Amgen Inc. (AMGN)

Short-term (Operating) Activity Analysis Quarterly Data

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

Amgen Inc., short-term (operating) activity ratios (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Turnover Ratios
	Inventory turnover
	Receivables turnover
	Payables turnover
	Working capital turnover
	Average No. of Days
	Average inventory processing period
	Add: Average receivable collection period
	Operating cycle
	Less: Average payables payment period
	Cash conversion cycle

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Amgen Inc.'s inventory turnover improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Amgen Inc.'s receivables turnover improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Amgen Inc.'s payables turnover declined from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Amgen Inc.'s working capital turnover deteriorated from Q2 2017 to Q3 2017 but then improved from Q3 2017 to Q4 2017 not reaching Q2 2017 level.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Amgen Inc.'s average inventory processing period improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Amgen Inc.'s average receivable collection period improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Amgen Inc.'s operating cycle improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Amgen Inc.'s average payables payment period increased from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Amgen Inc.'s cash conversion cycle improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Inventory Turnover

Amgen Inc., inventory turnover calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data (USD $ in millions)
	Cost of sales
	Inventories
	Ratio
	Inventory turnover¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Inventory turnover = (Cost of sales_{Q4 2017} + Cost of sales_{Q3 2017} + Cost of sales_{Q2 2017} + Cost of sales_{Q1 2017}) ÷ Inventories
= ( + + + ) ÷ =

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Amgen Inc.'s inventory turnover improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Receivables Turnover

Amgen Inc., receivables turnover calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data (USD $ in millions)
	Product sales
	Trade receivables, net
	Ratio
	Receivables turnover¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Receivables turnover = (Product sales_{Q4 2017} + Product sales_{Q3 2017} + Product sales_{Q2 2017} + Product sales_{Q1 2017}) ÷ Trade receivables, net
= ( + + + ) ÷ =

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Amgen Inc.'s receivables turnover improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Payables Turnover

Amgen Inc., payables turnover calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data (USD $ in millions)
	Cost of sales
	Accounts payable
	Ratio
	Payables turnover¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Payables turnover = (Cost of sales_{Q4 2017} + Cost of sales_{Q3 2017} + Cost of sales_{Q2 2017} + Cost of sales_{Q1 2017}) ÷ Accounts payable
= ( + + + ) ÷ =

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Amgen Inc.'s payables turnover declined from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Working Capital Turnover

Amgen Inc., working capital turnover calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data (USD $ in millions)
	Current assets
	Less: Current liabilities
	Working capital
	Product sales
	Ratio
	Working capital turnover¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Working capital turnover = (Product sales_{Q4 2017} + Product sales_{Q3 2017} + Product sales_{Q2 2017} + Product sales_{Q1 2017}) ÷ Working capital
= ( + + + ) ÷ =

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Amgen Inc.'s working capital turnover deteriorated from Q2 2017 to Q3 2017 but then improved from Q3 2017 to Q4 2017 not reaching Q2 2017 level.

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Average Inventory Processing Period

Amgen Inc., average inventory processing period calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data
	Inventory turnover
	Ratio (no. of days)
	Average inventory processing period¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	Amgen Inc.'s average inventory processing period improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Average Receivable Collection Period

Amgen Inc., average receivable collection period calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data
	Receivables turnover
	Ratio (no. of days)
	Average receivable collection period¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Amgen Inc.'s average receivable collection period improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Operating Cycle

Amgen Inc., operating cycle calculation (quarterly data)

No. of days

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Ratio
	Operating cycle¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Operating cycle = Average inventory processing period + Average receivable collection period
= + =

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Amgen Inc.'s operating cycle improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Average Payables Payment Period

Amgen Inc., average payables payment period calculation (quarterly data)

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data
	Payables turnover
	Ratio (no. of days)
	Average payables payment period¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.	Amgen Inc.'s average payables payment period increased from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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Cash Conversion Cycle

Amgen Inc., cash conversion cycle calculation (quarterly data)

No. of days

		Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
	Selected Financial Data
	Average inventory processing period
	Average receivable collection period
	Average payables payment period
	Ratio
	Cash conversion cycle¹

Source: Based on data from Amgen Inc. Quarterly and Annual Reports

Q4 2017 Calculations

¹ Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	Amgen Inc.'s cash conversion cycle improved from Q2 2017 to Q3 2017 and from Q3 2017 to Q4 2017.

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	All companies
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality