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

Amgen Inc. (NASDAQ:AMGN)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Amgen Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 74.59% 80.38% 81.80% 81.33% 80.99%
Operating profit margin 37.70% 43.57% 45.55% 45.76% 44.74%
Net profit margin 29.97% 35.32% 37.25% 9.08% 35.27%
Return on Investment
Return on equity (ROE) 77.20% 81.07% 67.15% 7.84% 25.85%
Return on assets (ROA) 11.54% 13.13% 12.64% 2.48% 9.95%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Amgen Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Amgen Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Amgen Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Amgen Inc.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
ROA A profitability ratio calculated as net income divided by total assets. Amgen Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Gross Profit Margin

Amgen Inc., gross profit margin 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)
Gross profit from product sales 18,081  17,848  18,432  17,726  17,730 
Product sales 24,240  22,204  22,533  21,795  21,892 
Profitability Ratio
Gross profit margin1 74.59% 80.38% 81.80% 81.33% 80.99%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 50.49% 52.46% 51.32% 47.75% 54.09%
AbbVie Inc. 66.41% 77.64% 76.44% 75.05% 77.25%
Bristol-Myers Squibb Co. 72.31% 69.10% 70.98% 70.80% 74.54%
Eli Lilly & Co. 77.66% 78.85% 73.81% 73.46% 73.35%
Gilead Sciences Inc. 81.23% 78.86% 77.61% 82.97% 85.77%
Illumina Inc. 68.01% 69.63% 69.01% 66.35% 69.48%
Johnson & Johnson 65.58% 66.42% 66.79% 66.84% 69.84%
Merck & Co. Inc. 67.74% 69.87% 68.06% 68.16% 65.10%
Pfizer Inc. 79.26% 80.25% 79.03% 78.61% 76.66%
Regeneron Pharmaceuticals Inc. 86.82% 90.05% 93.53% 93.24% 93.83%
Vertex Pharmaceuticals Inc. 88.14% 86.84% 86.56% 88.95% 87.64%
Zoetis Inc. 69.18% 68.18% 67.19% 66.55% 65.92%

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
Gross profit margin = 100 × Gross profit from product sales ÷ Product sales
= 100 × 18,081 ÷ 24,240 = 74.59%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Amgen Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

Amgen Inc., operating profit margin 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)
Operating income 9,139  9,674  10,263  9,973  9,794 
Product sales 24,240  22,204  22,533  21,795  21,892 
Profitability Ratio
Operating profit margin1 37.70% 43.57% 45.55% 45.76% 44.74%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 15.48% 14.21% 11.94% 6.30% 15.27%
AbbVie Inc. 24.81% 39.03% 19.49% 33.99% 36.60%
Bristol-Myers Squibb Co. -21.60% 22.62% 22.69% 17.39% 23.83%
Eli Lilly & Co. 24.69% 22.29% 15.15% 9.38% 16.30%
Gilead Sciences Inc. 16.72% 19.38% 37.83% 55.04% 58.87%
Illumina Inc. 17.91% 27.80% 26.49% 22.02% 24.48%
Johnson & Johnson 23.60% 24.15% 24.27% 24.07% 28.72%
Merck & Co. Inc. 16.47% 24.77% 19.62% 16.28% 13.51%
Pfizer Inc. 19.47% 25.46% 26.10% 25.92% 22.73%
Regeneron Pharmaceuticals Inc. 42.09% 28.10% 37.77% 35.41% 27.38%
Vertex Pharmaceuticals Inc. 46.03% 28.77% 20.84% 4.95% 0.58%
Zoetis Inc. 33.62% 31.42% 31.12% 32.15% 28.48%
Operating Profit Margin, Sector
Pharmaceuticals & Biotechnology 18.21% 25.89% 24.29% 25.36% 28.18%
Operating Profit Margin, Industry
Health Care 14.88% 18.67% 17.79% 18.39% 19.66%

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
Operating profit margin = 100 × Operating income ÷ Product sales
= 100 × 9,139 ÷ 24,240 = 37.70%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Amgen Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Net Profit Margin

Amgen Inc., net profit margin 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 
Product sales 24,240  22,204  22,533  21,795  21,892 
Profitability Ratio
Net profit margin1 29.97% 35.32% 37.25% 9.08% 35.27%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 12.99% 11.56% 7.74% 1.74% 6.71%
AbbVie Inc. 10.08% 23.69% 17.36% 18.82% 23.22%
Bristol-Myers Squibb Co. -21.20% 13.15% 21.81% 4.85% 22.94%
Eli Lilly & Co. 25.24% 37.27% 13.16% -0.89% 12.90%
Gilead Sciences Inc. 0.51% 24.35% 25.16% 18.03% 45.07%
Illumina Inc. 20.25% 28.28% 24.78% 26.38% 19.29%
Johnson & Johnson 17.82% 18.42% 18.75% 1.70% 23.01%
Merck & Co. Inc. 14.72% 21.01% 14.71% 5.97% 9.85%
Pfizer Inc. 22.95% 31.45% 20.79% 40.55% 13.66%
Regeneron Pharmaceuticals Inc. 41.35% 26.91% 36.42% 20.41% 18.42%
Vertex Pharmaceuticals Inc. 43.70% 28.27% 68.80% 10.59% -6.58%
Zoetis Inc. 24.54% 23.96% 24.52% 16.28% 16.80%
Net Profit Margin, Sector
Pharmaceuticals & Biotechnology 13.63% 23.19% 19.80% 12.42% 20.64%
Net Profit Margin, Industry
Health Care 11.26% 16.41% 14.00% 9.98% 14.08%

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
Net profit margin = 100 × Net income ÷ Product sales
= 100 × 7,264 ÷ 24,240 = 29.97%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Amgen Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Return on Equity (ROE)

Amgen Inc., ROE 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 
Stockholders’ equity 9,409  9,673  12,500  25,241  29,875 
Profitability Ratio
ROE1 77.20% 81.07% 67.15% 7.84% 25.85%
Benchmarks
ROE, Competitors2
Abbott Laboratories 13.71% 11.86% 7.76% 1.54% 6.82%
AbbVie Inc. 35.30% 104.16% 128.41%
Bristol-Myers Squibb Co. -23.84% 6.66% 35.07% 8.58% 27.55%
Eli Lilly & Co. 109.79% 319.09% 32.88% -1.76% 19.54%
Gilead Sciences Inc. 0.68% 23.91% 25.51% 22.64% 71.48%
Illumina Inc. 13.98% 21.72% 21.98% 26.41% 21.06%
Johnson & Johnson 23.25% 25.42% 25.60% 2.16% 23.49%
Merck & Co. Inc. 27.91% 37.99% 23.30% 6.97% 9.78%
Pfizer Inc. 15.21% 25.77% 17.59% 29.88% 12.12%
Regeneron Pharmaceuticals Inc. 31.86% 19.08% 27.91% 19.51% 20.13%
Vertex Pharmaceuticals Inc. 31.22% 19.34% 47.28% 12.99% -9.69%
Zoetis Inc. 43.46% 55.39% 65.35% 48.81% 55.21%
ROE, Sector
Pharmaceuticals & Biotechnology 18.05% 29.60% 27.94% 14.55% 23.11%
ROE, Industry
Health Care 15.90% 23.37% 21.29% 13.59% 18.84%

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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 7,264 ÷ 9,409 = 77.20%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Amgen Inc.’s ROE improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Return on Assets (ROA)

Amgen Inc., ROA 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 
Total assets 62,948  59,707  66,416  79,954  77,626 
Profitability Ratio
ROA1 11.54% 13.13% 12.64% 2.48% 9.95%
Benchmarks
ROA, Competitors2
Abbott Laboratories 6.20% 5.43% 3.53% 0.63% 2.66%
AbbVie Inc. 3.07% 8.84% 9.58% 7.50% 9.01%
Bristol-Myers Squibb Co. -7.61% 2.65% 14.06% 3.00% 13.22%
Eli Lilly & Co. 13.28% 21.17% 7.36% -0.45% 7.05%
Gilead Sciences Inc. 0.18% 8.74% 8.57% 6.58% 23.70%
Illumina Inc. 8.65% 13.70% 11.87% 13.81% 10.81%
Johnson & Johnson 8.41% 9.59% 10.00% 0.83% 11.71%
Merck & Co. Inc. 7.72% 11.66% 7.53% 2.72% 4.11%
Pfizer Inc. 6.23% 9.72% 7.00% 12.40% 4.20%
Regeneron Pharmaceuticals Inc. 20.47% 14.29% 20.83% 13.67% 12.84%
Vertex Pharmaceuticals Inc. 23.07% 14.15% 33.57% 7.43% -3.87%
Zoetis Inc. 12.04% 12.99% 13.25% 10.06% 10.73%
ROA, Sector
Pharmaceuticals & Biotechnology 5.41% 9.30% 9.07% 5.04% 8.67%
ROA, Industry
Health Care 5.64% 8.44% 7.94% 5.12% 7.42%

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
ROA = 100 × Net income ÷ Total assets
= 100 × 7,264 ÷ 62,948 = 11.54%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Amgen Inc.’s ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.