Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
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- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
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Long-term Activity Ratios (Summary)
Amgen Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 analysis of long-term activity ratios reveals fluctuating performance across the observed period. Generally, the company demonstrates moderate efficiency in utilizing its assets to generate revenue, though some ratios exhibit volatility. A closer examination of individual ratios provides further insight.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a slight decline from 4.69 in 2021 to 4.53 in 2023. A recovery was noted in 2024, increasing to 4.89, but subsequently decreased to 4.44 in 2025. This suggests a variable ability to generate sales from fixed assets, potentially influenced by changes in production capacity or sales strategies. The inclusion of operating lease right-of-use assets shows a similar pattern, starting at 4.23 in 2021, declining to 4.08 in 2023, increasing to 4.51 in 2024, and then decreasing to 4.13 in 2025. The values including operating leases are consistently lower than those excluding them, indicating that these leases contribute to a lower overall asset turnover.
- Total Asset Turnover
- The total asset turnover ratio demonstrated a more pronounced decline from 0.40 in 2021 to 0.28 in 2023. A partial recovery occurred in 2024, rising to 0.35, followed by a slight increase to 0.39 in 2025. This indicates a decreasing, then stabilizing, efficiency in utilizing all assets – both fixed and current – to generate revenue. The low values suggest a relatively large asset base compared to revenue generated.
- Equity Turnover
- The equity turnover ratio exhibited significant fluctuation. It increased substantially from 3.63 in 2021 to 6.77 in 2022, then decreased to 4.32 in 2023. A further increase to 5.45 was observed in 2024, followed by a decline to 4.06 in 2025. This volatility suggests a changing relationship between revenue and shareholder equity, potentially due to shifts in financial leverage or equity structure. The ratio’s sensitivity to changes in revenue is apparent.
Overall, the observed ratios suggest a company with moderate asset utilization efficiency, but with notable fluctuations in performance across the period. The equity turnover ratio is particularly volatile, warranting further investigation into the underlying drivers of these changes.
Net Fixed Asset Turnover
Amgen Inc., net fixed asset turnover 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) | ||||||
| Product sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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
Net fixed asset turnover = Product sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally stable pattern over the five-year period, with some fluctuation. Product sales demonstrate a consistent upward trend, while property, plant, and equipment, net, also increased throughout the period. The interplay between these two factors influences the observed turnover ratio behavior.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio began at 4.69 in 2021 and decreased to 4.57 in 2022, representing a slight decline. It continued to decrease to 4.53 in 2023, reaching its lowest point during the observed period. A subsequent increase to 4.89 was noted in 2024, indicating improved efficiency in asset utilization. However, the ratio decreased again in 2025, settling at 4.44.
- Despite the fluctuations, the ratio remained within a relatively narrow range, suggesting consistent, though not dramatically changing, efficiency in generating sales from fixed assets. The 2024 increase is notable, potentially reflecting operational improvements or a change in the composition of fixed assets.
Product sales increased steadily from US$24,297 million in 2021 to US$35,148 million in 2025. This growth in sales did not consistently translate into a higher net fixed asset turnover ratio, as the net property, plant, and equipment also increased concurrently. The growth in fixed assets, while supporting increased sales, partially offset the potential for a higher turnover ratio.
The increase in property, plant, and equipment, net, from US$5,184 million in 2021 to US$7,913 million in 2025 suggests ongoing investment in fixed assets. This investment appears to be aligned with the growth in product sales, but the ratio analysis indicates that the asset base is expanding at a rate that slightly diminishes the efficiency of asset utilization as measured by the net fixed asset turnover.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Amgen Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Property, plant and equipment, net | ||||||
| Operating lease right-of-use (ROU) assets (included in Other noncurrent assets) | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Product sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a generally stable, yet fluctuating, net fixed asset turnover ratio over the five-year period. Product sales demonstrate a consistent upward trajectory, while net fixed assets also increased, though at a varying pace. The interplay between these two factors dictates the observed trends in the turnover ratio.
- Product Sales
- Product sales increased from US$24,297 million in 2021 to US$35,148 million in 2025. This represents a cumulative growth of approximately 44.7% over the period. The most significant year-over-year increase occurred between 2022 and 2023 (US$2,109 million), and again between 2023 and 2024 (US$5,116 million).
- Property, Plant & Equipment (Including Operating Lease, Right-of-Use Asset)
- Net fixed assets increased from US$5,750 million in 2021 to US$8,515 million in 2025, a cumulative increase of approximately 48.1%. Growth was relatively consistent from 2021 to 2023, with a more substantial increase observed between 2024 and 2025 (US$1,415 million). This suggests potentially increased investment in fixed assets during that latter period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio began at 4.23 in 2021, decreased to 4.08 in 2023, then increased to 4.51 in 2024 before declining slightly to 4.13 in 2025. The initial decline from 2021 to 2023 suggests a slower rate of sales generation relative to the investment in fixed assets. The subsequent increase in 2024 indicates improved efficiency in utilizing fixed assets to generate sales. However, the decrease in 2025 suggests this efficiency may have partially diminished. Despite these fluctuations, the ratio remained within a relatively narrow range throughout the period, indicating a generally consistent ability to generate sales from its fixed asset base.
The observed increase in both product sales and net fixed assets suggests overall business expansion. The fluctuations in the net fixed asset turnover ratio warrant further investigation to determine the underlying drivers, such as changes in production processes, asset utilization, or the timing of capital expenditures. The ratio’s slight decline in the most recent year may indicate a need to optimize asset utilization or manage fixed asset investments more strategically.
Total Asset Turnover
Amgen Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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
Total asset turnover = Product sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuations over the five-year period. Initially, the ratio decreased from 0.40 in 2021 to 0.38 in 2022, indicating a slightly less efficient utilization of assets in generating sales. A more pronounced decline was observed in 2023, with the ratio falling to 0.28. This suggests a significant decrease in the company’s ability to generate sales from its asset base during that year. A partial recovery occurred in 2024, as the ratio increased to 0.35. This improvement continued into 2025, with the ratio reaching 0.39, approaching the level observed in 2021.
- Total Asset Turnover Trend
- The ratio demonstrates an initial decline followed by a recovery. The substantial drop in 2023 warrants further investigation to understand the underlying causes, such as potential asset build-up without a corresponding increase in sales, or a significant increase in total assets relative to product sales. The subsequent increases in 2024 and 2025 suggest a return towards more efficient asset utilization, potentially due to improved sales strategies or asset management practices.
Product sales generally increased throughout the period, rising from US$24,297 million in 2021 to US$35,148 million in 2025. However, the growth in total assets was more volatile, with a substantial increase in 2023 followed by decreases in 2024 and 2025. This disparity between asset growth and sales growth likely contributed to the fluctuations in the total asset turnover ratio.
- Relationship to Sales and Assets
- The observed trend in total asset turnover is closely linked to the relative growth rates of product sales and total assets. While sales consistently increased, the significant asset accumulation in 2023 outpaced sales growth, resulting in a lower turnover ratio. The subsequent stabilization and slight decrease in total assets in 2024 and 2025, coupled with continued sales growth, contributed to the ratio’s recovery.
The ratio’s movement from 0.28 in 2023 to 0.39 in 2025 indicates a positive shift in asset utilization efficiency. However, the ratio has not yet returned to its initial level of 0.40 from 2021. Continued monitoring of this ratio is recommended to assess whether the improvement is sustainable and to identify any further opportunities for optimizing asset utilization.
Equity Turnover
Amgen Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Product sales | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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
Equity turnover = Product sales ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals fluctuating equity turnover ratios over the five-year period. Product sales demonstrate a consistent upward trajectory, while stockholders’ equity exhibits more volatility. The interplay between these two components drives the observed trends in equity turnover.
- Equity Turnover
- The equity turnover ratio increased significantly from 3.63 in 2021 to 6.77 in 2022. This substantial rise indicates a more efficient utilization of stockholders’ equity in generating product sales during that year. However, the ratio decreased to 4.32 in 2023, suggesting a reduced efficiency in equity utilization compared to 2022. A subsequent increase to 5.45 in 2024 indicates a partial recovery in efficiency. Finally, the ratio declined again to 4.06 in 2025, representing the lowest value in the observed period after 2021.
- Product Sales Trend
- Product sales increased steadily throughout the period, moving from US$24,297 million in 2021 to US$35,148 million in 2025. This consistent growth suggests a strong market performance and increasing revenue generation capabilities.
- Stockholders’ Equity Trend
- Stockholders’ equity experienced considerable fluctuation. A significant decrease occurred between 2021 and 2022, falling from US$6,700 million to US$3,661 million. The equity position then recovered to US$6,232 million in 2023, followed by a slight decrease to US$5,877 million in 2024. A notable increase to US$8,658 million was observed in 2025, representing the highest equity value within the analyzed timeframe. These changes in equity likely reflect decisions related to share repurchases, dividend payouts, or retained earnings.
The combined effect of increasing sales and fluctuating equity results in the observed equity turnover pattern. The decrease in equity turnover in 2023 and 2025, despite continued sales growth, suggests that the company’s equity base was increasing at a faster rate than sales, or that assets were being utilized less efficiently in relation to equity. Further investigation into the factors driving the changes in stockholders’ equity is warranted to fully understand the implications of these trends.