Amgen Inc. (NASDAQ:AMGN)

Gross Profit Margin

The gross profit margin remained relatively stable around 74% from early 2021 through the end of 2022, indicating consistent profitability at the production level. However, beginning in early 2023, a downward trend became evident, with the margin declining sharply to approximately 58.7% by the third quarter of 2024. A modest recovery is observed thereafter, with the margin rising back to nearly 65% by the third quarter of 2025. This pattern suggests increasing cost pressures or pricing challenges impacting gross profitability, partially offset towards the end of the observed period.

Operating Profit Margin

The operating profit margin fluctuated during the initial three years, ranging between approximately 30% and 39%, peaking mid-2022. From 2023 onward, this margin experienced a clear decline, dropping to a low near 20% by late 2024. Following this downturn, a moderate uptrend is noted, with the margin improving to about 25% by the third quarter of 2025. The variation in operating margins reflects changing operating efficiency and potentially higher operating expenses relative to revenue in the later periods.

Net Profit Margin

Net profit margin exhibited fluctuations throughout the dataset. Initially, margins hovered in the mid-20s to low 30s percentage-wise, with some quarterly variability. However, starting in early 2023, the margin decreased substantially, reaching a nadir near 10.6% in mid-2024. Subsequently, a recovery phase is apparent, with net margins climbing back to around 20% by the third quarter of 2025. This trajectory may reflect shifts in cost structures, tax impacts, or one-time items influencing net profitability.

Return on Equity (ROE)

Return on equity presented a highly volatile pattern. Despite an initial range between 68% and 88% in 2021, extraordinary values were recorded in 2022, with ROE spiking dramatically to 624.78% in the first quarter and maintaining elevated levels through the year. Such elevated figures suggest significant leverage effects, extraordinary gains, or impairments affecting equity base. From 2023 onward, ROE demonstrated a declining trend, stabilizing between approximately 50% and 95%, with a modest decline noted toward the latter quarters of 2025. The considerable volatility suggests variable equity base and earnings influence through the periods.

Return on Assets (ROA)

Return on assets showed a more consistent but generally declining trend over the observed timeframe. Starting at about 11.3% in early 2021, ROA remained relatively stable near 10% through 2022 before declining sharply starting in 2023 to a low near 3.4% mid-2024. A gradual recovery took place afterwards, with ROA reaching approximately 7.8% by the third quarter of 2025. This pattern indicates fluctuating asset utilization efficiency, likely affected by underlying earnings changes and asset base adjustments.

Gross Profit from Product Sales

The gross profit from product sales fluctuates over the reported quarters. It starts at 4,102 million USD in the first quarter of 2021 and generally increases with some variability throughout the periods. Notably, a significant rise occurs towards the end of 2024 and into 2025, peaking at 6,055 million USD in the third quarter of 2025. This suggests an overall upward trend in gross profit despite intermittent declines.

Product Sales

Product sales show a steady upward trajectory over the examined timeframe. Beginning at 5,592 million USD in the first quarter of 2021, sales gradually increase with occasional minor decreases but continue to ascend overall. The highest recorded sales occur in the third quarter of 2025 at 9,137 million USD. This consistent growth in sales volume likely contributes to the corresponding increases in gross profit.

Gross Profit Margin

The gross profit margin exhibits a declining trend over the period. Starting at approximately 74.37% in early 2021, it remains relatively stable for the first several quarters. However, from late 2022 onward, a noticeable decline is apparent, dropping to a low of 58.71% in the third quarter of 2024. Following this low point, the margin shows a modest recovery to about 64.71% by the third quarter of 2025. This pattern indicates that despite rising sales and gross profits, the relative profitability per dollar of sales has decreased, suggesting increased cost pressures or changes in product mix affecting margins.

Summary of Relationship and Trends

The data reveals that although product sales and gross profit from those sales increase over time, the gross profit margin decreases, particularly after 2022. This divergence suggests that while volume and revenue growth are strong, cost of sales or operational efficiency may have deteriorated or been impacted by external factors, reducing the relative profitability. The partial rebound in gross margin towards 2025 may indicate some improvement in cost management or pricing strategies.

The financial performance over the examined quarters reveals notable fluctuations in operating income, product sales, and operating profit margin.

Operating Income

Operating income displayed variability throughout the periods, experiencing peaks and troughs rather than a steady trend. Initially, there is a decline from 2,129 million USD in March 2021 to 828 million USD by June 2021, followed by increases and subsequent declines in the following quarters. Notably, a strong increase occurred in September 2021 (2,378 million USD), then fluctuations continued. During 2024 and 2025, the results alternate between lower and higher values, with a notable low of 991 million USD in March 2024 and a high of 2,656 million USD in September 2025. This suggests intermittent challenges and recoveries in operating income across the reporting periods.

Product Sales

Product sales generally show a positive upward trajectory over the analyzed timeframe. Starting from 5,592 million USD in March 2021, sales generally increase with some periodic dips but overall an upward trend is identified, reaching 9,137 million USD by the end of the period in September 2025. The increase is marked especially from 2023 onward, where several quarters exceed 8,000 million USD in product sales, highlighting growth in market demand or pricing strategies despite fluctuations in operating income.

Operating Profit Margin

The operating profit margin percentage has exhibited a declining trend over time. Initially, the margin was relatively high, around 37% in early 2021, peaking at 39.31% in September 2022. However, after this peak, a clear downward shift is evident, with margins decreasing to below 20% in mid-2024, indicating increasing costs or margin pressure. Partial recovery is visible toward the end of the period, stabilizing around 24% by late 2025. This decline in margins suggests challenges in cost control or pricing pressures impacting profitability despite higher sales volumes.

In summary, product sales show consistent growth over the quarters, indicating expanding revenue. However, operating income and profit margins demonstrate considerable volatility and downward pressure, possibly reflecting increased costs or operational inefficiencies. The divergence between rising sales and shrinking margins may warrant further investigation into expense management and pricing strategy to enhance profitability.

Net Income (Loss)

The net income exhibits notable volatility over the examined periods. Initially, net income declines steeply from 1,646 million USD in the first quarter of 2021 to 464 million USD in the second quarter of the same year, followed by a significant rebound to 1,884 million USD in the third quarter. This pattern of fluctuations continues with peaks and troughs evident throughout the timeline. A marked decline occurs in the first quarter of 2024, registering a loss of 113 million USD, which is an anomaly compared to the predominantly positive results. Subsequent quarters show recovery and growth; notably, the first quarter of 2025 records a peak net income of 3,216 million USD, indicating a strong upward trend in profitability towards the end of the period.

Product Sales

Product sales show an overall positive growth trajectory with periodic fluctuations. Sales start at 5,592 million USD in the first quarter of 2021 and generally increase over the years, reaching a peak of 9,137 million USD in the first quarter of 2025. Several quarters demonstrate slight declines or plateaus, notably between the first and second quarters of 2023, where sales dipped from 7,833 to 7,118 million USD, and again in early 2025. Despite these short-term variations, the long-term trend points to a steady expansion in product sales volume and revenue.

Net Profit Margin

The net profit margin reflects the net income trend with corresponding volatility. Margins begin around 29.6% in early 2021, decrease to the low twenties through most of that year, and then improve to a peak of approximately 31.77% in the first quarter of 2023. However, there is a notable contraction in profit margins during 2024, dropping to a low of 10.6% in the second quarter, coinciding with the net loss in early 2024. Margins subsequently recover to reach about 20.31% by the first quarter of 2025, indicating enhanced profitability and operational efficiency by the conclusion of the observed period.

Overall Insights

The data illustrates a cyclical pattern in financial performance characterized by periodic dips and recoveries. Despite episodes of sharp declines, including a temporary net loss and compressed profit margins around early 2024, the company demonstrates resilience and recovery capability. The upward movement in product sales and net income towards 2025 suggests effective growth and potentially improved market conditions, cost management, or product mix changes driving profitability. The profit margin trend supports this view, indicating enhanced earnings quality and control over expenses as profitability margins rebound after mid-period challenges.

Net Income (Loss) Analysis

The net income exhibits notable volatility across the observed quarters. Starting at 1,646 million USD in the first quarter of 2021, it sharply declines to 464 million USD in the following quarter. Subsequently, the net income recovers to a high of 2,143 million USD by the third quarter of 2022. This is followed by fluctuations with a significant drop to a negative 113 million USD in the first quarter of 2024, indicating a loss during that period. Afterwards, the net income rebounds with a pronounced peak of 3,216 million USD by the third quarter of 2025, representing the highest value in the timeframe. The pattern suggests periods of both strong profitability and setbacks, with an overall tendency towards recovery after dips.

Stockholders’ Equity Analysis

Stockholders’ equity shows a general decreasing trend during 2021, plummeting from 9,334 million USD at the beginning of the year to 6,700 million USD at year-end. This decline is followed by a substantial drop to 916 million USD in the first quarter of 2022, indicating a considerable reduction in equity. However, from the second quarter of 2022 onwards, equity consistently increases, reaching 9,619 million USD by the third quarter of 2025. This recovery suggests reinforcements in the company’s capital base or retained earnings over the latter part of the period, as the equity exceeds the initial value at the start of 2021.

Return on Equity (ROE) Analysis

The Return on Equity demonstrates extreme variability in percentage terms. It begins at a high of 75.91% in the first quarter of 2021 and peaks dramatically at 624.78% in the first quarter of 2022, coinciding with the period of the lowest equity value. Despite this, ROE trends downward after the peak, stabilizing between approximately 50% and 150% in subsequent periods, with occasional increases such as 95.59% in the first quarter of 2025. These elevated ROE levels may reflect the impact of reduced equity rather than proportional increases in net income, highlighting elevated profitability ratios possibly driven by a smaller equity base rather than pure operational efficiency improvements.

Overall Insights

The data reveals a company experiencing significant fluctuations in profit generation and capital base over the period. Periods of diminished equity correlate with spikes in ROE, suggesting structural financial shifts possibly related to capital restructuring or exceptional items. Despite volatility, upward trajectories in net income and equity in the later periods indicate recovery and strengthening financial position. Caution is warranted in interpreting ROE given its sensitivity to equity variations, and a deeper review of underlying causes for equity changes is recommended to fully understand profitability dynamics.

Net Income (Loss)

The net income exhibits considerable volatility across the reported quarters. Starting at 1,646 million US dollars in March 2021, there is a sharp decline to 464 million in June 2021, followed by recovery and peaks such as 2,143 million in September 2022 and 2,841 million in March 2023. Post-March 2023, a notable decline occurs, with some quarters showing a substantial drop, including a loss of 113 million in December 2023. However, the net income rebounds sharply in several subsequent quarters, reaching the highest point in September 2025 at 3,216 million. This pattern indicates intermittent fluctuations in profitability, with occasional strong recoveries after downturns.

Total Assets

Total assets range between approximately 59,000 and 97,000 million US dollars over the period. There is an initial decrease from March 2021 to June 2021, followed by a gradual upward trend to a peak of 97,154 million in December 2023. After this peak, total assets slightly decline and stabilize around a range of 87,897 to 91,839 million from March 2024 through September 2025. This suggests a period of asset growth culminating at the end of 2023, with a slight contraction and stabilization thereafter.

Return on Assets (ROA)

ROA demonstrates a downward trend over the course of the data. It starts relatively high at 11.33% in March 2021, then declines moderately and fluctuates around 10% through 2022. Notable reductions occur from December 2023 onward, with the lowest values recorded in the first half of 2024 (4.05% and 3.44%). There is a slight recovery in ROA values from late 2024 into 2025, rising back to around 7.7% by September 2025. Overall, the return on assets declines significantly from early 2021 levels indicating reduced efficiency or profitability relative to asset base during this interval, albeit with some recovery in the later stages.

Overall Insights

The financial data portrays a company experiencing pronounced fluctuations in profitability, as evidenced by the volatile net income figures. Despite these fluctuations, total assets generally increased until late 2023, reflecting asset accumulation or investment, followed by a period of relative stability with minor decreases. The declining trend in return on assets over the observed period suggests diminishing returns on the company’s asset base, which may reflect operational challenges or changing market conditions. The partial recovery in both net income and ROA in the later periods could indicate some return to improved operational performance or strategic adjustments. The patterns highlight the importance of monitoring profitability relative to asset utilization to sustain financial health.