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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Return on Sales
Gross profit margin 80.38% 81.80% 81.33% 80.99% 79.82%
Operating profit margin 43.57% 45.55% 45.76% 44.74% 40.44%
Net profit margin 35.32% 37.25% 9.08% 35.27% 33.13%
Return on Investment
Return on equity (ROE) 81.07% 67.15% 7.84% 25.85% 24.71%
Return on assets (ROA) 13.13% 12.64% 2.48% 9.95% 9.69%

Based on: 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), 10-K (filing date: 2016-02-16).

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Amgen Inc.’s operating profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Amgen Inc.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Amgen Inc.’s ROE improved from 2017 to 2018 and from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Amgen Inc.’s ROA improved from 2017 to 2018 and from 2018 to 2019.

Gross Profit Margin

Amgen Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Gross profit from product sales 17,848  18,432  17,726  17,730  16,717 
Product sales 22,204  22,533  21,795  21,892  20,944 
Profitability Ratio
Gross profit margin1 80.38% 81.80% 81.33% 80.99% 79.82%
Benchmarks
Gross Profit Margin, Competitors2
Abbott Laboratories 52.46% 51.32% 47.75% 54.09% 54.19%
AbbVie Inc. 77.64% 76.44% 75.05% 77.25% 80.31%
Bristol-Myers Squibb Co. 69.10% 70.98% 70.80% 74.54% 76.39%
Eli Lilly & Co. 78.85% 73.81% 73.46% 73.35% 74.76%
Gilead Sciences Inc. 78.86% 77.61% 82.97% 85.77% 87.54%
Illumina Inc. 69.63% 69.01% 66.35% 69.48% 69.80%
Johnson & Johnson 66.42% 66.79% 66.84% 69.84% 69.27%
Merck & Co. Inc. 69.87% 68.06% 68.16% 65.10% 62.19%
Pfizer Inc. 80.25% 79.03% 78.61% 76.66% 80.25%
Regeneron Pharmaceuticals Inc. 90.05% 93.53% 93.24% 93.83% 90.43%
Vertex Pharmaceuticals Inc. 86.84% 86.56% 88.95% 87.64% 87.94%
Zoetis Inc. 68.18% 67.19% 66.55% 65.92% 63.53%

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Gross profit margin = 100 × Gross profit from product sales ÷ Product sales
= 100 × 17,848 ÷ 22,204 = 80.38%

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 improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Operating Profit Margin

Amgen Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Operating income 9,674  10,263  9,973  9,794  8,470 
Product sales 22,204  22,533  21,795  21,892  20,944 
Profitability Ratio
Operating profit margin1 43.57% 45.55% 45.76% 44.74% 40.44%
Benchmarks
Operating Profit Margin, Competitors2
Abbott Laboratories 14.21% 11.94% 6.30% 15.27% 14.05%
AbbVie Inc. 39.03% 19.49% 33.99% 36.60% 32.97%
Bristol-Myers Squibb Co. 22.62% 22.69% 17.39% 23.83% 11.41%
Eli Lilly & Co. 22.29% 15.15% 9.38% 16.30% 13.47%
Gilead Sciences Inc. 19.38% 37.83% 55.04% 58.87% 69.03%
Illumina Inc. 27.80% 26.49% 22.02% 24.48% 27.61%
Johnson & Johnson 24.15% 24.27% 24.07% 28.72% 25.05%
Merck & Co. Inc. 24.77% 19.62% 16.28% 13.51% 17.54%
Pfizer Inc. 25.46% 26.10% 25.92% 22.73% 24.20%
Regeneron Pharmaceuticals Inc. 28.10% 37.77% 35.41% 27.38% 30.51%
Vertex Pharmaceuticals Inc. 28.77% 20.84% 4.95% 0.58% -45.23%
Zoetis Inc. 31.42% 31.12% 32.15% 28.48% 15.74%
Operating Profit Margin, Sector
Pharmaceuticals & Biotechnology 25.89% 24.29% 25.36% 28.18% 27.72%
Operating Profit Margin, Industry
Health Care 18.67% 17.79% 18.39% 19.66% 19.75%

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Product sales
= 100 × 9,674 ÷ 22,204 = 43.57%

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 2017 to 2018 and from 2018 to 2019.

Net Profit Margin

Amgen Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income 7,842  8,394  1,979  7,722  6,939 
Product sales 22,204  22,533  21,795  21,892  20,944 
Profitability Ratio
Net profit margin1 35.32% 37.25% 9.08% 35.27% 33.13%
Benchmarks
Net Profit Margin, Competitors2
Abbott Laboratories 11.56% 7.74% 1.74% 6.71% 21.68%
AbbVie Inc. 23.69% 17.36% 18.82% 23.22% 22.50%
Bristol-Myers Squibb Co. 13.15% 21.81% 4.85% 22.94% 9.45%
Eli Lilly & Co. 37.27% 13.16% -0.89% 12.90% 12.07%
Gilead Sciences Inc. 24.35% 25.16% 18.03% 45.07% 56.32%
Illumina Inc. 28.28% 24.78% 26.38% 19.29% 20.79%
Johnson & Johnson 18.42% 18.75% 1.70% 23.01% 21.99%
Merck & Co. Inc. 21.01% 14.71% 5.97% 9.85% 11.25%
Pfizer Inc. 31.45% 20.79% 40.55% 13.66% 14.25%
Regeneron Pharmaceuticals Inc. 26.91% 36.42% 20.41% 18.42% 15.50%
Vertex Pharmaceuticals Inc. 28.27% 68.80% 10.59% -6.58% -53.89%
Zoetis Inc. 23.96% 24.52% 16.28% 16.80% 7.11%
Net Profit Margin, Sector
Pharmaceuticals & Biotechnology 23.19% 19.80% 12.42% 20.64% 21.84%
Net Profit Margin, Industry
Health Care 16.41% 14.00% 9.98% 14.08% 15.10%

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
Net profit margin = 100 × Net income ÷ Product sales
= 100 × 7,842 ÷ 22,204 = 35.32%

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 improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Return on Equity (ROE)

Amgen Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income 7,842  8,394  1,979  7,722  6,939 
Stockholders’ equity 9,673  12,500  25,241  29,875  28,083 
Profitability Ratio
ROE1 81.07% 67.15% 7.84% 25.85% 24.71%
Benchmarks
ROE, Competitors2
Abbott Laboratories 11.86% 7.76% 1.54% 6.82% 20.85%
AbbVie Inc. 104.16% 128.41% 130.39%
Bristol-Myers Squibb Co. 6.66% 35.07% 8.58% 27.55% 10.97%
Eli Lilly & Co. 319.09% 32.88% -1.76% 19.54% 16.53%
Gilead Sciences Inc. 23.91% 25.51% 22.64% 71.48% 97.70%
Illumina Inc. 21.72% 21.98% 26.41% 21.06% 24.97%
Johnson & Johnson 25.42% 25.60% 2.16% 23.49% 21.66%
Merck & Co. Inc. 37.99% 23.30% 6.97% 9.78% 9.94%
Pfizer Inc. 25.77% 17.59% 29.88% 12.12% 10.75%
Regeneron Pharmaceuticals Inc. 19.08% 27.91% 19.51% 20.13% 17.40%
Vertex Pharmaceuticals Inc. 19.34% 47.28% 12.99% -9.69% -59.19%
Zoetis Inc. 55.39% 65.35% 48.81% 55.21% 31.74%
ROE, Sector
Pharmaceuticals & Biotechnology 29.60% 27.94% 14.55% 23.11% 22.96%
ROE, Industry
Health Care 23.37% 21.29% 13.59% 18.84% 18.48%

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 7,842 ÷ 9,673 = 81.07%

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 2017 to 2018 and from 2018 to 2019.

Return on Assets (ROA)

Amgen Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income 7,842  8,394  1,979  7,722  6,939 
Total assets 59,707  66,416  79,954  77,626  71,576 
Profitability Ratio
ROA1 13.13% 12.64% 2.48% 9.95% 9.69%
Benchmarks
ROA, Competitors2
Abbott Laboratories 5.43% 3.53% 0.63% 2.66% 10.72%
AbbVie Inc. 8.84% 9.58% 7.50% 9.01% 9.70%
Bristol-Myers Squibb Co. 2.65% 14.06% 3.00% 13.22% 4.93%
Eli Lilly & Co. 21.17% 7.36% -0.45% 7.05% 6.77%
Gilead Sciences Inc. 8.74% 8.57% 6.58% 23.70% 34.93%
Illumina Inc. 13.70% 11.87% 13.81% 10.81% 12.52%
Johnson & Johnson 9.59% 10.00% 0.83% 11.71% 11.55%
Merck & Co. Inc. 11.66% 7.53% 2.72% 4.11% 4.36%
Pfizer Inc. 9.72% 7.00% 12.40% 4.20% 4.16%
Regeneron Pharmaceuticals Inc. 14.29% 20.83% 13.67% 12.84% 11.34%
Vertex Pharmaceuticals Inc. 14.15% 33.57% 7.43% -3.87% -22.26%
Zoetis Inc. 12.99% 13.25% 10.06% 10.73% 4.28%
ROA, Sector
Pharmaceuticals & Biotechnology 9.30% 9.07% 5.04% 8.67% 9.37%
ROA, Industry
Health Care 8.44% 7.94% 5.12% 7.42% 7.66%

Based on: 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), 10-K (filing date: 2016-02-16).

1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 7,842 ÷ 59,707 = 13.13%

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 2017 to 2018 and from 2018 to 2019.