Amgen Inc. (NASDAQ:AMGN)

Gross Profit Margin

The gross profit margin demonstrated relative stability from March 2021 through September 2023, mainly fluctuating around 73-74%. Beginning in December 2023, a notable downward trend is evident, with the margin declining sharply from 68.6% to 58.71% by September 2024, followed by a slight recovery to 61.48% in March 2025.

Operating Profit Margin

The operating profit margin showed considerable variability over the periods. Starting near 37% in early 2021, it dipped below 31% during mid to late 2021, then rebounded to peak above 39% by December 2021. From early 2023 onward, a gradual decline ensued, reaching a low of approximately 19.97% in December 2024 before a modest increase to 22.71% in the first quarter of 2025.

Net Profit Margin

The net profit margin followed a generally downward trajectory across the timeline. Initial values hovered close to 30% in early 2021, with temporary improvements peaking near 31.77% in early 2023. Subsequently, a sharp decline ensued, bottoming near 10.6% by September 2024. A slight recovery was noted thereafter, reaching 18.1% in March 2025.

Return on Equity (ROE)

ROE exhibited extreme volatility, with extraordinarily high values observed between March 2022 and March 2023, peaking at 624.78% in June 2022 and subsequently declining but remaining elevated through early 2023. Following this period, ROE steadily decreased, reaching a low of 52.83% in September 2024, before rebounding to 95.59% in March 2025. The volatility suggests possible one-time factors affecting equity returns during mid-2022.

Return on Assets (ROA)

ROA showed a gradual decline from around 11.5% in early 2021 to below 4.0% by mid-2024. This weakening trend reversed slightly towards the end of the observed period, with ROA improving to 6.64% in March 2025. Despite fluctuations, the overall pattern indicates diminishing asset efficiency over most of the timeline, with tentative signs of recovery emerging in the final quarters.

The analysis of the quarterly financial figures reveals several notable trends in gross profit, product sales, and gross profit margin over the reported periods.

Gross Profit from Product Sales

The gross profit exhibited fluctuations over the quarters, with a peak around the fourth quarter of 2024 at approximately 5604 million US dollars. There was a general pattern of growth interrupted by some quarterly declines, notably in the first quarter of 2024 where gross profit dropped to 3918 million US dollars. Earlier years, such as 2020 and 2021, showed moderate variability with gross profit oscillating mostly between 4000 and 4800 million US dollars. The data suggests cyclical variations possibly linked to seasonal sales or market conditions.

Product Sales

Product sales trended upwards over the observed timeline with some volatility. Starting from a baseline near 5894 million US dollars in the first quarter of 2020, sales experienced steady increases and occasional dips. Noteworthy surges occurred in late 2023 and 2024, with sales reaching as high as 8716 million US dollars in the first quarter of 2025. Despite this general upward trajectory, some quarters such as early 2021 and early 2024 saw temporary declines, reflecting potential external factors affecting demand or supply.

Gross Profit Margin

The gross profit margin showed a declining trend over the periods with data available, from approximately 74.59% in late 2020 down to a low near 58.71% by the third quarter of 2024. Margins stabilized somewhat in the last two quarters recorded, ending around 61.48%. The continuous decrease in margin percentage despite increasing absolute product sales and gross profit could indicate rising costs, pricing pressures, or a shift in product mix affecting profitability.

Overall, while product sales and gross profit in absolute terms generally increased over the years, the profitability margin has experienced compression. This suggests that although revenue is growing, the efficiency or cost-effectiveness of generating profit is under pressure and warrants attention for cost management or pricing strategies.

Operating Income

The operating income presents considerable fluctuations over the analyzed quarters. Starting at a level above 2,300 million US$, it experienced a sharp decline to 828 million US$ during the second quarter of 2021. Subsequently, the operating income recovered, reaching peaks above 2,600 million US$ in some quarters of 2022 and 2023. However, by 2024 and early 2025, there is a notable decline again fluctuating between approximately 1,000 and 2,300 million US$, marking increased volatility and periods of lower profitability.

Product Sales

Product sales have demonstrated a general upward trend with some periods of volatility. The sales initially hovered around 5,900 to 6,300 million US$ until the end of 2021. From 2022 onwards, the sales frequently surpassed 6,500 million US$, even exceeding 8,000 million US$ in some quarters of 2024. This indicates sustained demand growth with occasional dips, particularly in the first quarter of 2025 when sales decreased to about 7,873 million US$.

Operating Profit Margin

The operating profit margin data is available from the fourth quarter of 2020 and shows a declining trend overall. Initially, the margin was relatively high, ranging near 37-39%, but it steadily decreased through subsequent quarters, hitting lows below 20% during 2024. By the first quarter of 2025, the margin slightly recovered to approximately 22.7%. This contraction shows reduced profitability relative to sales, possibly reflecting rising costs or pricing pressures.

Summary and Insights

While product sales have generally increased over the observed quarters, the operating income and profit margin have been more volatile and show a downward trend in profitability over time. The disconnect between growing sales and declining margins suggests challenges in cost management or pricing. The significant drop in operating income during mid-2021 indicates a period of financial stress, followed by some recovery. However, the low margins in 2024 imply persistent pressures on earnings efficiency that merit further investigation and strategic attention.

Net Income (Loss)

The net income exhibits notable fluctuations over the observed periods. The initial quarters of 2020 reflect relatively stable net income levels, with values around 1.8 to 2.0 billion USD. However, a significant drop occurs in the second quarter of 2021, plunging to 464 million USD. Following this low, net income rebounds strongly in the third and fourth quarters of 2021, exceeding 1.8 billion USD consistently. The trend continues with oscillations in 2022 and 2023, demonstrating spikes such as 2.8 billion USD in the first quarter of 2023 and downturns like 767 million USD in the fourth quarter of 2023. In 2024, the volatility persists, including a negative net income of 113 million USD in the first quarter. Towards the latter part of the data, there is a marked recovery again, with values rising to 2.8 billion USD and above. Overall, the data indicates periods of significant volatility with intermittent strong recoveries.

Product Sales

Product sales generally demonstrate an upward trend with some fluctuations. Starting around 5.8 to 6.3 billion USD in 2020, sales maintain stability through the year with slight growth. Sales experience periodic peaks, notably in the fourth quarter of 2023 at over 7.8 billion USD and subsequent quarters maintain this elevated level near 7.8 to 8.7 billion USD. There are dips observed, such as in the first quarter of 2021 and early 2023, but the overall trajectory suggests growth in product sales over the analyzed timeframe. This reflects an increasing revenue base despite the variability observed in net income.

Net Profit Margin

The net profit margin shows a generally positive but variable trend. Data coverage begins from late 2020, with margins fluctuating mostly between 23% and 32%. A peak margin above 31% is noted in early 2023, suggesting periods of highly efficient profitability relative to sales. However, in 2024 the margin declines noticeably, dropping to around 10% to 13% in the first three quarters, indicating reduced profitability in relation to revenues during those periods. Despite these drops, the margins rise slightly towards the end of 2024 and early 2025, indicating some recovery. The variability in margin aligns with the swings in net income, reflective of changing cost or expense dynamics relative to sales.

The financial data reveals several noteworthy trends regarding net income, stockholders’ equity, and return on equity (ROE) over the periods analyzed.

Net Income (Loss):

Net income exhibits considerable volatility throughout the quarters. The period starting in March 2020 shows relatively stable net income, fluctuating between approximately $1.6 billion and $2 billion until early 2021. In mid-2021, net income declines sharply to $464 million but rebounds significantly by the third quarter of 2021.

From 2022 onward, net income again fluctuates substantially, with a notable peak of $2.8 billion in the first quarter of 2023, followed by a drop and another low point of a loss in the first quarter of 2024. The latest data point in March 2025 shows a recovery to $1.73 billion. These fluctuations suggest periods of operational and possibly market challenges interspersed with strong performance quarters.

Stockholders’ Equity:

Stockholders’ equity shows a declining trend from 2020 through 2021, beginning at approximately $9.5 billion and falling to a low of about $6.7 billion by the end of 2021. This decline may reflect either share buybacks, dividend payments exceeding earnings retention, or losses impacting equity.

Equity then exhibits some recovery in 2022 and early 2023, rising again to around $7.7 billion; however, from mid-2023 onwards, the equity fluctuates with a general downward trajectory, reaching roughly $6.2 billion by March 2025. This pattern could indicate ongoing adjustments in the company’s capital structure or residual effects of net income volatility.

Return on Equity (ROE):

ROE data begins in early 2021 and demonstrates extremely high and volatile percentages. Initially, ROE exceeds 70%, with a remarkable spike to over 600% in the June 2022 quarter, followed by a decline but remaining elevated above 50% in most subsequent quarters.

Such high ROE values, particularly the spike, suggest periods where net income is disproportionately high relative to the relatively low equity base, possibly due to the significant equity declines noted above.

The overall trend shows that while ROE remains robust, it is subject to wide oscillations, reflecting the interplay between fluctuating profitability and changes in equity.

In summary, the financials illustrate a company experiencing significant swings in profitability, accompanied by a decreasing and fluctuating equity base. This results in elevated ROE figures, highlighting periods of strong returns on a diminished equity foundation. The data suggests that operational performance and capital management have been inconsistent, necessitating close attention to sustainable profitability and equity stability going forward.

The analysis of the quarterly financial data reveals several notable trends in net income, total assets, and return on assets (ROA) over the period from March 31, 2020, to March 31, 2025.

Net Income (US$ in millions)

Net income shows significant volatility throughout the observed periods. From March 2020 to December 2021, net income generally fluctuates between approximately 460 million and over 2 billion dollars, with some quarters showing steep declines followed by recoveries. The lowest recorded value is 464 million in June 2021, while the highest reaches 2,841 million in March 2023.

Post-2021, the net income experiences large fluctuations, with some sharp declines such as the negative 113 million in March 2024, indicating a loss. However, this is quickly followed by considerable recoveries with a peak of 2,830 million in September 2024. The pattern suggests cyclical performance impacting profitability within some quarters.

Total Assets (US$ in millions)

Total assets demonstrate a relatively steady upward trend over the period, increasing from around 61.7 billion in March 2020 to near 91.3 billion by March 2025. This growth, though with minor short-term fluctuations, indicates consistent asset accumulation or appreciation.

Notable spikes occur between December 2022 and March 2023, where total assets increase sharply from approximately 65.1 billion to 88.7 billion. Following this, assets plateau at around the 90-billion mark, suggesting a phase of consolidation or little further asset growth.

Return on Assets (ROA, %)

ROA data available from March 2021 onwards shows a gradual decline over time. Beginning at 11.54% in March 2021, the ratio steadily decreases to a low of 3.44% in September 2024.

Although there is some recovery towards the end of the period, reaching 6.64% in March 2025, the overall trend indicates diminishing efficiency in generating profit relative to total assets. This may be linked to the volatile net income trend and the steady increase in assets.

Overall, the financial data reflects a company experiencing fluctuating profitability with periods of both strong gains and losses. The steady increase in total assets juxtaposed with declining ROA suggests challenges in translating asset growth into proportional earnings, highlighting potential efficiency or market-related pressures during this timeframe.