Amgen Inc (AMGN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 18,097,000 | 14,987,000 | 14,422,000 | 7,343,000 | 5,514,000 |
| Inventory | US$ in thousands | 9,518,000 | 4,930,000 | 4,086,000 | 3,893,000 | 3,584,000 |
| Inventory turnover | 1.90 | 3.04 | 3.53 | 1.89 | 1.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $18,097,000K ÷ $9,518,000K
= 1.90
AMGEN Inc.'s inventory turnover ratio has shown some fluctuations over the past five years. The ratio decreased from 1.22 in 2019 to 0.89 in 2023, indicating the company took longer to sell its inventory in 2023 compared to 2019. This may suggest potential issues such as excess inventory levels, slower sales, or ineffective inventory management. However, in 2022 and 2021, the inventory turnover ratio improved to 1.30 and 1.58, respectively, indicating an increase in the efficiency of inventory management and quicker inventory turnover during these years. The ratio remained constant at 1.58 from 2021 to 2022, suggesting consistent performance in managing inventory levels. It is important for AMGEN Inc. to monitor its inventory turnover and take necessary actions to optimize inventory levels for improved efficiency and profitability.
Peer comparison
Dec 31, 2023