Stock Analysis on Net

Amgen Inc. (NASDAQ:AMGN)

Analysis of Long-term (Investment) Activity Ratios 

Microsoft Excel

Long-term Activity Ratios (Summary)

Amgen Inc., long-term (investment) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net fixed asset turnover 4.89 4.53 4.57 4.69 4.96
Net fixed asset turnover (including operating lease, right-of-use asset) 4.51 4.08 4.13 4.23 4.58
Total asset turnover 0.35 0.28 0.38 0.40 0.39
Equity turnover 5.45 4.32 6.77 3.63 2.58

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).


Net Fixed Asset Turnover
The net fixed asset turnover ratio shows a gradual decline from 4.96 in 2020 to 4.53 in 2023, indicating a decreasing efficiency in using fixed assets to generate sales over this period. However, there is an improvement in 2024, where the ratio rises to 4.89, suggesting a possible recovery or better utilization of fixed assets in the most recent year.
Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
When including operating lease right-of-use assets, a similar downward trend is observed from 4.58 in 2020 to 4.08 in 2023, reflecting reduced efficiency when considering these leased assets. The ratio then improves to 4.51 in 2024, mirroring the recovery noted in the standard net fixed asset turnover ratio.
Total Asset Turnover
The total asset turnover remains relatively stable but low throughout the period, starting at 0.39 in 2020, peaking slightly at 0.40 in 2021, then declining to 0.28 in 2023. In 2024, there is a modest rebound to 0.35. This pattern suggests fluctuating but generally limited effectiveness in utilizing total assets to generate revenue.
Equity Turnover
The equity turnover ratio exhibits significant variability, with an initial value of 2.58 in 2020. It increases sharply to 3.63 in 2021 and more than doubles to 6.77 in 2022. The ratio decreases to 4.32 in 2023 before rising again to 5.45 in 2024. This volatility indicates changing levels of efficiency in generating revenues from shareholders’ equity, with prominent peaks in 2022 and 2024.

Net Fixed Asset Turnover

Amgen Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Product sales 32,026 26,910 24,801 24,297 24,240
Property, plant and equipment, net 6,543 5,941 5,427 5,184 4,889
Long-term Activity Ratio
Net fixed asset turnover1 4.89 4.53 4.57 4.69 4.96
Benchmarks
Net Fixed Asset Turnover, Competitors2
AbbVie Inc. 10.97 10.89 11.76 11.00 8.73
Bristol-Myers Squibb Co. 6.77 6.77 7.38 7.67 7.22
Danaher Corp. 4.78 5.25 7.96 7.77 6.83
Eli Lilly & Co. 2.63 2.64 2.81 3.15 2.83
Gilead Sciences Inc. 5.28 5.07 4.93 5.27 4.90
Johnson & Johnson 4.33 4.28 4.79 4.95 4.40
Merck & Co. Inc. 2.70 2.61 2.77 2.53 2.67
Pfizer Inc. 3.46 3.14 6.22 5.52 3.07
Regeneron Pharmaceuticals Inc. 3.09 3.16 3.23 4.62 2.64
Thermo Fisher Scientific Inc. 4.61 4.54 4.84 4.71 5.45
Vertex Pharmaceuticals Inc. 8.98 8.51 8.06 6.92 6.47
Net Fixed Asset Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.18 4.12 4.98 4.98 4.31
Net Fixed Asset Turnover, Industry
Health Care 8.88 8.80 9.32 9.09 8.34

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
Net fixed asset turnover = Product sales ÷ Property, plant and equipment, net
= 32,026 ÷ 6,543 = 4.89

2 Click competitor name to see calculations.


Product Sales
Product sales demonstrate a consistent upward trend over the five-year period. Starting at 24,240 million US dollars at the end of 2020, sales remained relatively stable through 2021 and 2022 with slight increases, reaching 24,801 million US dollars in 2022. A notable acceleration in growth occurred in 2023 and 2024, culminating in a significant increase to 32,026 million US dollars by the end of 2024.
Property, Plant and Equipment, Net
The net value of property, plant, and equipment shows a steady increase throughout the analyzed timeframe. Beginning at 4,889 million US dollars in 2020, this asset base expanded progressively each year, reaching 6,543 million US dollars by the end of 2024. The growth in fixed assets suggests ongoing investment in physical infrastructure or expansion efforts.
Net Fixed Asset Turnover
The net fixed asset turnover ratio experiences a general decline from 4.96 in 2020 to 4.53 in 2023. This decreasing trend indicates a gradual reduction in the efficiency with which the company utilizes its fixed assets to generate sales. However, in 2024, there is a rebound to 4.89, suggesting improved efficiency or higher sales generation relative to fixed assets during the latest year.
Overall Analysis
The data reflects a growing business with increasing sales and expanded asset base. Despite investments in property, plant, and equipment, asset turnover efficiency slightly declined until 2023 but shows signs of recovery in 2024. The strong increase in product sales in the latter years likely enhanced operational leverage, contributing to better fixed asset utilization in the most recent period observed.

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Product sales 32,026 26,910 24,801 24,297 24,240
 
Property, plant and equipment, net 6,543 5,941 5,427 5,184 4,889
Operating lease right-of-use (ROU) assets (included in Other noncurrent assets) 557 651 579 566 408
Property, plant and equipment, net (including operating lease, right-of-use asset) 7,100 6,592 6,006 5,750 5,297
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1 4.51 4.08 4.13 4.23 4.58
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2
AbbVie Inc. 9.62 9.47 10.24 9.57 7.46
Bristol-Myers Squibb Co. 5.78 5.60 6.18 6.66 6.30
Danaher Corp. 3.93 4.26 6.35 6.10 5.30
Eli Lilly & Co. 2.48 2.45 2.63 2.93 2.63
Gilead Sciences Inc. 4.83 4.57 4.51 4.77 4.34
Johnson & Johnson 4.11 4.07 4.54 4.72 4.18
Merck & Co. Inc. 2.55 2.45 2.60 2.33 2.43
Pfizer Inc. 3.08 2.72 5.25 4.64 2.79
Regeneron Pharmaceuticals Inc. 2.95 3.11 3.17 4.52 2.58
Thermo Fisher Scientific Inc. 3.97 3.89 4.13 3.98 4.82
Vertex Pharmaceuticals Inc. 4.26 6.79 6.13 5.32 4.83
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Pharmaceuticals, Biotechnology & Life Sciences 3.78 3.71 4.48 4.45 3.91
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Health Care 7.33 7.17 7.48 7.17 6.51

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
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)
= 32,026 ÷ 7,100 = 4.51

2 Click competitor name to see calculations.


Product Sales
Product sales exhibited a steady upward trend over the analyzed period. Starting at US$24,240 million in 2020, sales slightly increased to US$24,297 million in 2021, followed by a more moderate rise to US$24,801 million in 2022. A notable acceleration occurred in 2023 with sales reaching US$26,910 million, and this growth continued robustly into 2024, achieving US$32,026 million. The consistent increase suggests strengthening market demand or expanded product offerings.
Property, Plant, and Equipment, Net
The net value of property, plant, and equipment (including operating lease and right-of-use assets) showed a continuous growth pattern throughout the analyzed years. Beginning at US$5,297 million in 2020, the figure increased steadily each year, reaching US$5,750 million in 2021, US$6,006 million in 2022, US$6,592 million in 2023, and US$7,100 million in 2024. This incremental growth indicates ongoing investments in fixed assets, likely reflecting capacity expansion, modernization, or strategic capital expenditures to support business operations.
Net Fixed Asset Turnover
The net fixed asset turnover ratio, which measures revenue generated per unit of net fixed assets, indicates efficiency in the utilization of fixed assets. This ratio declined from 4.58 in 2020 to 4.23 in 2021, followed by further declines to 4.13 in 2022 and 4.08 in 2023. The decreasing trend over these years suggests that net fixed assets grew at a faster pace than product sales, leading to reduced turnover efficiency. However, in 2024, the ratio increased to 4.51, approaching the initial 2020 level, which implies a recovery in asset utilization efficiency possibly due to stronger sales growth relative to asset base expansion in that year.

Total Asset Turnover

Amgen Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Product sales 32,026 26,910 24,801 24,297 24,240
Total assets 91,839 97,154 65,121 61,165 62,948
Long-term Activity Ratio
Total asset turnover1 0.35 0.28 0.38 0.40 0.39
Benchmarks
Total Asset Turnover, Competitors2
AbbVie Inc. 0.42 0.40 0.42 0.38 0.30
Bristol-Myers Squibb Co. 0.52 0.47 0.48 0.42 0.36
Danaher Corp. 0.31 0.28 0.37 0.35 0.29
Eli Lilly & Co. 0.57 0.53 0.58 0.58 0.53
Gilead Sciences Inc. 0.48 0.43 0.43 0.40 0.36
Johnson & Johnson 0.49 0.51 0.51 0.52 0.47
Merck & Co. Inc. 0.55 0.56 0.54 0.46 0.52
Pfizer Inc. 0.30 0.26 0.51 0.45 0.28
Regeneron Pharmaceuticals Inc. 0.38 0.40 0.42 0.63 0.50
Thermo Fisher Scientific Inc. 0.44 0.43 0.46 0.41 0.47
Vertex Pharmaceuticals Inc. 0.49 0.43 0.49 0.56 0.53
Total Asset Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.43 0.40 0.47 0.45 0.39
Total Asset Turnover, Industry
Health Care 0.75 0.73 0.75 0.70 0.64

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
Total asset turnover = Product sales ÷ Total assets
= 32,026 ÷ 91,839 = 0.35

2 Click competitor name to see calculations.


Product Sales
Product sales exhibited a consistent upward trend over the five-year period. Starting at $24,240 million in 2020, sales experienced marginal growth to $24,297 million in 2021 and then increased more noticeably to $24,801 million in 2022. The upward momentum continued strongly in 2023 and 2024, with sales reaching $26,910 million and $32,026 million respectively, indicating accelerating revenue growth in the latter years.
Total Assets
Total assets displayed a fluctuating pattern. From $62,948 million in 2020, total assets slightly decreased to $61,165 million in 2021, followed by a moderate increase to $65,121 million in 2022. A significant rise occurred in 2023, reaching $97,154 million. However, this was followed by a decline to $91,839 million in 2024. Overall, total assets increased substantially from 2020 to 2024 but with notable volatility especially between 2022 and 2024.
Total Asset Turnover
The total asset turnover ratio showed a downward trend over the period. Starting at 0.39 in 2020, it slightly improved to 0.40 in 2021 but then progressively declined to 0.38 in 2022. A more pronounced decrease was observed in 2023 to 0.28, followed by a partial recovery to 0.35 in 2024. This pattern indicates that asset efficiency in generating sales weakened over most of the period despite some improvement in the final year.
Overall Insights
The increasing product sales against the backdrop of a rising but volatile asset base suggests that while revenue generation improved significantly, the company faced variability in asset utilization. The decline and subsequent partial recovery in total asset turnover signal decreasing efficiency in asset use for sales generation over much of the timeframe, underscoring potential challenges in managing asset productivity amid growth.

Equity Turnover

Amgen Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Product sales 32,026 26,910 24,801 24,297 24,240
Stockholders’ equity 5,877 6,232 3,661 6,700 9,409
Long-term Activity Ratio
Equity turnover1 5.45 4.32 6.77 3.63 2.58
Benchmarks
Equity Turnover, Competitors2
AbbVie Inc. 16.94 5.24 3.36 3.65 3.50
Bristol-Myers Squibb Co. 2.96 1.53 1.49 1.29 1.12
Danaher Corp. 0.48 0.45 0.63 0.65 0.56
Eli Lilly & Co. 3.17 3.17 2.68 3.15 4.35
Gilead Sciences Inc. 1.48 1.18 1.27 1.28 1.34
Johnson & Johnson 1.24 1.24 1.24 1.27 1.31
Merck & Co. Inc. 1.39 1.60 1.29 1.28 1.90
Pfizer Inc. 0.72 0.67 1.06 1.06 0.67
Regeneron Pharmaceuticals Inc. 0.48 0.51 0.54 0.86 0.77
Thermo Fisher Scientific Inc. 0.86 0.92 1.02 0.96 0.93
Vertex Pharmaceuticals Inc. 0.67 0.56 0.64 0.75 0.71
Equity Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.27 1.15 1.24 1.27 1.22
Equity Turnover, Industry
Health Care 2.10 2.00 1.97 1.91 1.89

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
Equity turnover = Product sales ÷ Stockholders’ equity
= 32,026 ÷ 5,877 = 5.45

2 Click competitor name to see calculations.


Product Sales Trend
Product sales exhibit an overall increasing trend from 2020 to 2024, rising from $24,240 million in 2020 to $32,026 million in 2024. The growth is steady, with a moderate increase between 2020 and 2022, followed by a more pronounced acceleration in sales in 2023 and a substantial rise in 2024.
Stockholders’ Equity Trend
Stockholders' equity shows a declining pattern from 2020 through 2022, dropping significantly from $9,409 million to $3,661 million. While there is a partial recovery in 2023 and 2024, with equity increasing to $6,232 million and then slightly decreasing to $5,877 million, the levels remain well below the 2020 figure. This indicates a volatile equity base with potential concerns regarding capital structure or retained earnings during this period.
Equity Turnover Ratio Analysis
The equity turnover ratio fluctuates considerably across the years. It starts at 2.58 in 2020, rises sharply to a peak of 6.77 in 2022, then decreases to 4.32 in 2023 before moving back upward to 5.45 in 2024. The peak in 2022 suggests a period of high efficiency in utilizing equity to generate sales, despite the lower equity base at that time. The variations imply changes in operational efficiency and capital utilization over the period.
Summary Insights
While product sales consistently increase, the stockholders’ equity undergoes notable contraction and partial recovery, indicating shifts in financial strategy, capital management, or earnings retention. The equity turnover ratio’s high volatility highlights changing efficiency in the use of equity capital to produce sales revenue. Collectively, these trends suggest a dynamic financial environment with strengthening sales performance but fluctuating equity stability and utilization efficiency.