Amgen Inc (AMGN)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	12,858,000	12,858,000	11,354,000	9,931,000	8,451,000	7,086,000	6,868,000	6,565,000	6,406,000	6,377,000	6,398,000	6,525,000	6,454,000	6,333,000	6,285,000	6,136,000	6,159,000	5,815,000	5,290,000	4,814,000
Inventory	US$ in thousands	6,998,000	7,362,000	7,995,000	8,724,000	9,518,000	5,026,000	4,978,000	5,011,000	4,930,000	4,757,000	4,554,000	4,411,000	4,086,000	4,152,000	4,115,000	4,017,000	3,893,000	3,942,000	3,840,000	3,682,000
Inventory turnover		1.84	1.75	1.42	1.14	0.89	1.41	1.38	1.31	1.30	1.34	1.40	1.48	1.58	1.53	1.53	1.53	1.58	1.48	1.38	1.31

December 31, 2024 calculation

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

Inventory turnover is a financial ratio that measures the number of times a company sells and replaces its inventory during a specific period. A higher inventory turnover generally indicates more efficient inventory management.

For Amgen Inc, the inventory turnover has fluctuated over the years. From March 31, 2020, to December 31, 2020, there was a gradual increase in inventory turnover from 1.31 to 1.58, indicating an improvement in managing inventory levels. However, there was a slight decline in inventory turnover by March 31, 2021, which remained relatively stable at around 1.53 for the next few quarters.

In the second half of 2022, there was a noticeable decline in inventory turnover, reaching a low of 1.30 by December 31, 2022. The trend continued into 2023, with inventory turnover dropping to 0.89 by December 31, 2023, signaling potential inventory management challenges.

However, there was a notable improvement in inventory turnover in the following quarters of 2024, reaching 1.84 by December 31, 2024. This significant increase suggests that Amgen Inc was able to effectively manage its inventory levels and more efficiently turn over its inventory during that period.

Overall, Amgen Inc's inventory turnover has experienced fluctuations over the years, indicating varying degrees of efficiency in managing and selling its inventory. Investors and stakeholders may want to closely monitor this ratio to assess the company's inventory management practices and overall operational efficiency.