Amgen Inc (AMGN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	25,976,000	18,426,000	18,462,000	18,381,000	18,649,000	51,099,000	51,147,000	51,407,000	51,365,000	25,471,000	25,484,000	25,164,000	25,424,000	24,987,000	24,301,000	23,966,000	23,362,000	23,395,000	23,562,000	23,750,000
Property, plant and equipment	US$ in thousands	5,941,000	5,563,000	5,532,000	5,460,000	5,427,000	5,188,000	5,158,000	5,142,000	5,184,000	4,982,000	4,906,000	4,855,000	4,889,000	4,816,000	4,843,000	4,879,000	4,928,000	4,901,000	4,882,000	4,892,000
Fixed asset turnover		4.37	3.31	3.34	3.37	3.44	9.85	9.92	10.00	9.91	5.11	5.19	5.18	5.20	5.19	5.02	4.91	4.74	4.77	4.83	4.85

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $25,976,000K ÷ $5,941,000K
= 4.37

Fixed asset turnover is a measure of how efficiently a company utilizes its fixed assets to generate revenue. The fixed asset turnover ratio for AMGEN Inc. has been relatively stable over the past eight quarters, ranging from 4.74 to 5.12.

A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets, which is generally seen as a positive sign of operational efficiency. In the case of AMGEN Inc., the ratio has shown a slight decline over the quarters, which could suggest a decrease in the efficiency of utilizing fixed assets to generate revenue.

Overall, while AMGEN Inc. has maintained a healthy fixed asset turnover ratio above 4, investors and analysts may want to further investigate the reasons behind the slight decline in the ratio to assess the company's operational performance and efficiency in utilizing its fixed assets.