Amgen Inc (AMGN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.84 | 0.89 | 1.30 | 1.58 | 1.58 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.64 | 2.36 | 4.05 | 3.61 | 2.68 |
1. Inventory Turnover:
- The inventory turnover ratio for Amgen Inc remained relatively stable at around 1.58 for the years 2020 and 2021.
- However, there was a significant decrease in inventory turnover to 1.30 in 2022, which may indicate slower sales relative to its inventory holdings.
- The ratio further decreased to 0.89 in 2023, suggesting potential issues with managing inventory efficiently.
- There was a notable improvement in inventory turnover to 1.84 in 2024, which could signal a more effective management of inventory levels.
2. Receivables Turnover:
- Data for receivables turnover is not available for any of the years specified, indicating that the company's financial statements did not disclose this information.
3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not provided for the specified years, suggesting that the company did not disclose this information in its financial reports.
4. Working Capital Turnover:
- The working capital turnover ratio for Amgen Inc has shown a generally increasing trend over the years.
- The ratio increased from 2.68 in 2020 to 3.61 in 2021, indicating that the company was generating more revenue relative to its working capital.
- This trend continued with a further increase to 4.05 in 2022, suggesting improved efficiency in utilizing working capital.
- There was a slight decrease in the ratio to 2.36 in 2023, which could be a point of concern as it signifies a lower revenue generation compared to working capital.
- However, the working capital turnover ratio surged to 5.64 in 2024, indicating a significant improvement in the utilization of working capital to generate revenue.
In summary, the analysis of Amgen Inc's activity ratios reveals varying trends in inventory turnover and working capital turnover over the specified years, while data for receivables and payables turnover is not available. It is important for investors and stakeholders to monitor these ratios to assess the company's efficiency in managing its resources and generating revenue.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 198.65 | 411.08 | 280.90 | 231.08 | 230.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Amgen Inc's Days of Inventory on Hand (DOH) increased from 230.71 days in 2020 to 231.08 days in 2021. However, there was a significant jump to 280.90 days in 2022, followed by a substantial increase to 411.08 days in 2023. The DOH then decreased to 198.65 days in 2024.
The Days of Sales Outstanding (DSO) data was not provided for any of the years, indicating that information on how quickly the company collects its outstanding accounts receivable is not available.
The Number of Days of Payables data was also not provided, suggesting that the information on how long it takes the company to pay its suppliers is not available for the specified years.
In conclusion, the trend in Amgen Inc's Days of Inventory on Hand shows fluctuations over the years, with a notable increase in 2023 followed by a decrease in 2024. However, without additional information on DSO and payables, a comprehensive analysis of the company's activity ratios cannot be provided.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.85 | 5.01 | 5.20 |
| Total asset turnover | 0.36 | 0.29 | 0.40 | 0.42 | 0.40 |
Based on the provided data for Amgen Inc's long-term activity ratios, we can analyze the fixed asset turnover and total asset turnover ratios over the years.
1. Fixed Asset Turnover Ratio:
- The fixed asset turnover ratio measures how efficiently the company is generating sales from its fixed assets. A higher ratio indicates better utilization of fixed assets to generate revenues.
- In 2020, the fixed asset turnover ratio was 5.20, indicating that for every dollar invested in fixed assets, the company generated $5.20 in sales.
- The ratio slightly decreased to 5.01 in 2021 and further declined to 4.85 in 2022. This declining trend may indicate potential issues with utilizing fixed assets efficiently to generate sales.
- The data for 2023 and 2024 is not available ("—"), so we cannot assess the trend in those years.
2. Total Asset Turnover Ratio:
- The total asset turnover ratio measures how efficiently a company utilizes all its assets to generate sales. A higher ratio indicates better asset utilization.
- In 2020, the total asset turnover ratio was 0.40, meaning that for every dollar of assets, the company generated $0.40 in sales.
- The ratio increased slightly to 0.42 in 2021 but then decreased to 0.40 in 2022. This fluctuation may suggest varying levels of efficiency in utilizing total assets to generate sales.
- A significant drop was observed in 2023, with the total asset turnover ratio falling to 0.29, indicating a potential decrease in asset efficiency in generating sales.
- The ratio showed some recovery in 2024, increasing to 0.36, but it remains lower than the 2021 level.
Overall, the analysis suggests fluctuations in both fixed asset turnover and total asset turnover ratios for Amgen Inc over the years, indicating varying levels of efficiency in utilizing assets to generate sales. Monitoring these ratios can help assess the company's operational efficiency and asset management strategies.