Amgen Inc (AMGN)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	12,858,000	8,451,000	6,406,000	6,454,000	6,159,000
Inventory	US$ in thousands	6,998,000	9,518,000	4,930,000	4,086,000	3,893,000
Inventory turnover		1.84	0.89	1.30	1.58	1.58

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $12,858,000K ÷ $6,998,000K
= 1.84

The inventory turnover ratio for Amgen Inc has shown some fluctuations over the years. In 2020 and 2021, the ratio remained stable at 1.58, indicating that the company was able to effectively manage its inventory levels and convert them into sales within a consistent timeframe.

However, in 2022, the inventory turnover ratio decreased to 1.30, suggesting a slight decrease in the rate at which the company was able to sell its inventory. This could be indicative of potential issues such as overstocking or slow-moving inventory.

By 2023, the inventory turnover ratio dropped further to 0.89, indicating a significant decline in the company's ability to sell its inventory efficiently. This could raise concerns about inventory management practices and potential obsolescence of inventory.

In 2024, the inventory turnover ratio rebounded significantly to 1.84, surpassing the levels seen in the previous years. This could signal improvements in inventory management processes or increased demand for the company's products.

Overall, fluctuations in the inventory turnover ratio for Amgen Inc reflect changes in the company's inventory management efficiency and sales performance over the years, highlighting the importance of monitoring this metric for operational effectiveness.