Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Amgen Inc., solvency ratios
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).
The solvency position exhibited a period of increasing risk followed by a partial recovery over the five-year period. Initially, leverage ratios increased significantly before demonstrating signs of stabilization and then improvement. A consistent pattern emerges when comparing ratios that include operating lease liabilities to those that do not; the inclusion of these liabilities consistently results in slightly higher ratio values, indicating their material impact on the overall debt picture.
- Debt Ratios (Debt to Equity, Debt to Capital, Debt to Assets)
- Debt to equity ratios increased substantially from 4.97 in 2021 to a peak of 10.64 in 2022, before decreasing to 6.31 in 2025. Debt to capital ratios followed a similar trajectory, rising from 0.83 to 0.92 in 2022 and then declining to 0.86 by 2025. Debt to assets ratios also increased, from 0.54 to 0.67, before decreasing to 0.60. This suggests a period of increased reliance on debt financing, followed by a reduction in debt relative to equity, capital, and assets.
- Leverage Ratios (Financial Leverage)
- Financial leverage increased from 9.13 in 2021 to 17.79 in 2022, mirroring the increase in debt ratios. It then decreased to 10.46 in 2025, indicating a lessening of the company’s reliance on leverage. The peak in 2022 suggests a significant increase in the use of financial leverage during that year.
- Coverage Ratios (Interest Coverage, Fixed Charge Coverage)
- Both interest coverage and fixed charge coverage ratios declined from 2021 to 2023, with interest coverage falling from 6.60 to 3.73 and fixed charge coverage decreasing from 5.67 to 3.55. This decline coincided with the increase in debt and leverage, indicating a reduced ability to meet interest and fixed charge obligations. A slight recovery is observed in 2025, with interest coverage at 4.26 and fixed charge coverage at 3.97, suggesting an improved capacity to cover these obligations as debt levels moderated.
Overall, the period between 2021 and 2023 was characterized by increasing debt and leverage, accompanied by declining coverage ratios. The subsequent period from 2023 to 2025 shows a trend towards reduced debt and improved coverage, suggesting a strengthening solvency position. The inclusion of operating lease liabilities consistently increases the reported debt levels across all ratios, highlighting the importance of considering these obligations when assessing the company’s financial risk.
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Debt Ratios
Coverage Ratios
Debt to Equity
Amgen Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Stockholders’ equity | 8,658) | 5,877) | 6,232) | 3,661) | 6,700) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 6.31 | 10.23 | 10.37 | 10.64 | 4.97 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | — | 20.19 | 5.73 | 3.67 | 4.98 | |
| Bristol-Myers Squibb Co. | 2.44 | 3.04 | 1.35 | 1.27 | 1.24 | |
| Danaher Corp. | 0.35 | 0.32 | 0.34 | 0.39 | 0.49 | |
| Eli Lilly & Co. | 1.60 | 2.37 | 2.34 | 1.52 | 1.88 | |
| Gilead Sciences Inc. | 1.10 | 1.38 | 1.09 | 1.19 | 1.27 | |
| Johnson & Johnson | 0.59 | 0.51 | 0.43 | 0.52 | 0.46 | |
| Merck & Co. Inc. | 0.94 | 0.80 | 0.93 | 0.67 | 0.87 | |
| Pfizer Inc. | 0.75 | 0.73 | 0.81 | 0.37 | 0.50 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.12 | 0.14 | |
| Thermo Fisher Scientific Inc. | 0.74 | 0.63 | 0.75 | 0.78 | 0.85 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.06 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.02 | 1.04 | 0.97 | 0.80 | 0.93 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.86 | 0.87 | 0.82 | 0.72 | 0.80 | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 54,604 ÷ 8,658 = 6.31
2 Click competitor name to see calculations.
The debt to equity ratio exhibits significant fluctuation over the observed period. Initially, the ratio increased substantially before demonstrating a potential stabilization and subsequent decline.
- Debt to Equity Ratio - Overall Trend
- The debt to equity ratio began at 4.97 in 2021 and rose dramatically to 10.64 in 2022. This indicates a considerable increase in the proportion of debt financing relative to equity financing during that year. The ratio remained elevated at 10.37 and 10.23 in 2023 and 2024 respectively, suggesting a sustained reliance on debt. However, a notable decrease to 6.31 is observed in 2025, signaling a shift towards a more balanced capital structure.
- Debt Trend
- Total debt increased from US$33,309 million in 2021 to US$38,945 million in 2022, contributing to the initial rise in the debt to equity ratio. A substantial increase occurred in 2023, reaching US$64,613 million. While debt decreased in subsequent years, falling to US$60,099 million in 2024 and US$54,604 million in 2025, it remained significantly higher than the 2021 level.
- Stockholders’ Equity Trend
- Stockholders’ equity experienced a decline from US$6,700 million in 2021 to US$3,661 million in 2022, exacerbating the increase in the debt to equity ratio. A partial recovery was seen in 2023, with equity rising to US$6,232 million, and continued modestly to US$5,877 million in 2024. A more substantial increase is observed in 2025, reaching US$8,658 million, which contributed to the reduction in the debt to equity ratio during that year.
The combined effect of fluctuating debt levels and changes in stockholders’ equity has resulted in a dynamic debt to equity ratio. The decrease in 2025 suggests a potential improvement in the company’s financial leverage, although the ratio remains considerably higher than its value in 2021.
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Debt to Equity (including Operating Lease Liability)
Amgen Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Current operating lease liabilities (included in Accrued liabilities) | 135) | 107) | 119) | 156) | 145) | |
| Noncurrent operating lease liabilities (included in Other noncurrent liabilities) | 696) | 673) | 691) | 539) | 525) | |
| Total debt (including operating lease liability) | 55,435) | 60,879) | 65,423) | 39,640) | 33,979) | |
| Stockholders’ equity | 8,658) | 5,877) | 6,232) | 3,661) | 6,700) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 6.40 | 10.36 | 10.50 | 10.83 | 5.07 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | — | 20.46 | 5.82 | 3.72 | 5.03 | |
| Bristol-Myers Squibb Co. | 2.55 | 3.13 | 1.41 | 1.31 | 1.27 | |
| Danaher Corp. | 0.37 | 0.35 | 0.37 | 0.41 | 0.52 | |
| Eli Lilly & Co. | 1.65 | 2.45 | 2.44 | 1.59 | 1.96 | |
| Gilead Sciences Inc. | 1.13 | 1.41 | 1.12 | 1.22 | 1.30 | |
| Johnson & Johnson | 0.60 | 0.53 | 0.44 | 0.53 | 0.47 | |
| Merck & Co. Inc. | 0.96 | 0.83 | 0.97 | 0.70 | 0.91 | |
| Pfizer Inc. | 0.78 | 0.76 | 0.84 | 0.41 | 0.54 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.10 | 0.11 | 0.12 | 0.15 | |
| Thermo Fisher Scientific Inc. | 0.76 | 0.66 | 0.78 | 0.82 | 0.89 | |
| Vertex Pharmaceuticals Inc. | 0.11 | 0.11 | 0.05 | 0.06 | 0.10 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.05 | 1.07 | 1.00 | 0.83 | 0.96 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 0.90 | 0.85 | 0.76 | 0.83 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 55,435 ÷ 8,658 = 6.40
2 Click competitor name to see calculations.
The debt to equity ratio, inclusive of operating lease liabilities, demonstrates significant fluctuation over the observed five-year period. Initially, the ratio increased substantially before exhibiting a decline in later years.
- Debt to Equity Trend (2021-2025)
- In 2021, the debt to equity ratio stood at 5.07. A marked increase was observed in 2022, rising to 10.83. This upward trend continued into 2023, reaching 10.50, before stabilizing slightly at 10.36 in 2024. A considerable decrease is then apparent in 2025, with the ratio falling to 6.40.
Total debt, including operating lease liability, increased from US$33,979 million in 2021 to US$65,423 million in 2023. Subsequently, debt decreased to US$60,879 million in 2024 and further to US$55,435 million in 2025.
- Stockholders’ Equity Trend (2021-2025)
- Stockholders’ equity experienced a decline from US$6,700 million in 2021 to US$3,661 million in 2022. A recovery was noted in 2023, with equity rising to US$6,232 million. This trend continued modestly in 2024, reaching US$5,877 million, and then increased significantly to US$8,658 million in 2025.
The substantial increase in the debt to equity ratio between 2021 and 2023 suggests a greater reliance on debt financing relative to equity. The subsequent decrease in the ratio in 2025, coupled with the increase in stockholders’ equity, indicates a potential shift towards a more balanced capital structure or a reduction in debt levels.
- Interrelation of Debt and Equity
- The observed fluctuations in the debt to equity ratio are directly influenced by the concurrent changes in both total debt and stockholders’ equity. The initial rise in the ratio was driven by a larger increase in debt compared to the decrease in equity. The later decline in the ratio is attributable to the reduction in debt and the increase in equity.
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Debt to Capital
Amgen Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Stockholders’ equity | 8,658) | 5,877) | 6,232) | 3,661) | 6,700) | |
| Total capital | 63,262) | 65,976) | 70,845) | 42,606) | 40,009) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.86 | 0.91 | 0.91 | 0.91 | 0.83 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Bristol-Myers Squibb Co. | 0.71 | 0.75 | 0.57 | 0.56 | 0.55 | |
| Danaher Corp. | 0.26 | 0.24 | 0.26 | 0.28 | 0.33 | |
| Eli Lilly & Co. | 0.62 | 0.70 | 0.70 | 0.60 | 0.65 | |
| Gilead Sciences Inc. | 0.52 | 0.58 | 0.52 | 0.54 | 0.56 | |
| Johnson & Johnson | 0.37 | 0.34 | 0.30 | 0.34 | 0.31 | |
| Merck & Co. Inc. | 0.48 | 0.44 | 0.48 | 0.40 | 0.46 | |
| Pfizer Inc. | 0.43 | 0.42 | 0.45 | 0.27 | 0.33 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.42 | 0.39 | 0.43 | 0.44 | 0.46 | |
| Vertex Pharmaceuticals Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.51 | 0.49 | 0.44 | 0.48 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.47 | 0.45 | 0.42 | 0.44 | |
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
Debt to capital = Total debt ÷ Total capital
= 54,604 ÷ 63,262 = 0.86
2 Click competitor name to see calculations.
The Debt to Capital ratio exhibits a generally increasing trend from 2021 to 2023, followed by a stabilization and slight decrease through 2025. This indicates a shifting reliance on debt financing relative to total capital employed by the entity.
- Debt to Capital Ratio - Overall Trend
- The ratio increased from 0.83 in 2021 to 0.91 in 2022 and remained at 0.91 in 2023. This suggests an increasing proportion of debt used to finance assets and operations during this period. The ratio then held steady in 2024 before decreasing slightly to 0.86 in 2025, potentially indicating a shift towards equity financing or debt reduction.
The substantial increases in both Total Debt and Total Capital between 2021 and 2023 contributed to the initial rise in the Debt to Capital ratio. While Total Debt peaked in 2023, it subsequently decreased in both 2024 and 2025. Total Capital also experienced a decline over these same periods, though at a slower rate than Total Debt. This differential rate of decline is likely responsible for the observed decrease in the ratio in 2025.
- Debt and Capital Movements
- Total debt increased significantly from US$33,309 million in 2021 to US$64,613 million in 2023, before decreasing to US$54,604 million by 2025. Total capital followed a similar pattern, rising from US$40,009 million in 2021 to US$70,845 million in 2023, and then decreasing to US$63,262 million in 2025. The consistent increases in both figures until 2023 suggest a period of expansion or significant investment.
The stabilization of the Debt to Capital ratio at 0.91 in 2022 and 2023, despite the increasing absolute levels of debt, suggests that capital was being raised in proportion to debt during those years. The subsequent decrease in 2025 indicates a potential change in financial strategy, possibly prioritizing debt repayment or equity issuance.
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Debt to Capital (including Operating Lease Liability)
Amgen Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Current operating lease liabilities (included in Accrued liabilities) | 135) | 107) | 119) | 156) | 145) | |
| Noncurrent operating lease liabilities (included in Other noncurrent liabilities) | 696) | 673) | 691) | 539) | 525) | |
| Total debt (including operating lease liability) | 55,435) | 60,879) | 65,423) | 39,640) | 33,979) | |
| Stockholders’ equity | 8,658) | 5,877) | 6,232) | 3,661) | 6,700) | |
| Total capital (including operating lease liability) | 64,093) | 66,756) | 71,655) | 43,301) | 40,679) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.86 | 0.91 | 0.91 | 0.92 | 0.84 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 1.05 | 0.95 | 0.85 | 0.79 | 0.83 | |
| Bristol-Myers Squibb Co. | 0.72 | 0.76 | 0.58 | 0.57 | 0.56 | |
| Danaher Corp. | 0.27 | 0.26 | 0.27 | 0.29 | 0.34 | |
| Eli Lilly & Co. | 0.62 | 0.71 | 0.71 | 0.61 | 0.66 | |
| Gilead Sciences Inc. | 0.53 | 0.59 | 0.53 | 0.55 | 0.56 | |
| Johnson & Johnson | 0.38 | 0.35 | 0.31 | 0.35 | 0.32 | |
| Merck & Co. Inc. | 0.49 | 0.45 | 0.49 | 0.41 | 0.48 | |
| Pfizer Inc. | 0.44 | 0.43 | 0.46 | 0.29 | 0.35 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.10 | 0.11 | 0.13 | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.40 | 0.44 | 0.45 | 0.47 | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.10 | 0.04 | 0.06 | 0.09 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.51 | 0.52 | 0.50 | 0.45 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.47 | 0.46 | 0.43 | 0.45 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 55,435 ÷ 64,093 = 0.86
2 Click competitor name to see calculations.
The debt to capital ratio, inclusive of operating lease liabilities, exhibited an increasing trend from 2021 to 2022, followed by relative stabilization and a slight decrease through 2025. Total debt and total capital both increased over the period, but the rate of increase in debt moderated in the later years.
- Debt to Capital Ratio Trend
- The ratio increased from 0.84 in 2021 to 0.92 in 2022, indicating a greater proportion of financing derived from debt relative to capital. From 2022 to 2023, the ratio remained relatively stable at 0.91. This level persisted into 2024. A slight decrease to 0.86 was observed in 2025, suggesting a modest improvement in the capital structure.
- Total Debt Evolution
- Total debt, including operating lease liabilities, increased from US$33,979 million in 2021 to US$39,640 million in 2022, representing a substantial increase. A more significant rise occurred between 2022 and 2023, reaching US$65,423 million. Subsequently, debt decreased to US$60,879 million in 2024 and further to US$55,435 million in 2025, indicating a potential focus on debt reduction in the latter part of the analyzed period.
- Total Capital Evolution
- Total capital, inclusive of operating lease liabilities, followed an upward trajectory, increasing from US$40,679 million in 2021 to US$43,301 million in 2022. The most substantial increase was observed between 2022 and 2023, reaching US$71,655 million. Capital decreased to US$66,756 million in 2024 and continued to decline to US$64,093 million in 2025, though at a slower pace than the reduction in total debt.
The observed trends suggest a period of increased leverage followed by a potential shift towards a more balanced capital structure, as evidenced by the stabilization and subsequent slight decline in the debt to capital ratio, coupled with a reduction in total debt in the final two years of the period.
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Debt to Assets
Amgen Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Total assets | 90,586) | 91,839) | 97,154) | 65,121) | 61,165) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.60 | 0.65 | 0.67 | 0.60 | 0.54 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.50 | 0.44 | 0.46 | 0.52 | |
| Bristol-Myers Squibb Co. | 0.50 | 0.54 | 0.42 | 0.41 | 0.41 | |
| Danaher Corp. | 0.22 | 0.21 | 0.22 | 0.23 | 0.27 | |
| Eli Lilly & Co. | 0.38 | 0.43 | 0.39 | 0.33 | 0.35 | |
| Gilead Sciences Inc. | 0.42 | 0.45 | 0.40 | 0.40 | 0.39 | |
| Johnson & Johnson | 0.24 | 0.20 | 0.18 | 0.21 | 0.19 | |
| Merck & Co. Inc. | 0.36 | 0.32 | 0.33 | 0.28 | 0.31 | |
| Pfizer Inc. | 0.31 | 0.30 | 0.32 | 0.18 | 0.21 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.36 | 0.32 | 0.35 | 0.35 | 0.37 | |
| Vertex Pharmaceuticals Inc. | 0.00 | 0.01 | 0.02 | 0.03 | 0.04 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.35 | 0.35 | 0.34 | 0.31 | 0.32 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.32 | 0.32 | 0.30 | 0.28 | 0.30 | |
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
Debt to assets = Total debt ÷ Total assets
= 54,604 ÷ 90,586 = 0.60
2 Click competitor name to see calculations.
The debt-to-assets ratio exhibits an increasing trend from 2021 to 2023, followed by a slight decline in the subsequent two years. This indicates a changing leverage profile over the analyzed period.
- Debt to Assets Ratio - Overall Trend
- The ratio increased from 0.54 in 2021 to 0.67 in 2023, representing a 24.1% rise in leverage. This suggests the company financed a greater proportion of its assets with debt during this timeframe. The ratio then decreased to 0.65 in 2024 and further to 0.60 in 2025, indicating a modest reduction in financial leverage.
- Debt to Assets Ratio - Period Specific Observations
- The most significant increase occurred between 2022 and 2023, with the ratio rising from 0.60 to 0.67. This period coincided with a substantial increase in total debt, from US$38,945 million to US$64,613 million. While total assets also increased, the growth in debt outpaced the growth in assets. The subsequent decrease in the ratio from 2023 to 2025 is attributable to a larger percentage decrease in total debt compared to total assets.
- Debt and Asset Values
- Total debt peaked at US$64,613 million in 2023 before decreasing to US$54,604 million by 2025. Total assets increased consistently from 2021 to 2023, reaching US$97,154 million, and then experienced a slight decline to US$90,586 million by 2025. The interplay between these values drives the observed trend in the debt-to-assets ratio.
The observed fluctuations in the debt-to-assets ratio suggest a dynamic capital structure management strategy. The company appears to have increased its reliance on debt financing through 2023, followed by a period of debt reduction.
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Debt to Assets (including Operating Lease Liability)
Amgen Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current portion of long-term debt | 4,599) | 3,550) | 1,443) | 1,591) | 87) | |
| Long-term debt, excluding current portion | 50,005) | 56,549) | 63,170) | 37,354) | 33,222) | |
| Total debt | 54,604) | 60,099) | 64,613) | 38,945) | 33,309) | |
| Current operating lease liabilities (included in Accrued liabilities) | 135) | 107) | 119) | 156) | 145) | |
| Noncurrent operating lease liabilities (included in Other noncurrent liabilities) | 696) | 673) | 691) | 539) | 525) | |
| Total debt (including operating lease liability) | 55,435) | 60,879) | 65,423) | 39,640) | 33,979) | |
| Total assets | 90,586) | 91,839) | 97,154) | 65,121) | 61,165) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.61 | 0.66 | 0.67 | 0.61 | 0.56 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.51 | 0.50 | 0.45 | 0.46 | 0.53 | |
| Bristol-Myers Squibb Co. | 0.52 | 0.55 | 0.44 | 0.42 | 0.42 | |
| Danaher Corp. | 0.24 | 0.22 | 0.23 | 0.25 | 0.28 | |
| Eli Lilly & Co. | 0.39 | 0.44 | 0.41 | 0.34 | 0.36 | |
| Gilead Sciences Inc. | 0.43 | 0.46 | 0.41 | 0.41 | 0.40 | |
| Johnson & Johnson | 0.25 | 0.21 | 0.18 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.37 | 0.33 | 0.34 | 0.29 | 0.33 | |
| Pfizer Inc. | 0.32 | 0.31 | 0.33 | 0.20 | 0.23 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.34 | 0.37 | 0.37 | 0.38 | |
| Vertex Pharmaceuticals Inc. | 0.08 | 0.08 | 0.04 | 0.05 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | 0.37 | 0.35 | 0.32 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.32 | 0.29 | 0.31 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 55,435 ÷ 90,586 = 0.61
2 Click competitor name to see calculations.
The debt to assets ratio, including operating lease liability, exhibits a generally increasing trend from 2021 to 2023, followed by a stabilization and slight decrease through 2025. Total debt increased significantly over the period, while total assets also grew, though not at a consistent rate. This analysis details these observations.
- Debt to Assets Ratio - Overall Trend
- The debt to assets ratio increased from 0.56 in 2021 to 0.67 in 2023, indicating a growing proportion of assets financed by debt. The ratio then decreased slightly to 0.66 in 2024 and further to 0.61 in 2025, suggesting a moderation in the reliance on debt financing towards the end of the analyzed period.
- Total Debt
- Total debt, inclusive of operating lease liabilities, rose from US$33,979 million in 2021 to US$65,423 million in 2023, representing a substantial increase. Subsequently, debt decreased to US$60,879 million in 2024 and US$55,435 million in 2025, indicating a potential focus on debt reduction or repayment in the later years.
- Total Assets
- Total assets increased from US$61,165 million in 2021 to US$97,154 million in 2023. The rate of asset growth slowed in 2024, with assets reported at US$91,839 million, and continued to decline slightly to US$90,586 million in 2025. This suggests a potential stabilization or modest contraction in the company’s asset base following the period of rapid expansion.
The initial increase in the debt to assets ratio, coupled with the significant rise in total debt, warrants attention. However, the subsequent decrease in the ratio, alongside the reduction in total debt, suggests a potential shift towards a more conservative financial structure. The observed trends indicate a dynamic financial position, with periods of increased leverage followed by efforts to moderate debt levels.
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Financial Leverage
Amgen Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 90,586) | 91,839) | 97,154) | 65,121) | 61,165) | |
| Stockholders’ equity | 8,658) | 5,877) | 6,232) | 3,661) | 6,700) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 10.46 | 15.63 | 15.59 | 17.79 | 9.13 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | — | 40.65 | 13.00 | 8.04 | 9.51 | |
| Bristol-Myers Squibb Co. | 4.87 | 5.67 | 3.23 | 3.12 | 3.04 | |
| Danaher Corp. | 1.59 | 1.57 | 1.58 | 1.68 | 1.84 | |
| Eli Lilly & Co. | 4.24 | 5.55 | 5.94 | 4.65 | 5.44 | |
| Gilead Sciences Inc. | 2.60 | 3.05 | 2.72 | 2.97 | 3.23 | |
| Johnson & Johnson | 2.44 | 2.52 | 2.44 | 2.44 | 2.46 | |
| Merck & Co. Inc. | 2.60 | 2.53 | 2.84 | 2.37 | 2.77 | |
| Pfizer Inc. | 2.41 | 2.42 | 2.54 | 2.06 | 2.35 | |
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.29 | 1.27 | 1.29 | 1.36 | |
| Thermo Fisher Scientific Inc. | 2.07 | 1.96 | 2.11 | 2.21 | 2.33 | |
| Vertex Pharmaceuticals Inc. | 1.37 | 1.37 | 1.29 | 1.30 | 1.33 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.87 | 2.93 | 2.85 | 2.62 | 2.86 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.72 | 2.75 | 2.70 | 2.57 | 2.69 | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 90,586 ÷ 8,658 = 10.46
2 Click competitor name to see calculations.
The financial leverage of the company exhibits considerable fluctuation over the observed period. Initially, a substantial increase in leverage is noted, followed by a period of relative stability, and concluding with a significant decrease. This pattern is examined in further detail below.
- Financial Leverage Trend
- In 2021, the financial leverage ratio stood at 9.13. This value increased markedly to 17.79 in 2022, indicating a substantial rise in the proportion of assets financed by debt or other fixed-charge capital sources. The ratio remained elevated in 2023 at 15.59 and showed minimal change in 2024, registering at 15.63. However, a pronounced decline is observed in 2025, with the ratio decreasing to 10.46. This suggests a reduction in the company’s reliance on financial leverage during that year.
- Relationship to Equity
- The increase in financial leverage in 2022 coincided with a decrease in stockholders’ equity from US$6,700 million in 2021 to US$3,661 million. While equity recovered somewhat in subsequent years, reaching US$8,658 million in 2025, the initial decline likely contributed to the higher leverage ratio. The subsequent stabilization of leverage between 2023 and 2024, despite modest equity changes, suggests other factors were also at play, potentially related to debt levels or asset management.
- Relationship to Total Assets
- Total assets increased from US$61,165 million in 2021 to US$65,121 million in 2022, then experienced a significant jump to US$97,154 million in 2023. Assets decreased slightly in 2024 to US$91,839 million and again in 2025 to US$90,586 million. The initial increase in leverage alongside asset growth suggests the company was actively employing debt to finance expansion. The later decrease in leverage, despite a slight asset decline, indicates a shift in financing strategy or improved equity position.
Overall, the company’s financial leverage demonstrates a dynamic pattern. The initial increase followed by stabilization and subsequent decrease warrants further investigation into the underlying drivers of these changes, including debt management practices, equity financing activities, and asset utilization strategies.
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Interest Coverage
Amgen Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 7,711) | 4,090) | 6,717) | 6,552) | 5,893) | |
| Add: Income tax expense | 1,265) | 519) | 1,138) | 794) | 808) | |
| Add: Interest expense, net | 2,755) | 3,155) | 2,875) | 1,406) | 1,197) | |
| Earnings before interest and tax (EBIT) | 11,731) | 7,764) | 10,730) | 8,752) | 7,898) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.26 | 2.46 | 3.73 | 6.22 | 6.60 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.28 | 2.32 | 3.81 | 7.04 | 6.36 | |
| Bristol-Myers Squibb Co. | 5.93 | -3.30 | 8.24 | 7.26 | 7.07 | |
| Danaher Corp. | 16.97 | 17.71 | 18.64 | 40.30 | 32.92 | |
| Eli Lilly & Co. | 29.75 | 17.24 | 14.49 | 21.53 | 19.12 | |
| Gilead Sciences Inc. | 10.57 | 1.71 | 8.27 | 7.22 | 9.27 | |
| Johnson & Johnson | 34.55 | 23.10 | 20.51 | 79.71 | 125.46 | |
| Merck & Co. Inc. | 16.52 | 16.69 | 2.65 | 18.09 | 18.22 | |
| Pfizer Inc. | 3.82 | 3.60 | 1.48 | 29.05 | 19.83 | |
| Regeneron Pharmaceuticals Inc. | 120.42 | 87.59 | 58.52 | 82.80 | 163.75 | |
| Thermo Fisher Scientific Inc. | 6.12 | 6.03 | 5.54 | 11.56 | 17.49 | |
| Vertex Pharmaceuticals Inc. | 350.11 | 9.12 | 100.32 | 78.23 | 45.40 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 9.83 | 5.51 | 6.43 | 15.40 | 14.91 | |
| Interest Coverage, Industry | ||||||
| Health Care | 8.96 | 6.11 | 7.51 | 14.75 | 14.14 | |
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
Interest coverage = EBIT ÷ Interest expense
= 11,731 ÷ 2,755 = 4.26
2 Click competitor name to see calculations.
The analysis reveals fluctuating performance in the ability to meet interest obligations over the five-year period. Earnings before interest and tax (EBIT) and interest expense, net, both demonstrate variability, which directly impacts the interest coverage ratio.
- Overall Trend
- The interest coverage ratio exhibits a declining trend from 2021 to 2023, followed by a recovery in 2025. The ratio decreased significantly over the observed period, indicating a weakening capacity to cover interest expenses with earnings, before improving in the most recent year.
- EBIT Performance
- EBIT increased from US$7,898 million in 2021 to US$8,752 million in 2022, representing growth. Further growth was observed in 2023, reaching US$10,730 million. However, EBIT decreased substantially in 2024 to US$7,764 million, before recovering to US$11,731 million in 2025. This volatility in EBIT is a key driver of the fluctuations in the interest coverage ratio.
- Interest Expense Performance
- Interest expense, net, increased from US$1,197 million in 2021 to US$1,406 million in 2022. This increase continued in 2023, reaching US$2,875 million, and further increased to US$3,155 million in 2024. A decrease to US$2,755 million was observed in 2025. The consistent rise in interest expense from 2021 to 2024 contributed to the declining interest coverage ratio during those years.
- Interest Coverage Ratio – Detailed Analysis
- The interest coverage ratio began at 6.60 in 2021 and decreased to 6.22 in 2022. A more substantial decline occurred in 2023, with the ratio falling to 3.73. The ratio reached its lowest point in 2024 at 2.46, indicating a considerably diminished ability to cover interest obligations. The ratio improved in 2025, rising to 4.26, suggesting a partial recovery in the capacity to meet interest payments.
The interplay between EBIT and interest expense significantly influences the interest coverage ratio. While EBIT experienced growth in certain years, the concurrent increases in interest expense, particularly between 2022 and 2024, exerted downward pressure on the ratio. The recovery in EBIT in 2025, coupled with a slight decrease in interest expense, contributed to the improvement in the ratio during that year.
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Fixed Charge Coverage
Amgen Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 7,711) | 4,090) | 6,717) | 6,552) | 5,893) | |
| Add: Income tax expense | 1,265) | 519) | 1,138) | 794) | 808) | |
| Add: Interest expense, net | 2,755) | 3,155) | 2,875) | 1,406) | 1,197) | |
| Earnings before interest and tax (EBIT) | 11,731) | 7,764) | 10,730) | 8,752) | 7,898) | |
| Add: Operating lease costs | 265) | 219) | 208) | 218) | 237) | |
| Earnings before fixed charges and tax | 11,996) | 7,983) | 10,938) | 8,970) | 8,135) | |
| Interest expense, net | 2,755) | 3,155) | 2,875) | 1,406) | 1,197) | |
| Operating lease costs | 265) | 219) | 208) | 218) | 237) | |
| Fixed charges | 3,020) | 3,374) | 3,083) | 1,624) | 1,434) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 3.97 | 2.37 | 3.55 | 5.52 | 5.67 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.12 | 2.24 | 3.59 | 6.54 | 5.90 | |
| Bristol-Myers Squibb Co. | 5.27 | -2.75 | 6.69 | 6.30 | 6.01 | |
| Danaher Corp. | 8.29 | 9.05 | 9.55 | 13.41 | 10.85 | |
| Eli Lilly & Co. | 29.75 | 13.81 | 10.98 | 15.17 | 13.33 | |
| Gilead Sciences Inc. | 9.21 | 1.61 | 7.18 | 6.30 | 8.15 | |
| Johnson & Johnson | 28.82 | 18.47 | 16.50 | 38.72 | 48.16 | |
| Merck & Co. Inc. | 12.84 | 13.31 | 2.27 | 13.69 | 13.08 | |
| Pfizer Inc. | 3.37 | 3.13 | 1.34 | 18.79 | 14.22 | |
| Regeneron Pharmaceuticals Inc. | 66.71 | 53.13 | 46.55 | 68.67 | 138.96 | |
| Thermo Fisher Scientific Inc. | 5.04 | 5.01 | 4.61 | 8.12 | 12.19 | |
| Vertex Pharmaceuticals Inc. | 23.32 | 2.85 | 48.66 | 47.97 | 29.62 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 8.45 | 4.80 | 5.40 | 11.85 | 11.49 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 7.45 | 5.15 | 6.08 | 10.95 | 10.48 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 11,996 ÷ 3,020 = 3.97
2 Click competitor name to see calculations.
The company’s fixed charge coverage exhibited fluctuating performance between 2021 and 2025. Earnings before fixed charges and tax, and fixed charges themselves, both demonstrated increases over the period, but not consistently, impacting the overall coverage ratio.
- Earnings Before Fixed Charges and Tax
- Earnings before fixed charges and tax generally increased from US$8,135 million in 2021 to US$11,996 million in 2025. However, a notable decrease occurred in 2024, falling to US$7,983 million before recovering in the subsequent year. This volatility suggests potential operational or economic factors influencing profitability.
- Fixed Charges
- Fixed charges increased from US$1,434 million in 2021 to US$3,020 million in 2025. The largest increase was observed between 2022 and 2023, rising from US$1,624 million to US$3,083 million. This indicates a growing burden from obligations such as debt service and lease payments.
- Fixed Charge Coverage Ratio
- The fixed charge coverage ratio decreased from 5.67 in 2021 to 3.97 in 2025. The most significant decline occurred in 2024, with the ratio dropping to 2.37. This suggests a weakening ability to meet fixed financial obligations with earnings. While the ratio recovered somewhat in 2025, it remained below the levels observed in the earlier years of the period. The decrease in the ratio, despite increasing earnings in 2023 and 2025, is attributable to the proportionally larger increase in fixed charges.
Overall, while the company generated increasing earnings over the five-year period, the growth in fixed charges outpaced earnings growth, leading to a decline in the fixed charge coverage ratio. The substantial drop in 2024 warrants further investigation to understand the underlying causes and potential implications for financial stability.
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