Amgen Inc. (NASDAQ:AMGN)

The analysis of key turnover ratios over the examined quarterly periods reveals several noteworthy trends and fluctuations.

Net Fixed Asset Turnover

This ratio exhibits a generally stable pattern, fluctuating modestly between approximately 4.5 and 5.1. Starting from 4.93 in early 2021, it remains relatively consistent with a slight downward tendency through 2022 and early 2023, reaching lows near 4.53–4.56. From mid-2023 onwards, the ratio shows a gradual improving trend, peaking at 5.06 in late 2024, before settling near 4.9 again by mid-2025. These movements indicate consistent efficiency in utilizing fixed assets to generate sales with some cyclical variation but no dramatic changes over the period.

Total Asset Turnover

This ratio displays more volatility and a wider range of values. Initially fluctuating around 0.37 to 0.41 during 2021 and early 2022, the ratio declines markedly to around 0.28 through most of 2023. Starting in early 2024, the total asset turnover gradually recovers, trending upward from 0.30 to 0.38 by mid-2025. The early 2023 trough suggests a period of reduced overall asset efficiency or increased asset base without proportional sales growth, followed by a recovery phase indicating improved asset utilization later.

Equity Turnover

The equity turnover ratio shows the highest volatility and noteworthy spikes. From 2021 through early 2022, it ranges from approximately 2.5 to 3.6, then surges dramatically to an extreme peak of 26.68 in the first quarter of 2022. This spike is followed by a rapid decline to 6.7–6.8 range by the end of 2022. Throughout 2023 and 2024, the ratio continues to decline more gradually but remains elevated relative to the initial 2021 figures, fluctuating mainly between 3.3 and 5.6. The fluctuations suggest significant changes in equity and sales relationship—likely driven by share structure changes, equity base adjustments, or exceptional revenue events—resulting in varying turnover intensity. The extreme jump and subsequent correction indicate a possibly anomalous event during early 2022 affecting this metric.

In summary, the net fixed asset turnover has remained relatively stable indicating consistent fixed asset efficiency, while total asset turnover experienced a notable dip and moderate recovery reflecting fluctuating asset utilization. Equity turnover presents significant variability with an unusual spike followed by normalization, pointing to substantial equity base or revenue variation during the period analyzed.

Product Sales

The product sales exhibit variability across the analyzed periods, with notable fluctuations on a quarterly basis. Initially, sales grew from 5,592 million USD in Q1 2021 to a peak of 6,552 million USD in Q4 2021. However, this was followed by a decline in early 2022, dipping to 5,731 million USD in Q1 2022 before recovering and reaching a new high of 7,833 million USD in Q4 2023. The sales continue to show an overall upward trend with some short-term decreases, ending at 8,771 million USD in Q2 2025. This pattern suggests a generally positive growth trajectory, albeit with periodic softness in certain quarters.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment steadily increased throughout the period. Starting at 4,855 million USD in Q1 2021, it rose consistently each quarter, reaching 6,855 million USD by Q2 2025. The growth in net fixed assets indicates ongoing investment and expansion in the company’s physical capital base, which supports operational capacity enhancement over time.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures sales generated per unit of net fixed assets, displayed a gradual decline from 4.93 in Q1 2021 to a low of 4.53 in Q4 2023. Following this trough, the ratio improved somewhat to 4.91 by Q2 2025. This indicates that while the company expanded its asset base substantially, the efficiency with which those assets generated sales decreased initially but showed signs of recovery in the more recent quarters. This fluctuation could suggest phases of asset buildup before corresponding revenue increases are realized or potentially a shift in the asset utilization strategy.

Overall Analysis

Overall, the data reflects a scenario where the company has been investing consistently in property and equipment while experiencing general growth in product sales with intermittent fluctuations. The initial decline and later partial recovery in the fixed asset turnover ratio imply a period of capital investment possibly ahead of sales gains. The later improvement in this efficiency measure aligns with the resumed upward movement in sales, indicating better alignment between asset deployment and revenue generation over time.

Product Sales

Product sales demonstrated notable fluctuations with a general upward trajectory over the observed periods. Starting at 5,592 million US dollars, sales increased steadily into late 2021, peaking at 6,552 million by December 2021. There was a slight decline in early 2022, followed by recovery and further growth, leading to a robust peak of 8,716 million by December 2024. However, a modest decrease was observed in the first quarter of 2025, followed by an increase to 8,771 million in the subsequent quarter, reflecting a generally strong sales performance with periods of volatility and recovery.

Total Assets

Total assets exhibited variability throughout the periods. Initially, assets decreased from 62,539 million to 59,196 million by the first quarter of 2022, followed by a recovery to 65,121 million by the end of 2022. Significant asset growth occurred in 2023, reaching a peak of 97,154 million in December 2023. After this peak, total assets gradually declined, stabilizing around 87,897 million by mid-2025. The pattern indicates periods of asset accumulation and contraction, possibly reflecting strategic investment cycles or asset revaluation.

Total Asset Turnover Ratio

The total asset turnover ratio, which measures efficiency in using assets to generate sales, showed a declining trend from 0.38 in March 2021 to 0.28 throughout 2023. This suggests a reduction in asset utilization efficiency during this timeframe. From early 2024 onward, there was a gradual recovery in this ratio, improving to 0.38 by mid-2025, indicating enhancements in generating revenue from asset base despite fluctuations in asset levels.

Summary of Trends

Overall, the data reflects a company experiencing growth in product sales alongside fluctuating asset levels, with efficiency in asset usage declining initially but recovering in recent periods. The initial decline in asset turnover may suggest challenges in maintaining efficiency amid asset growth, while the later improvement points to effective management or operational optimizations. The increase in product sales, particularly in the latter periods, indicates strong market performance possibly supporting asset utilization and profitability moving forward.

Product Sales Trend

Product sales exhibit a generally cyclical pattern with fluctuations across quarters. Initial figures demonstrate a growth trend from 5592 million USD at the start of 2021 to a peak of 6552 million USD by the end of 2021. This is followed by a slight dip in early 2022 before recovering and increasing steadily thereafter. Notably, there is a significant jump to 7833 million USD in December 2023 and a continuation of relatively high sales approaching 8771 million USD by mid-2025. The overall sales trajectory indicates robust revenue growth with some seasonal or operational variability.

Stockholders’ Equity Trend

The stockholders' equity values show considerable volatility during the observed period. Beginning at 9334 million USD in early 2021, the equity drops sharply to 6700 million USD by year-end 2021 and then plummets further to 916 million USD by March 2022, representing a steep decline. A recovery pattern follows from mid-2022 through late 2023, peaking at 7656 million USD. However, from 2024 onward, the equity fluctuates, decreasing to a low near 5022 million USD in early 2024 and then increasing inconsistently, ending at 7428 million USD by mid-2025. These large swings suggest possible significant financial events, capital structure changes, or adjustments affecting shareholder equity during this period.

Equity Turnover Ratio Analysis

The equity turnover ratio shows marked instability in the analyzed quarters. Early 2021 ratios range between 2.56 and 3.63, indicating modest use of equity to generate sales. However, in early 2022, the ratio spikes dramatically to 26.68 before decreasing progressively over subsequent quarters back to a range between 3 and 6.5. This spike may be correlated with the sharp drop in stockholders' equity and a relative maintenance or increase in sales, leading to higher turnover. Post-spike ratios stabilize around a moderate level, suggesting normalization of the relationship between sales and equity after significant fluctuations.

Overall Observations

The data reflects strong sales growth with seasonal or quarterly variability, alongside considerable swings in stockholders' equity. The extreme changes in equity combined with the spikes in equity turnover suggest episodes of financial restructuring or one-time adjustments affecting the company's capital base. Despite these fluctuations, the company's ability to generate sales from equity appears to return to more consistent levels over time. This indicates operational resilience but also highlights potential financial volatility during certain periods.