59,707  66,416  79,954  77,626 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Solvency Ratio
Financial leverage1 6.69 6.17 5.31 3.17 2.60
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.21 2.18 2.20 2.47 2.56
AbbVie Inc. 11.51 13.89 14.26
Bristol-Myers Squibb Co. 3.13 2.52 2.49 2.86 2.08
Eli Lilly & Co. 8.27 15.07 4.47 3.88 2.77
Gilead Sciences Inc. 3.76 2.74 2.98 3.44 3.02
Illumina Inc. 1.62 1.59 1.85 1.91 1.95
Johnson & Johnson 2.76 2.65 2.56 2.61 2.01
Merck & Co. Inc. 3.62 3.26 3.09 2.56 2.38
Pfizer Inc. 2.44 2.65 2.51 2.41 2.88
Regeneron Pharmaceuticals Inc. 1.56 1.34 1.34 1.43 1.57
Vertex Pharmaceuticals Inc. 1.35 1.37 1.41 1.75 2.50
Zoetis Inc. 3.61 4.26 4.93 4.85 5.14
Financial Leverage, Sector
Pharmaceuticals & Biotechnology 3.34 3.18 3.08 2.89 2.67
Financial Leverage, Industry
Health Care 2.82 2.77 2.68 2.66 2.54

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 62,948 ÷ 9,409 = 6.69

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Amgen Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

Amgen Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 7,264  7,842  8,394  1,979  7,722 
Add: Income tax expense 869  1,296  1,151  7,618  1,441 
Add: Interest expense, net 1,262  1,289  1,392  1,304  1,260 
Earnings before interest and tax (EBIT) 9,395  10,427  10,937  10,901  10,423 
Solvency Ratio
Interest coverage1 7.44 8.09 7.86 8.36 8.27
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 10.10 7.09 4.48 3.47 4.28
AbbVie Inc. 2.38 5.72 4.86 7.72 8.53
Bristol-Myers Squibb Co. -3.84 8.58 33.61 27.18 36.42
Eli Lilly & Co. 21.11 14.15 14.95 10.77 19.22
Gilead Sciences Inc. 2.70 6.19 8.24 13.10 18.74
Illumina Inc. 18.47 22.50 16.68 29.19 17.91
Johnson & Johnson 83.07 55.49 18.91 19.92 28.28
Merck & Co. Inc. 11.58 13.84 12.27 9.65 7.72
Pfizer Inc. 6.17 12.23 10.03 10.69 8.04
Regeneron Pharmaceuticals Inc. 67.97 81.43 91.55 83.75 185.82
Vertex Pharmaceuticals Inc. 54.60 24.84 9.28 0.77 0.17
Zoetis Inc. 9.64 9.08 9.20 9.71 8.40
Interest Coverage, Sector
Pharmaceuticals & Biotechnology 7.17 11.09 10.29 10.99 12.62
Interest Coverage, Industry
Health Care 7.98 9.95 9.71 10.14 10.74

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 9,395 ÷ 1,262 = 7.44

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Amgen Inc.’s interest coverage ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Fixed Charge Coverage

Amgen Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 7,264  7,842  8,394  1,979  7,722 
Add: Income tax expense 869  1,296  1,151  7,618  1,441 
Add: Interest expense, net 1,262  1,289  1,392  1,304  1,260 
Earnings before interest and tax (EBIT) 9,395  10,427  10,937  10,901  10,423 
Add: Operating lease costs 223  204  166  159  134 
Earnings before fixed charges and tax 9,618  10,631  11,103  11,060  10,557 
 
Interest expense, net 1,262  1,289  1,392  1,304  1,260 
Operating lease costs 223  204  166  159  134 
Fixed charges 1,485  1,493  1,558  1,463  1,394 
Solvency Ratio
Fixed charge coverage1 6.48 7.12 7.13 7.56 7.57
Benchmarks
Fixed Charge Coverage, Competitors2
Abbott Laboratories 6.68 5.14 4.48 3.47 4.28
AbbVie Inc. 2.28 5.42 4.44 6.86 7.54
Bristol-Myers Squibb Co. -3.08 7.10 20.07 17.24 19.96
Eli Lilly & Co. 15.06 10.18 8.66 5.89 9.31
Gilead Sciences Inc. 2.45 5.46 7.58 12.26 17.36
Illumina Inc. 7.44 9.22 8.98 13.57 8.11
Johnson & Johnson 33.93 28.72 14.46 14.53 19.75
Merck & Co. Inc. 8.47 10.31 8.95 7.03 5.73
Pfizer Inc. 4.98 9.88 8.34 8.76 6.64
Vertex Pharmaceuticals Inc. 39.35 20.79 7.69 0.82 0.33
Zoetis Inc. 8.21 7.85 7.73 8.55 7.43
Fixed Charge Coverage, Sector
Pharmaceuticals & Biotechnology 5.90 9.00 8.63 9.13 10.29
Fixed Charge Coverage, Industry
Health Care 6.14 7.68 7.66 7.99 8.46

Based on: 10-K (filing date: 2021-02-09), 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 9,618 ÷ 1,485 = 6.48

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Amgen Inc.’s fixed charge coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020.