Amgen Inc. (NASDAQ:AMGN)

Gross Profit Margin

The gross profit margin demonstrated relative stability between March 2021 and September 2023, fluctuating around the 73-74% range. However, starting from December 2023, a downward trend is apparent with the margin declining sharply from 68.6% to 58.71% by September 2024. A recovery phase appears after this, with margins rising to 62.99% by June 2025.

Operating Profit Margin

The operating profit margin showed a decline from 37.7% in March 2021 to a low of 19.97% in December 2024. Minor improvements occurred thereafter, reaching 24.45% by June 2025. Notably, the margin experienced some volatility, with a peak of 39.31% in December 2022 followed by a consistent downward trajectory starting in early 2023.

Net Profit Margin

The net profit margin followed a general downward trend after peaking at 31.77% in March 2023, decreasing significantly to 10.6% in September 2024. This was followed by some recovery, with the margin gradually improving to 19.75% by June 2025. This pattern suggests periods of profitability challenges followed by gradual improvement.

Return on Equity (ROE)

Return on equity displayed extreme volatility across the periods. It peaked dramatically at 624.78% in June 2021 before declining sharply to 52.83% in September 2024. Post this low, ROE showed signs of recovery, rising to 95.59% by March 2025 before slightly declining to 89.11% in June 2025. Such volatility indicates fluctuations in net income relative to shareholder equity, possibly due to changes in leverage or one-time events.

Return on Assets (ROA)

Return on assets experienced a steady decline from 11.54% in March 2021 to a low of 3.44% in September 2024. Afterward, it slightly improved to 7.53% by June 2025. The decrease over time suggests diminishing efficiency in asset utilization to generate profits, followed by a modest improvement toward the end of the period.

Gross Profit from Product Sales

The gross profit from product sales displayed volatility over the analyzed quarters, with peaks and troughs interspersed throughout the timeline. Initially, from March 2020 to December 2020, gross profit increased steadily from 4,381 million USD to 4,737 million USD. However, in 2021, the figures fluctuated slightly, dropping to 4,102 million USD in March before rising again to 4,553 million USD by December. In 2022, gross profit was somewhat stable around the 4,600 to 4,800 million USD range, peaking at 4,805 million USD in December 2022. The year 2023 showed alternating increases and decreases, peaking notably at 4,870 million USD in June and falling to 4,126 million USD in March. Starting in 2024, gross profit exhibited a more pronounced upward trend, surging from 3,918 million USD in March to 5,760 million USD in June 2025, the highest value observed in the period.

Product Sales

Product sales followed a general upward trajectory over the period analyzed. From March to December 2020, sales rose moderately from 5,894 million USD to 6,334 million USD. Sales declined to 5,592 million USD in March 2021 but quickly rebounded, reaching 6,271 million USD by December 2021. In 2022, product sales showed consistent growth, fluctuating between approximately 5,731 million USD and 6,552 million USD. The year 2023 marked a significant increase, culminating at 7,833 million USD in December, the highest within that year. Throughout 2024 and into mid-2025, product sales continued to escalate sharply, reaching 8,771 million USD by June 2025, indicative of strong market demand or expanded sales capacity.

Gross Profit Margin

Gross profit margin data, available from mid-2020 onwards, varied within a relatively narrow band in 2020 and 2021, generally staying above 70% through most quarters. Starting in early 2022, a downward trend is observable, with margins declining from around 74% in late 2021 to below 60% by late 2024. The margin bottomed out near 58.71% in September 2024, which suggests rising costs or pressure on pricing. A mild recovery appears towards the end of the period, with margins ascending slightly to 62.99% by June 2025; however, this is still substantially lower than the initial levels observed.

Summary Insights

The relationship between gross profit and product sales shows that while product sales have generally increased, the gross profit margin has compressed significantly over time. This indicates that costs relative to sales have increased or pricing pressures have intensified, impacting profitability. Despite this margin contraction, the rising gross profit figures in the latter periods suggest that increased sales volume has somewhat mitigated the impact on absolute profitability. The recent sharp rises in both sales and gross profit in 2024 and 2025 may point to operational improvements or market expansion, but the lower margin warrants attention to cost management or pricing strategy.

The financial data reveals several notable trends in operating income, product sales, and operating profit margin over multiple quarters from March 2020 through June 2025.

Operating Income

Operating income exhibits notable volatility across the analyzed periods. Initially, it remained relatively stable around the 2,300 million US$ mark through 2020, but experienced a sharp decline to 828 million US$ in June 2021. Following this low, operating income generally recovered with fluctuations, reaching highs above 2,600 million US$ in several quarters such as September 2022 and December 2025. However, intermittent dips occurred, particularly in the quarters ending March 2024 and June 2025, indicating sensitivity to varying operational conditions.

Product Sales

Product sales demonstrate a generally increasing trajectory with some seasonal or periodic fluctuations. Sales hovered near 6,000 million US$ in 2020, before dipping slightly in early 2021 but quickly recovering and exceeding prior levels by late 2021. The data show a consistent upward trend starting from late 2022, with product sales reaching approximately 8,700 million US$ by mid-2025. This suggests robust growth in revenue-generating activities over the medium term.

Operating Profit Margin

The operating profit margin presents a weakening trend overall. Beginning at approximately 37.7% in early 2020, margins declined steadily through 2021, falling below 30% from mid-2023 onward. The margin bottomed near 20% during mid to late 2024, followed by a modest recovery to around 24% by mid-2025. This decline in margin despite rising product sales and fluctuating operating income could suggest increasing costs, pricing pressures, or shifts in product mix impacting profitability.

Interrelated Observations

The disparity between growing product sales and declining operating profit margin indicates that revenue growth is accompanied by relatively higher operating expenses or compressions in profitability. The pronounced variability in operating income aligns with the fluctuations in profit margin percentages. Periods of weaker operating income correspond with lower profit margins, confirming the sensitivity of earnings to changes in cost structures or external factors.

Overall, the financial data suggest a company experiencing solid sales growth but with challenges in maintaining stable operating income and profitability margins. Continued monitoring of cost management and operational efficiency would be critical to sustaining financial health given the observed trends.

The financial data reveals varying performance trends over the analyzed quarters. Net income exhibits significant volatility, dropping sharply in several periods and then recovering, indicating fluctuations in profitability. Product sales generally show a pattern of growth, with incremental increases over time despite some intermittent dips, suggesting a stable but somewhat fluctuating demand or market conditions. The net profit margin percentages fluctuate notably, reflecting changes in cost management, pricing strategies, or operational efficiency that impact overall profitability.

Net Income (US$ in millions)

The net income figures show marked inconsistency across the periods. Initially, the income ranged between approximately 1600 to 2000 million but experienced severe declines at times, including a negative value in one quarter. This pattern indicates periods of financial strain or extraordinary expenses. Recovery phases are identifiable where net income returns to higher levels, demonstrating resilience or successful corrective measures within the company.

Product Sales (US$ in millions)

Product sales demonstrate an upward trend over the long term, increasing from the high 5000s to values exceeding 8700 million. Although sales decline in some quarters, the overall trajectory is positive, indicating effective sales strategies or product demand growth. Seasonal or market-driven variations might explain the dips, but the general increase suggests strengthening revenue streams.

Net Profit Margin (%)

Profit margin percentages reveal considerable fluctuations. Early periods register margins around 23-30%, followed by a decline to low teens and occasionally just above 10%. Margins recover partially in some quarters, suggesting variability in cost control or pricing impact on profitability. The margins' volatility likely correlates with the net income swings and reflects underlying operational challenges or market conditions affecting profitability ratios.

Net Income (Loss)

The net income shows significant volatility over the observed periods. Initially, it remained relatively stable around 1800 to 2000 million US dollars in 2020, but experienced a sharp decline to 464 million in Q2 2021. Following this trough, net income recovered sharply, exceeding 2800 million US dollars in Q1 2023. Afterward, the figures became more variable, with a notable loss of 113 million US dollars in Q1 2024, then sharply rebounding to 2830 million in Q3 2024, before declining again to 1432 million by Q2 2025. This pattern suggests inconsistent profitability possibly influenced by external or operational factors impacting quarterly performance.

Stockholders’ Equity

Stockholders’ equity experienced a general downward trend from early 2020 through late 2021. The values dropped from a peak of approximately 11,000 million US dollars to a low of around 6700 million by Q4 2021. Starting 2022, there was an improvement in equity interest, with a steady increase reaching about 7656 million in Q3 2023. However, from late 2023 through mid-2025, equity remained volatile, fluctuating between 5022 million and 7428 million US dollars, with no clear sustained growth or decline trend. This could indicate changing capital structure or impacts from net results and dividend policies.

Return on Equity (ROE)

Return on equity displayed extreme fluctuations that mirror the variability in net income and equity values. The ROE rose sharply from around 68% in late 2020 to an anomalous peak exceeding 600% in early 2022, which likely reflects the combination of low equity base and fluctuating income. Following this peak, ROE values settled into a lower but still elevated range typically between roughly 50% and 180%, with occasional spikes reaching above 100%. In the most recent quarters, ROE maintains high levels above 70% into mid-2025, indicating periods of high profitability relative to equity, but the extreme variability suggests underlying financial instability or nonrecurring items influencing returns.

The analysis of the data reveals several notable trends in the company's financial performance over the reported periods.

Net Income (Loss)

The net income values exhibit considerable volatility across quarters. Starting at relatively high levels around 1,800 million USD in early 2020, there is a decline in mid-2021 with a significant dip to 464 million USD, followed by a recovery and fluctuation around the 1,300–2,100 million USD range until late 2022. From early 2023, net income shows sharp oscillations, peaking at 2,841 million USD in the first quarter but also experiencing negative values such as -113 million USD by early 2024. The figures towards mid-2025 stabilize somewhat in the range of 1,400 to 1,700 million USD, though still below the peaks seen earlier in the period.

Total Assets

Total assets show an overall growth trend from approximately 61,669 million USD at the start of 2020 to a peak above 97,000 million USD near the end of 2023. After this peak, a gradual decrease appears, with assets declining to around 87,897 million USD by mid-2025. This suggests an expansion phase followed by a period of consolidation or asset reduction in the most recent periods.

Return on Assets (ROA)

Return on Assets data commences from late 2020, indicating levels above 9% initially, with a peak of 11.54% and generally maintaining above 8% through 2021 and early 2022. However, starting from late 2022 and into 2023 and 2024, ROA declines noticeably, reaching lows below 5%, with the lowest point near 3.44%. Late data shows some recovery toward approximately 6–7.5% by mid-2025. This trend reflects a period of decreasing efficiency in asset utilization to generate profits, followed by a modest improvement in the latest quarters.

In summary, the company experienced substantial fluctuations in net income with periods of both growth and contraction. Asset growth was strong up to late 2023 but reversed thereafter. The profitability metric ROA deteriorated significantly during 2023 and early 2024 but showed signs of recovery by mid-2025. These patterns suggest underlying operational challenges impacting profitability despite previously expanding asset base and intermittent high earnings.