Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Amgen Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The short-term operating activity ratios exhibit varied trends over the observed period. Generally, a period of relative stability from March 2022 through September 2023 is followed by more pronounced fluctuations, particularly in the latter half of 2023 and into 2025. Several ratios demonstrate a notable shift in performance around the December 2023 timeframe, warranting further investigation.
- Inventory Management
- Inventory turnover generally declined from 1.48 in March 2022 to a low of 0.89 in December 2022, before recovering and increasing to 1.93 by December 2025. This suggests an initial slowdown in the rate at which inventory is sold and replenished, followed by a significant improvement in inventory efficiency. The corresponding average inventory processing period increased from 247 days to 411 days during the same period, then decreased to 189 days, mirroring the inventory turnover trend. This indicates a lengthening of the time inventory is held, followed by a substantial reduction.
- Receivables Management
- Receivables turnover decreased from 4.81 in March 2022 to 3.67 in December 2025, indicating a slowing in the rate at which receivables are collected. The average receivable collection period increased from 76 days to 99 days over the same timeframe, confirming a lengthening in the time taken to collect payments. A slight dip in receivables turnover is observed in March 2024, followed by a rebound, but the overall trend remains downward.
- Payables Management
- Payables turnover shows more volatility. It increased from 4.65 in March 2022 to 5.67 in June 2023, then fluctuated, reaching 6.74 in December 2024 and 5.09 in December 2025. This suggests varying levels of efficiency in managing payments to suppliers. The average payables payment period decreased from 78 days to 60 days, then increased to 89 days before decreasing again to 72 days, reflecting the changes in payables turnover.
- Overall Efficiency – Working Capital & Cycles
- Working capital turnover demonstrates a significant decline initially, reaching a low of 0.82 in March 2023, before increasing substantially to 9.85 by December 2025. This indicates a dramatic improvement in the efficiency with which working capital is utilized. The operating cycle lengthened from 323 days to 510 days, then decreased to 288 days, reflecting the combined effects of changes in inventory and receivables. The cash conversion cycle followed a similar pattern, increasing to 441 days and then decreasing to 216 days. The average payables payment period appears to partially offset the lengthening of the operating cycle in some periods.
The substantial changes observed in the latter part of the period, particularly from December 2023 onwards, suggest potential shifts in the company’s operational strategies, credit policies, or supply chain management. The improvement in working capital turnover and the shortening of the cash conversion cycle in the most recent periods are positive indicators, but the underlying drivers of these changes should be investigated further.
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Turnover Ratios
Average No. Days
Inventory Turnover
Amgen Inc., inventory turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cost of sales | 2,976) | 3,082) | 3,011) | 2,968) | 3,112) | 3,310) | 3,236) | 3,200) | 3,112) | 1,806) | 1,813) | 1,720) | 1,747) | 1,588) | 1,510) | 1,561) | |||||
| Inventories | 6,225) | 6,346) | 6,583) | 6,729) | 6,998) | 7,362) | 7,995) | 8,724) | 9,518) | 5,026) | 4,978) | 5,011) | 4,930) | 4,757) | 4,554) | 4,411) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Inventory turnover1 | 1.93 | 1.92 | 1.88 | 1.88 | 1.84 | 1.75 | 1.42 | 1.14 | 0.89 | 1.41 | 1.38 | 1.31 | 1.30 | 1.34 | 1.40 | 1.48 | |||||
| Benchmarks | |||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 3.68 | 3.65 | 3.42 | 3.71 | 4.04 | 4.09 | 4.86 | 4.83 | 4.98 | 4.74 | 4.30 | 4.53 | 4.87 | 5.54 | 4.99 | 4.96 | |||||
| Bristol-Myers Squibb Co. | 5.18 | 5.31 | 5.18 | 5.28 | 5.46 | 3.57 | 3.72 | 3.70 | 4.02 | 4.33 | 4.39 | 3.93 | 4.33 | 4.77 | 4.59 | 4.55 | |||||
| Danaher Corp. | 4.04 | 3.67 | 3.60 | 3.79 | 4.15 | 3.60 | 3.59 | 3.73 | 3.80 | 3.53 | 3.58 | 3.50 | 4.03 | 3.80 | 3.71 | 3.87 | |||||
| Eli Lilly & Co. | 0.80 | 0.83 | 0.84 | 0.96 | 1.11 | 1.05 | 1.16 | 1.17 | 1.23 | 1.40 | 1.37 | 1.36 | 1.54 | 1.86 | 1.79 | 1.93 | |||||
| Gilead Sciences Inc. | 3.51 | 3.47 | 3.40 | 3.55 | 3.66 | 3.62 | 3.33 | 3.59 | 3.64 | 3.49 | 3.45 | 3.57 | 3.75 | 4.71 | 4.50 | 4.50 | |||||
| Johnson & Johnson | 2.13 | 2.08 | 2.17 | 2.24 | 2.21 | 2.15 | 2.20 | 2.32 | 2.37 | 2.46 | 2.23 | 2.36 | 2.49 | 2.68 | 2.69 | 2.77 | |||||
| Merck & Co. Inc. | 2.46 | 2.27 | 2.25 | 2.43 | 2.49 | 2.45 | 2.39 | 2.42 | 2.54 | 2.63 | 2.66 | 2.72 | 2.95 | 3.10 | 3.06 | 2.74 | |||||
| Pfizer Inc. | 1.51 | 1.46 | 1.52 | 1.60 | 1.65 | 1.66 | 2.05 | 2.15 | 2.45 | 2.65 | 2.31 | 3.07 | 3.82 | 3.62 | 3.66 | 3.67 | |||||
| Regeneron Pharmaceuticals Inc. | 0.66 | 0.64 | 0.64 | 0.63 | 0.64 | 0.64 | 0.65 | 0.66 | 0.70 | 0.72 | 0.69 | 0.67 | 0.65 | 0.83 | 0.96 | 1.27 | |||||
| Thermo Fisher Scientific Inc. | 4.85 | 4.47 | 4.57 | 4.82 | 5.06 | 4.62 | 4.83 | 4.93 | 5.06 | 4.83 | 4.64 | 4.62 | 4.60 | 4.29 | 4.03 | 3.87 | |||||
| Vertex Pharmaceuticals Inc. | 0.98 | 0.99 | 1.06 | 1.14 | 1.27 | 1.37 | 1.53 | 1.65 | 1.71 | 1.71 | 1.90 | 2.06 | 2.35 | 2.69 | 2.70 | 2.83 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Inventory turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Inventories
= (2,976 + 3,082 + 3,011 + 2,968)
÷ 6,225 = 1.93
2 Click competitor name to see calculations.
The inventory turnover ratio exhibits fluctuations over the observed period, generally trending upwards with notable variations. Initial values indicate a moderate rate of inventory conversion, followed by a period of decline, and then a subsequent increase towards the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The inventory turnover ratio begins at 1.48 and demonstrates a consistent, albeit gradual, downward trend, decreasing to 1.30 by the end of 2022. This suggests a slowing in the rate at which inventory is sold and replenished during this period. Cost of sales remained relatively stable, while inventories increased, contributing to the decline in turnover.
- Stabilization and Initial Increase (Mar 31, 2023 – Sep 30, 2023)
- From March 2023 through September 2023, the ratio stabilizes and begins to recover, rising from 1.31 to 1.41. This coincides with a slight decrease in inventory levels and a moderate increase in cost of sales. The improvement suggests a more efficient inventory management process during this timeframe.
- Significant Fluctuation (Dec 31, 2023 – Mar 31, 2024)
- A substantial decrease is observed in the ratio at December 31, 2023, falling to 0.89. This is primarily attributable to a significant increase in inventory holdings, coupled with a corresponding increase in cost of sales. The ratio then recovers to 1.14 by March 31, 2024, indicating a partial correction, but remains below the levels seen in the earlier part of 2023.
- Consistent Improvement (Jun 30, 2024 – Dec 31, 2025)
- The period from June 2024 through December 2025 demonstrates a consistent upward trend in the inventory turnover ratio. It increases from 1.42 to 1.93. This improvement is driven by a combination of decreasing inventory levels and relatively stable cost of sales. The ratio reaches its highest point at the end of the analyzed period, suggesting improved inventory management and increased sales efficiency.
Overall, the inventory turnover ratio demonstrates a cyclical pattern with a clear upward trend in the latter portion of the period. The significant dip in late 2023 warrants further investigation to understand the underlying causes of the inventory build-up. The subsequent recovery and continued improvement suggest successful strategies were implemented to optimize inventory levels and enhance sales velocity.
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Receivables Turnover
Amgen Inc., receivables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Product sales | 9,367) | 9,137) | 8,771) | 7,873) | 8,716) | 8,151) | 8,041) | 7,118) | 7,833) | 6,548) | 6,683) | 5,846) | 6,552) | 6,237) | 6,281) | 5,731) | |||||
| Trade receivables, net | 9,570) | 8,490) | 8,701) | 8,132) | 6,782) | 7,317) | 6,934) | 6,776) | 7,268) | 6,145) | 5,830) | 5,736) | 5,563) | 5,326) | 5,327) | 5,077) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | 3.67 | 4.06 | 3.85 | 4.03 | 4.72 | 4.26 | 4.26 | 4.16 | 3.70 | 4.17 | 4.34 | 4.34 | 4.46 | 4.60 | 4.62 | 4.81 | |||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 4.86 | 4.67 | 4.62 | 4.60 | 5.16 | 4.84 | 4.69 | 4.55 | 4.87 | 4.83 | 4.88 | 4.95 | 5.16 | 5.38 | 5.10 | 5.29 | |||||
| Danaher Corp. | 6.28 | 6.46 | 6.74 | 6.79 | 6.75 | 6.77 | 7.15 | 7.02 | 6.09 | 6.15 | 6.64 | 6.89 | 6.40 | 7.09 | 6.81 | 6.87 | |||||
| Eli Lilly & Co. | 3.67 | 3.69 | 3.76 | 4.07 | 4.09 | 3.97 | 3.53 | 4.56 | 3.75 | 3.93 | 3.93 | 3.68 | 4.14 | 4.35 | 4.57 | 4.64 | |||||
| Gilead Sciences Inc. | 5.89 | 5.60 | 6.01 | 6.51 | 6.47 | 6.14 | 5.92 | 5.84 | 5.78 | 5.68 | 6.43 | 6.43 | 5.65 | 6.16 | 6.60 | 7.18 | |||||
| Johnson & Johnson | 5.48 | 5.23 | 5.08 | 5.58 | 5.98 | 5.42 | 5.48 | 5.73 | 5.73 | 5.91 | 5.36 | 5.65 | 5.88 | 6.04 | 5.92 | 6.08 | |||||
| Merck & Co. Inc. | 5.52 | 5.30 | 5.37 | 5.92 | 6.24 | 5.55 | 5.37 | 5.40 | 5.81 | 5.71 | 5.29 | 5.56 | 6.27 | 6.22 | 5.93 | 5.49 | |||||
| Pfizer Inc. | 5.27 | 4.40 | 5.29 | 5.27 | 5.55 | 4.18 | 4.93 | 5.09 | 5.33 | 6.25 | 7.66 | 7.57 | 9.16 | 6.21 | 6.68 | 6.99 | |||||
| Regeneron Pharmaceuticals Inc. | 2.50 | 2.51 | 2.53 | 2.53 | 2.29 | 2.27 | 2.36 | 2.51 | 2.31 | 2.35 | 2.47 | 2.42 | 2.28 | 2.47 | 2.76 | 3.41 | |||||
| Thermo Fisher Scientific Inc. | 5.01 | 4.91 | 5.03 | 5.07 | 5.23 | 5.13 | 5.33 | 5.36 | 5.21 | 5.19 | 5.43 | 5.53 | 5.53 | 5.76 | 5.53 | 5.21 | |||||
| Vertex Pharmaceuticals Inc. | 5.85 | 6.02 | 6.03 | 6.15 | 6.85 | 6.07 | 6.24 | 5.68 | 6.31 | 6.27 | 6.11 | 5.95 | 6.19 | 6.28 | 6.26 | 6.15 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Receivables turnover
= (Product salesQ4 2025
+ Product salesQ3 2025
+ Product salesQ2 2025
+ Product salesQ1 2025)
÷ Trade receivables, net
= (9,367 + 9,137 + 8,771 + 7,873)
÷ 9,570 = 3.67
2 Click competitor name to see calculations.
The receivables turnover ratio experienced fluctuations throughout the observed period, spanning from March 31, 2022, to December 31, 2025. An initial decline is noted, followed by periods of relative stability and subsequent shifts. Overall, the ratio demonstrates a degree of volatility, potentially indicating changes in the company’s credit policies, collection efficiency, or the composition of its customer base.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- The receivables turnover ratio decreased from 4.81 in March 2022 to 4.46 by the end of December 2022. This suggests a lengthening of the average collection period during this timeframe. The decrease could be attributed to a variety of factors, including extended credit terms offered to customers, a shift towards larger sales to customers with longer payment cycles, or a potential slowdown in collections.
- Stabilization and Subsequent Dip (Jan 1, 2023 – Sep 30, 2023)
- From March 2023 through September 2023, the ratio remained relatively stable, fluctuating between 4.17 and 4.34. However, a more pronounced decrease was observed in December 2023, with the ratio falling to 3.70. This represents the lowest point in the observed period and warrants further investigation into potential causes, such as increased credit risk or difficulties in collecting outstanding receivables.
- Recovery and Subsequent Decline (Oct 1, 2023 – Dec 31, 2025)
- The ratio experienced a recovery in the first quarter of 2024, rising to 4.16 and 4.26 in subsequent quarters. A peak was reached in December 2024 at 4.72, indicating improved collection efficiency. However, this improvement was not sustained, as the ratio decreased to 3.67 by December 2025, marking another low point. This final decline suggests a re-emergence of the factors that initially caused the ratio to decrease in 2022 and 2023.
- Correlation with Product Sales
- While not a direct one-to-one relationship, the fluctuations in receivables turnover appear to be partially correlated with changes in product sales. For example, the significant increase in product sales in December 2023 did not translate into a corresponding increase in the receivables turnover ratio, suggesting that the increase in sales may have been accompanied by a lengthening of the collection period. Similarly, increases in product sales in the latter half of 2024 coincided with an increase in the ratio.
In conclusion, the receivables turnover ratio demonstrates a pattern of decline, stabilization, and recovery, followed by a final decline. These fluctuations suggest potential inconsistencies in the company’s credit and collection practices, or external factors impacting the timing of payments. Continued monitoring of this ratio, alongside related metrics, is recommended to identify the underlying causes of these trends and to assess the effectiveness of any corrective actions taken.
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Payables Turnover
Amgen Inc., payables turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cost of sales | 2,976) | 3,082) | 3,011) | 2,968) | 3,112) | 3,310) | 3,236) | 3,200) | 3,112) | 1,806) | 1,813) | 1,720) | 1,747) | 1,588) | 1,510) | 1,561) | |||||
| Accounts payable | 2,367) | 2,838) | 3,010) | 2,406) | 1,908) | 2,147) | 2,267) | 1,628) | 1,590) | 1,358) | 1,212) | 1,320) | 1,572) | 1,204) | 1,256) | 1,403) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | 5.09 | 4.29 | 4.12 | 5.25 | 6.74 | 5.99 | 5.01 | 6.10 | 5.32 | 5.22 | 5.67 | 4.97 | 4.08 | 5.30 | 5.09 | 4.65 | |||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | 3.90 | 3.42 | 2.61 | 3.52 | 3.88 | 3.43 | 3.05 | 3.12 | 3.28 | 3.75 | 3.38 | 3.20 | 3.33 | 3.82 | 3.41 | 3.25 | |||||
| Danaher Corp. | 5.45 | 5.78 | 5.62 | 5.57 | 5.52 | 6.04 | 5.84 | 5.88 | 5.58 | 5.63 | 5.82 | 5.68 | 5.45 | 5.61 | 5.00 | 5.04 | |||||
| Eli Lilly & Co. | 2.05 | 2.37 | 2.27 | 2.61 | 2.61 | 2.70 | 2.56 | 2.88 | 2.73 | 2.81 | 2.65 | 3.07 | 3.43 | 4.24 | 4.21 | 5.24 | |||||
| Gilead Sciences Inc. | 8.72 | 7.66 | 10.65 | 8.47 | 7.50 | 7.49 | 12.57 | 10.69 | 11.81 | 9.90 | 9.06 | 8.99 | 6.25 | 11.22 | 11.89 | 11.43 | |||||
| Johnson & Johnson | 2.52 | 3.06 | 3.07 | 2.97 | 2.66 | 3.03 | 3.03 | 3.23 | 2.76 | 3.29 | 2.75 | 3.05 | 2.66 | 3.08 | 3.15 | 3.26 | |||||
| Merck & Co. Inc. | 3.72 | 3.53 | 3.82 | 3.98 | 3.72 | 4.26 | 4.39 | 4.48 | 4.11 | 4.59 | 4.58 | 4.34 | 4.08 | 5.16 | 4.86 | 4.25 | |||||
| Pfizer Inc. | 3.07 | 3.32 | 3.44 | 3.30 | 3.17 | 3.67 | 4.60 | 4.19 | 3.72 | 5.07 | 3.92 | 4.78 | 5.04 | 5.49 | 6.17 | 6.66 | |||||
| Regeneron Pharmaceuticals Inc. | 2.24 | 2.30 | 2.83 | 2.84 | 2.50 | 3.87 | 3.32 | 2.67 | 2.99 | 3.43 | 3.14 | 2.69 | 2.65 | 3.74 | 4.00 | 5.39 | |||||
| Thermo Fisher Scientific Inc. | 7.27 | 8.23 | 8.53 | 8.25 | 8.18 | 9.63 | 9.85 | 9.91 | 8.97 | 10.41 | 10.82 | 9.35 | 7.67 | 9.93 | 8.84 | 7.96 | |||||
| Vertex Pharmaceuticals Inc. | 3.58 | 3.83 | 3.59 | 3.49 | 3.71 | 3.73 | 4.27 | 3.81 | 3.46 | 3.13 | 3.16 | 3.41 | 3.55 | 8.23 | 5.01 | 5.52 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Payables turnover
= (Cost of salesQ4 2025
+ Cost of salesQ3 2025
+ Cost of salesQ2 2025
+ Cost of salesQ1 2025)
÷ Accounts payable
= (2,976 + 3,082 + 3,011 + 2,968)
÷ 2,367 = 5.09
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits fluctuations over the observed period, generally indicating changes in the efficiency with which the company manages its short-term liabilities relative to its cost of sales. An initial period of increasing turnover is followed by a decline, then a subsequent rise, and finally a leveling off with some volatility.
- Initial Trend (Mar 31, 2022 – Sep 30, 2022)
- The payables turnover ratio demonstrates an increasing trend, rising from 4.65 to 5.30. This suggests an improvement in the speed at which the company pays its suppliers during this period, potentially due to proactive cash management or negotiated payment terms. The cost of sales remained relatively stable during this timeframe, contributing to the clearer interpretation of the turnover increase.
- Subsequent Decline (Sep 30, 2022 – Dec 31, 2022)
- A decrease in the payables turnover ratio is observed, falling to 4.08 by December 31, 2022. This coincides with a significant increase in cost of sales, suggesting that the company may have taken longer to pay its suppliers, or that increased purchasing activity outpaced payment processing.
- Recovery and Peak (Mar 31, 2023 – Sep 30, 2023)
- The ratio recovers and peaks at 5.67 in June 30, 2023, indicating a renewed efficiency in managing accounts payable. This improvement occurs alongside a gradual increase in cost of sales. The subsequent decrease to 5.22 in September 30, 2023, suggests a slight moderation in this efficiency.
- Volatility and Recent Performance (Dec 31, 2023 – Dec 31, 2025)
- From December 31, 2023, through December 31, 2025, the payables turnover ratio exhibits more volatility. It rises to a high of 6.74 in March 31, 2024, then declines to 4.12 in June 30, 2025, before recovering to 5.09 by December 31, 2025. This period is characterized by substantial fluctuations in both the ratio and cost of sales, making it difficult to discern a clear, consistent trend. The significant increase in accounts payable observed in the first half of 2024 likely contributes to the lower turnover values during that period.
Overall, the payables turnover ratio demonstrates a dynamic relationship with cost of sales. While periods of increasing turnover suggest improved efficiency, declines may indicate either slower payment practices or increased purchasing activity. The recent volatility warrants further investigation to determine the underlying drivers and potential implications for the company’s financial health.
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Working Capital Turnover
Amgen Inc., working capital turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 29,057) | 27,885) | 26,734) | 26,929) | 29,030) | 26,766) | 27,206) | 28,029) | 30,332) | 48,477) | 47,380) | 44,703) | 22,186) | 24,062) | 19,322) | 18,520) | |||||
| Less: Current liabilities | 25,489) | 21,791) | 20,476) | 23,008) | 23,099) | 20,312) | 21,517) | 19,714) | 18,392) | 16,954) | 17,097) | 14,215) | 15,687) | 14,331) | 12,618) | 12,886) | |||||
| Working capital | 3,568) | 6,094) | 6,258) | 3,921) | 5,931) | 6,454) | 5,689) | 8,315) | 11,940) | 31,523) | 30,283) | 30,488) | 6,499) | 9,731) | 6,704) | 5,634) | |||||
| Product sales | 9,367) | 9,137) | 8,771) | 7,873) | 8,716) | 8,151) | 8,041) | 7,118) | 7,833) | 6,548) | 6,683) | 5,846) | 6,552) | 6,237) | 6,281) | 5,731) | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | 9.85 | 5.66 | 5.35 | 8.36 | 5.40 | 4.83 | 5.19 | 3.39 | 2.25 | 0.81 | 0.84 | 0.82 | 3.82 | 2.52 | 3.67 | 4.34 | |||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Bristol-Myers Squibb Co. | 7.83 | 6.20 | 8.09 | 6.87 | 7.79 | 8.49 | 12.50 | 15.56 | 4.60 | 10.47 | 5.53 | 5.55 | 8.30 | 5.75 | 4.92 | 6.24 | |||||
| Danaher Corp. | 4.13 | 7.39 | 5.71 | 8.27 | 8.85 | 8.73 | 8.10 | 3.60 | 4.22 | 2.18 | 3.08 | 3.81 | 4.20 | 5.00 | 5.43 | 5.91 | |||||
| Eli Lilly & Co. | 3.19 | 2.71 | 4.92 | 4.38 | 10.32 | 6.06 | 12.62 | 5.45 | — | 31.79 | 12.21 | 5.77 | 31.84 | 14.71 | 19.45 | 8.19 | |||||
| Gilead Sciences Inc. | 4.43 | 5.12 | 8.14 | 6.27 | 3.99 | 9.22 | 17.98 | 26.58 | 5.61 | 6.74 | 84.15 | 9.14 | 8.42 | 8.56 | 6.87 | 6.68 | |||||
| Johnson & Johnson | 62.88 | 24.63 | 284.99 | 6.10 | 15.94 | 58.86 | 22.29 | 10.35 | 11.81 | 9.37 | 14.06 | 23.02 | — | 4.88 | 5.02 | 5.57 | |||||
| Merck & Co. Inc. | 4.28 | 3.39 | 5.77 | 6.19 | 6.19 | 5.86 | 5.14 | 9.68 | 9.29 | 6.69 | 8.86 | 5.63 | 5.16 | 5.58 | 6.39 | 6.09 | |||||
| Pfizer Inc. | 10.58 | 6.08 | 10.68 | 6.64 | 8.64 | 5,036.00 | — | 29.17 | — | 1.62 | 2.03 | 6.89 | 11.00 | 3.83 | 5.05 | 6.10 | |||||
| Regeneron Pharmaceuticals Inc. | 1.05 | 1.05 | 1.08 | 1.01 | 0.97 | 0.88 | 0.87 | 0.86 | 0.82 | 0.87 | 0.92 | 0.90 | 0.96 | 1.09 | 1.14 | 1.46 | |||||
| Thermo Fisher Scientific Inc. | 3.30 | 5.90 | 3.64 | 4.20 | 4.87 | 4.61 | 3.96 | 4.38 | 4.05 | 4.86 | 7.40 | 10.13 | 5.46 | 5.40 | 6.03 | 6.13 | |||||
| Vertex Pharmaceuticals Inc. | 1.64 | 1.92 | 1.82 | 1.78 | 1.83 | 1.82 | 1.92 | 1.07 | 0.93 | 0.87 | 0.90 | 0.93 | 0.85 | 0.90 | 0.93 | 0.97 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Working capital turnover
= (Product salesQ4 2025
+ Product salesQ3 2025
+ Product salesQ2 2025
+ Product salesQ1 2025)
÷ Working capital
= (9,367 + 9,137 + 8,771 + 7,873)
÷ 3,568 = 9.85
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits considerable fluctuation over the observed period. Initially, the ratio decreased from 4.34 in March 2022 to 2.52 in September 2022, before recovering to 3.82 by December 2022. A significant decline then occurred, reaching a low of 0.82 in March 2023, followed by a slight increase to 0.84 in June 2023 and 0.81 in September 2023.
A substantial upward trend is then evident, with the ratio increasing to 2.25 in December 2023, 3.39 in March 2024, 5.19 in June 2024, and peaking at 5.40 in December 2024. This positive momentum continued into 2025, reaching 8.36 in March 2025, 5.35 in June 2025, 5.66 in September 2025, and culminating in a high of 9.85 in December 2025.
- Initial Decline (March 2022 - September 2022)
- The initial decrease in the working capital turnover ratio suggests a less efficient utilization of working capital during this period. This could be attributed to an increase in working capital relative to product sales, or a decrease in product sales, or a combination of both.
- Significant Low (March 2023 - September 2023)
- The exceptionally low ratios observed in the first three quarters of 2023 indicate a substantial slowdown in the conversion of working capital into sales. The significant increase in working capital during this period, as evidenced by the figures, appears to be disproportionate to the level of product sales.
- Subsequent Improvement (December 2023 - December 2025)
- The marked improvement in the ratio from December 2023 onwards suggests a more effective management of working capital and a stronger correlation between working capital levels and product sales. The consistent increases indicate a growing efficiency in utilizing resources to generate revenue.
- Correlation with Product Sales
- Product sales generally increased from December 2023 through December 2025, which aligns with the observed increase in the working capital turnover ratio. This suggests that the improved ratio is, at least partially, driven by increased sales volume.
Overall, the working capital turnover ratio demonstrates a volatile pattern, with a notable recovery and strong performance in the latter part of the analyzed timeframe. The substantial fluctuations warrant further investigation to understand the underlying drivers and ensure sustainable improvements in working capital efficiency.
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Average Inventory Processing Period
Amgen Inc., average inventory processing period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Inventory turnover | 1.93 | 1.92 | 1.88 | 1.88 | 1.84 | 1.75 | 1.42 | 1.14 | 0.89 | 1.41 | 1.38 | 1.31 | 1.30 | 1.34 | 1.40 | 1.48 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average inventory processing period1 | 189 | 190 | 194 | 195 | 199 | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 99 | 100 | 107 | 98 | 90 | 89 | 75 | 75 | 73 | 77 | 85 | 81 | 75 | 66 | 73 | 74 | |||||
| Bristol-Myers Squibb Co. | 70 | 69 | 70 | 69 | 67 | 102 | 98 | 99 | 91 | 84 | 83 | 93 | 84 | 76 | 79 | 80 | |||||
| Danaher Corp. | 90 | 99 | 101 | 96 | 88 | 101 | 102 | 98 | 96 | 104 | 102 | 104 | 91 | 96 | 98 | 94 | |||||
| Eli Lilly & Co. | 454 | 441 | 435 | 379 | 329 | 349 | 316 | 312 | 298 | 261 | 267 | 268 | 237 | 196 | 204 | 189 | |||||
| Gilead Sciences Inc. | 104 | 105 | 108 | 103 | 100 | 101 | 110 | 102 | 100 | 105 | 106 | 102 | 97 | 78 | 81 | 81 | |||||
| Johnson & Johnson | 171 | 176 | 168 | 163 | 165 | 169 | 166 | 158 | 154 | 149 | 164 | 155 | 147 | 136 | 136 | 132 | |||||
| Merck & Co. Inc. | 148 | 160 | 162 | 150 | 147 | 149 | 153 | 151 | 144 | 139 | 137 | 134 | 124 | 118 | 119 | 133 | |||||
| Pfizer Inc. | 242 | 251 | 239 | 229 | 222 | 219 | 178 | 170 | 149 | 138 | 158 | 119 | 95 | 101 | 100 | 99 | |||||
| Regeneron Pharmaceuticals Inc. | 556 | 571 | 570 | 582 | 572 | 573 | 562 | 553 | 519 | 508 | 532 | 549 | 562 | 440 | 379 | 287 | |||||
| Thermo Fisher Scientific Inc. | 75 | 82 | 80 | 76 | 72 | 79 | 76 | 74 | 72 | 76 | 79 | 79 | 79 | 85 | 91 | 94 | |||||
| Vertex Pharmaceuticals Inc. | 373 | 369 | 345 | 320 | 287 | 267 | 238 | 222 | 214 | 213 | 192 | 177 | 156 | 136 | 135 | 129 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.93 = 189
2 Click competitor name to see calculations.
The average inventory processing period exhibited considerable fluctuation throughout the observed timeframe. Initially, the period lengthened from 247 days in March 2022 to 281 days by December 2022, indicating a slowing in the rate at which inventory was sold and replenished. A significant spike to 411 days occurred in December 2023, representing a substantial increase in the time inventory was held before sale.
- Initial Lengthening (Mar 2022 - Dec 2022)
- From March 2022 through December 2022, the average inventory processing period consistently increased. This suggests a potential build-up of inventory, possibly due to decreased sales, production inefficiencies, or strategic inventory accumulation. The increase from 247 to 281 days represents a 13.7% lengthening of the processing period.
- Dramatic Increase and Subsequent Decline (Dec 2023 - Jun 2025)
- A pronounced increase to 411 days was observed in December 2023. Following this peak, the period began a consistent decline, falling to 189 days by December 2025. This suggests a correction following a period of unusually slow inventory turnover, potentially driven by a successful clearance of accumulated stock or improved demand. The decline represents a 54.2% reduction in the processing period over this timeframe.
The inventory turnover ratio generally mirrored the trends in the average inventory processing period. Lower turnover ratios corresponded with longer processing periods, and vice versa. The significant drop in inventory turnover to 0.89 in December 2023 aligns with the peak in the processing period, reinforcing the observation of inventory accumulation during that time. The subsequent increase in the turnover ratio, peaking at 1.93 in December 2025, coincides with the reduction in the processing period, indicating improved inventory management.
- Recent Stabilization (Sep 2024 - Dec 2025)
- From September 2024 through December 2025, the average inventory processing period demonstrated relative stability, fluctuating between 189 and 209 days. This suggests a potential normalization of inventory management practices and a consistent rate of inventory flow. The inventory turnover ratio also showed stability during this period.
Overall, the period under review demonstrates a cycle of inventory build-up, a significant correction, and subsequent stabilization. The substantial increase in the processing period in late 2023 warrants further investigation to understand the underlying causes and assess the effectiveness of corrective actions taken.
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Average Receivable Collection Period
Amgen Inc., average receivable collection period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Receivables turnover | 3.67 | 4.06 | 3.85 | 4.03 | 4.72 | 4.26 | 4.26 | 4.16 | 3.70 | 4.17 | 4.34 | 4.34 | 4.46 | 4.60 | 4.62 | 4.81 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | 99 | 90 | 95 | 91 | 77 | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 75 | 78 | 79 | 79 | 71 | 75 | 78 | 80 | 75 | 76 | 75 | 74 | 71 | 68 | 72 | 69 | |||||
| Danaher Corp. | 58 | 56 | 54 | 54 | 54 | 54 | 51 | 52 | 60 | 59 | 55 | 53 | 57 | 51 | 54 | 53 | |||||
| Eli Lilly & Co. | 99 | 99 | 97 | 90 | 89 | 92 | 103 | 80 | 97 | 93 | 93 | 99 | 88 | 84 | 80 | 79 | |||||
| Gilead Sciences Inc. | 62 | 65 | 61 | 56 | 56 | 59 | 62 | 62 | 63 | 64 | 57 | 57 | 65 | 59 | 55 | 51 | |||||
| Johnson & Johnson | 67 | 70 | 72 | 65 | 61 | 67 | 67 | 64 | 64 | 62 | 68 | 65 | 62 | 60 | 62 | 60 | |||||
| Merck & Co. Inc. | 66 | 69 | 68 | 62 | 58 | 66 | 68 | 68 | 63 | 64 | 69 | 66 | 58 | 59 | 62 | 66 | |||||
| Pfizer Inc. | 69 | 83 | 69 | 69 | 66 | 87 | 74 | 72 | 69 | 58 | 48 | 48 | 40 | 59 | 55 | 52 | |||||
| Regeneron Pharmaceuticals Inc. | 146 | 146 | 144 | 144 | 160 | 161 | 155 | 146 | 158 | 156 | 148 | 151 | 160 | 148 | 132 | 107 | |||||
| Thermo Fisher Scientific Inc. | 73 | 74 | 73 | 72 | 70 | 71 | 68 | 68 | 70 | 70 | 67 | 66 | 66 | 63 | 66 | 70 | |||||
| Vertex Pharmaceuticals Inc. | 62 | 61 | 61 | 59 | 53 | 60 | 58 | 64 | 58 | 58 | 60 | 61 | 59 | 58 | 58 | 59 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.67 = 99
2 Click competitor name to see calculations.
The average receivable collection period exhibited fluctuations over the observed timeframe. Initially, the period remained relatively stable before demonstrating an increasing trend, followed by a period of stabilization and then another increase.
- Overall Trend
- From March 31, 2022, to December 31, 2022, the average receivable collection period increased from 76 days to 99 days. This indicates a lengthening in the time it takes to collect receivables. Following this increase, the period decreased to 77 days by December 31, 2023, suggesting improved collection efficiency. However, the period then increased again, reaching 99 days by December 31, 2025.
- Initial Stability (Q1 2022 - Q3 2022)
- The average receivable collection period remained consistent at 76 to 79 days during the first three quarters of 2022. This suggests a stable credit and collection policy during this period.
- Increase in Collection Period (Q4 2022 - Q1 2023)
- A notable increase in the average receivable collection period occurred in the fourth quarter of 2022, rising to 82 days, and continued into the first quarter of 2023, reaching 84 days. This could be attributed to factors such as extended payment terms offered to customers, a change in the customer mix, or potential delays in the collection process.
- Subsequent Decrease (Q4 2023)
- The fourth quarter of 2023 saw a decrease in the average receivable collection period to 77 days. This improvement may be due to more aggressive collection efforts or a change in customer payment behavior.
- Recent Fluctuations (2024-2025)
- The period fluctuated between 86 and 95 days throughout 2024 and the first three quarters of 2025. The final quarter of 2025 saw a return to 99 days, mirroring the peak observed in late 2022. This recent volatility warrants further investigation to determine the underlying causes and potential impact on cash flow.
The observed trends suggest potential cyclicality or sensitivity to external factors influencing the company’s ability to collect receivables. Continued monitoring of this metric is recommended to identify any persistent issues and implement appropriate strategies to optimize cash flow.
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Operating Cycle
Amgen Inc., operating cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 189 | 190 | 194 | 195 | 199 | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | |||||
| Average receivable collection period | 99 | 90 | 95 | 91 | 77 | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Operating cycle1 | 288 | 280 | 289 | 286 | 276 | 295 | 343 | 409 | 510 | 347 | 349 | 363 | 363 | 351 | 339 | 323 | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 174 | 178 | 186 | 177 | 161 | 164 | 153 | 155 | 148 | 153 | 160 | 155 | 146 | 134 | 145 | 143 | |||||
| Danaher Corp. | 148 | 155 | 155 | 150 | 142 | 155 | 153 | 150 | 156 | 163 | 157 | 157 | 148 | 147 | 152 | 147 | |||||
| Eli Lilly & Co. | 553 | 540 | 532 | 469 | 418 | 441 | 419 | 392 | 395 | 354 | 360 | 367 | 325 | 280 | 284 | 268 | |||||
| Gilead Sciences Inc. | 166 | 170 | 169 | 159 | 156 | 160 | 172 | 164 | 163 | 169 | 163 | 159 | 162 | 137 | 136 | 132 | |||||
| Johnson & Johnson | 238 | 246 | 240 | 228 | 226 | 236 | 233 | 222 | 218 | 211 | 232 | 220 | 209 | 196 | 198 | 192 | |||||
| Merck & Co. Inc. | 214 | 229 | 230 | 212 | 205 | 215 | 221 | 219 | 207 | 203 | 206 | 200 | 182 | 177 | 181 | 199 | |||||
| Pfizer Inc. | 311 | 334 | 308 | 298 | 288 | 306 | 252 | 242 | 218 | 196 | 206 | 167 | 135 | 160 | 155 | 151 | |||||
| Regeneron Pharmaceuticals Inc. | 702 | 717 | 714 | 726 | 732 | 734 | 717 | 699 | 677 | 664 | 680 | 700 | 722 | 588 | 511 | 394 | |||||
| Thermo Fisher Scientific Inc. | 148 | 156 | 153 | 148 | 142 | 150 | 144 | 142 | 142 | 146 | 146 | 145 | 145 | 148 | 157 | 164 | |||||
| Vertex Pharmaceuticals Inc. | 435 | 430 | 406 | 379 | 340 | 327 | 296 | 286 | 272 | 271 | 252 | 238 | 215 | 194 | 193 | 188 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 189 + 99 = 288
2 Click competitor name to see calculations.
The operating cycle exhibited notable fluctuations throughout the analyzed period, spanning from March 31, 2022, to December 31, 2025. Both components of the operating cycle – average inventory processing period and average receivable collection period – contributed to these changes. An examination of these components reveals distinct trends and potential areas for operational focus.
- Average Inventory Processing Period
- The average inventory processing period generally increased from 247 days in March 31, 2022, to a peak of 281 days by December 31, 2022. This trend reversed in the following quarters, decreasing to 259 days by September 30, 2023. A significant spike occurred in December 31, 2023, reaching 411 days, before declining substantially to 189 days by December 31, 2025. This suggests potential disruptions or changes in inventory management practices around the end of 2023, followed by significant improvements in efficiency. The period has consistently trended downward since the peak in late 2023.
- Average Receivable Collection Period
- The average receivable collection period demonstrated a more gradual increase, moving from 76 days in March 31, 2022, to 84 days in March 31, 2023. It continued to rise, peaking at 99 days in December 31, 2023, and remained elevated through March 31, 2025, reaching 95 days in June 30, 2025. A final increase to 99 days was observed in December 31, 2025. This indicates a lengthening of the time required to collect receivables, potentially reflecting changes in credit terms or customer payment behavior.
- Operating Cycle
- Consequently, the operating cycle followed a similar pattern of increase and subsequent decrease. It rose from 323 days in March 31, 2022, to a high of 363 days in March 31, 2023, and peaked at 510 days in December 31, 2023. Following this peak, the operating cycle decreased significantly, reaching 288 days by December 31, 2025. The substantial increase in the operating cycle in late 2023 was primarily driven by the surge in the average inventory processing period, although the increasing receivable collection period also contributed. The subsequent decline suggests successful efforts to streamline both inventory management and receivable collection processes.
The pronounced volatility in the average inventory processing period warrants further investigation to understand the underlying causes of the spike in late 2023 and the subsequent improvements. The consistent, albeit slower, increase in the average receivable collection period also merits attention, as prolonged collection times can impact cash flow. Overall, the trend indicates a return to improved operational efficiency towards the end of the analyzed period, but continued monitoring of both inventory and receivable management is recommended.
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Average Payables Payment Period
Amgen Inc., average payables payment period calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Payables turnover | 5.09 | 4.29 | 4.12 | 5.25 | 6.74 | 5.99 | 5.01 | 6.10 | 5.32 | 5.22 | 5.67 | 4.97 | 4.08 | 5.30 | 5.09 | 4.65 | |||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | 72 | 85 | 89 | 70 | 54 | 61 | 73 | 60 | 69 | 70 | 64 | 73 | 90 | 69 | 72 | 78 | |||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Bristol-Myers Squibb Co. | 94 | 107 | 140 | 104 | 94 | 106 | 120 | 117 | 111 | 97 | 108 | 114 | 109 | 96 | 107 | 112 | |||||
| Danaher Corp. | 67 | 63 | 65 | 66 | 66 | 60 | 63 | 62 | 65 | 65 | 63 | 64 | 67 | 65 | 73 | 72 | |||||
| Eli Lilly & Co. | 178 | 154 | 161 | 140 | 140 | 135 | 142 | 127 | 134 | 130 | 138 | 119 | 106 | 86 | 87 | 70 | |||||
| Gilead Sciences Inc. | 42 | 48 | 34 | 43 | 49 | 49 | 29 | 34 | 31 | 37 | 40 | 41 | 58 | 33 | 31 | 32 | |||||
| Johnson & Johnson | 145 | 119 | 119 | 123 | 137 | 120 | 121 | 113 | 132 | 111 | 133 | 120 | 137 | 118 | 116 | 112 | |||||
| Merck & Co. Inc. | 98 | 103 | 95 | 92 | 98 | 86 | 83 | 81 | 89 | 80 | 80 | 84 | 89 | 71 | 75 | 86 | |||||
| Pfizer Inc. | 119 | 110 | 106 | 110 | 115 | 99 | 79 | 87 | 98 | 72 | 93 | 76 | 72 | 66 | 59 | 55 | |||||
| Regeneron Pharmaceuticals Inc. | 163 | 158 | 129 | 129 | 146 | 94 | 110 | 137 | 122 | 106 | 116 | 136 | 138 | 98 | 91 | 68 | |||||
| Thermo Fisher Scientific Inc. | 50 | 44 | 43 | 44 | 45 | 38 | 37 | 37 | 41 | 35 | 34 | 39 | 48 | 37 | 41 | 46 | |||||
| Vertex Pharmaceuticals Inc. | 102 | 95 | 102 | 105 | 98 | 98 | 85 | 96 | 106 | 117 | 115 | 107 | 103 | 44 | 73 | 66 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.09 = 72
2 Click competitor name to see calculations.
The average payables payment period exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial decreasing trend was followed by periods of increase and subsequent stabilization, suggesting evolving supplier relationships and payment practices.
- Overall Trend
- From March 31, 2022 (78 days) to June 30, 2022 (72 days), a decrease in the average payables payment period was observed. This was followed by a continued decrease to 69 days by September 30, 2022. A notable increase to 90 days occurred by December 31, 2022, before decreasing again to 73 days by March 31, 2023. The period then decreased to a low of 61 days by September 30, 2024, before increasing to 89 days by June 30, 2025, and finally decreasing to 72 days by December 31, 2025.
- Short-Term Fluctuations
- The most significant increase in the average payables payment period occurred between September 30, 2022, and December 31, 2022, representing a 21-day increase. A subsequent increase of 16 days was observed between March 31, 2025, and June 30, 2025. These increases may indicate a deliberate strategy to manage cash flow or changes in supplier credit terms. Conversely, the period from September 30, 2023, to December 31, 2023, showed a relatively stable payment period, fluctuating only slightly.
- Recent Performance
- The final two reported periods (September 30, 2025, and December 31, 2025) show a decrease from 85 days to 72 days. This recent decline could suggest a renewed focus on prompt payment to suppliers, potentially to leverage early payment discounts or strengthen supplier relationships. The period ended at 72 days, which is comparable to the levels observed in the first half of 2023.
The observed variations in the average payables payment period warrant further investigation to understand the underlying drivers and their impact on the company’s financial position and supplier relationships.
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Cash Conversion Cycle
Amgen Inc., cash conversion cycle calculation (quarterly data)
No. days
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Average inventory processing period | 189 | 190 | 194 | 195 | 199 | 209 | 257 | 321 | 411 | 259 | 265 | 279 | 281 | 272 | 260 | 247 | |||||
| Average receivable collection period | 99 | 90 | 95 | 91 | 77 | 86 | 86 | 88 | 99 | 88 | 84 | 84 | 82 | 79 | 79 | 76 | |||||
| Average payables payment period | 72 | 85 | 89 | 70 | 54 | 61 | 73 | 60 | 69 | 70 | 64 | 73 | 90 | 69 | 72 | 78 | |||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Cash conversion cycle1 | 216 | 195 | 200 | 216 | 222 | 234 | 270 | 349 | 441 | 277 | 285 | 290 | 273 | 282 | 267 | 245 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||
| Danaher Corp. | 81 | 92 | 90 | 84 | 76 | 95 | 90 | 88 | 91 | 98 | 94 | 93 | 81 | 82 | 79 | 75 | |||||
| Eli Lilly & Co. | 375 | 386 | 371 | 329 | 278 | 306 | 277 | 265 | 261 | 224 | 222 | 248 | 219 | 194 | 197 | 198 | |||||
| Gilead Sciences Inc. | 124 | 122 | 135 | 116 | 107 | 111 | 143 | 130 | 132 | 132 | 123 | 118 | 104 | 104 | 105 | 100 | |||||
| Johnson & Johnson | 93 | 127 | 121 | 105 | 89 | 116 | 112 | 109 | 86 | 100 | 99 | 100 | 72 | 78 | 82 | 80 | |||||
| Merck & Co. Inc. | 116 | 126 | 135 | 120 | 107 | 129 | 138 | 138 | 118 | 123 | 126 | 116 | 93 | 106 | 106 | 113 | |||||
| Pfizer Inc. | 192 | 224 | 202 | 188 | 173 | 207 | 173 | 155 | 120 | 124 | 113 | 91 | 63 | 94 | 96 | 96 | |||||
| Regeneron Pharmaceuticals Inc. | 539 | 559 | 585 | 597 | 586 | 640 | 607 | 562 | 555 | 558 | 564 | 564 | 584 | 490 | 420 | 326 | |||||
| Thermo Fisher Scientific Inc. | 98 | 112 | 110 | 104 | 97 | 112 | 107 | 105 | 101 | 111 | 112 | 106 | 97 | 111 | 116 | 118 | |||||
| Vertex Pharmaceuticals Inc. | 333 | 335 | 304 | 274 | 242 | 229 | 211 | 190 | 166 | 154 | 137 | 131 | 112 | 150 | 120 | 122 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 189 + 99 – 72 = 216
2 Click competitor name to see calculations.
The short-term operating activity of the company, as measured by its cash conversion cycle and component ratios, exhibits notable fluctuations over the observed period. Generally, a trend towards optimization is visible in the more recent quarters, though significant variability persists. The analysis below details observations for each component and the overall cash conversion cycle.
- Average Inventory Processing Period
- The average inventory processing period demonstrated a consistent increase from 247 days in March 2022 to a peak of 281 days in December 2022. A substantial increase to 411 days was observed in December 2023, representing a significant outlier. Following this peak, a marked decrease is evident, falling to 189 days by December 2025. This suggests a substantial improvement in inventory management efficiency in the latter part of the period, potentially due to streamlined supply chains or more effective inventory control measures.
- Average Receivable Collection Period
- The average receivable collection period showed a gradual increase from 76 days in March 2022 to 99 days in December 2023. This indicates a lengthening of the time required to collect payments from customers. However, the period decreased to 77 days in December 2024 before increasing again to 99 days in December 2025. This fluctuation suggests potential inconsistencies in credit policies or collection efforts, or perhaps seasonal variations in customer payment behavior.
- Average Payables Payment Period
- The average payables payment period fluctuated throughout the period. It decreased from 78 days in March 2022 to 69 days in September 2022, then increased to 90 days in December 2022. A subsequent decline to 54 days was observed in December 2024, followed by an increase to 89 days in June 2025 and a decrease to 72 days in December 2025. These changes suggest the company is actively managing its payment terms with suppliers, potentially leveraging early payment discounts or negotiating extended payment periods.
- Cash Conversion Cycle
- The cash conversion cycle mirrored the trends observed in its component ratios. It increased from 245 days in March 2022 to 282 days in September 2022, then decreased to 273 days in December 2022. A significant peak of 441 days was recorded in December 2023, largely driven by the extended inventory processing period. The cycle then decreased substantially, reaching 216 days in December 2025. This overall downward trend in the cash conversion cycle indicates improved efficiency in managing working capital, freeing up cash for other corporate purposes. However, the volatility, particularly the spike in late 2023, warrants further investigation to understand the underlying causes and ensure sustainable improvements.
In summary, while the company experienced periods of increased working capital duration, particularly in late 2023, the overall trend suggests a successful effort to optimize its cash conversion cycle in the more recent quarters. Continued monitoring of these ratios is recommended to ensure these improvements are sustained and to identify any potential areas for further efficiency gains.
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