Amgen Inc (AMGN)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 17,897,000 | 15,417,000 | 15,037,000 | 14,661,000 | 14,416,000 | 14,238,000 | 14,291,000 | 14,498,000 | 14,470,000 | 12,524,000 | 10,848,000 | 8,961,000 | 7,343,000 | 7,015,000 | 6,445,000 | 5,968,000 | 5,514,000 | 5,270,000 | 5,391,000 | 5,486,000 |
| Payables | US$ in thousands | 1,590,000 | 1,358,000 | 1,212,000 | 1,320,000 | 1,572,000 | 1,204,000 | 1,256,000 | 1,403,000 | 1,366,000 | 1,171,000 | 1,277,000 | 1,396,000 | 1,421,000 | 1,161,000 | 1,150,000 | 1,338,000 | 1,371,000 | 1,005,000 | 1,001,000 | 1,091,000 |
| Payables turnover | 11.26 | 11.35 | 12.41 | 11.11 | 9.17 | 11.83 | 11.38 | 10.33 | 10.59 | 10.70 | 8.49 | 6.42 | 5.17 | 6.04 | 5.60 | 4.46 | 4.02 | 5.24 | 5.39 | 5.03 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $17,897,000K ÷ $1,590,000K
= 11.26
The payables turnover ratio for AMGEN Inc. has exhibited variability over the past eight quarters, ranging from a low of 4.08 in Q4 2022 to a high of 5.67 in Q2 2023. The payables turnover ratio measures how efficiently a company manages its accounts payable by evaluating how many times a company pays off its average accounts payable balance during a period.
AMGEN Inc.'s payables turnover ratio indicates that, on average, the company pays off its accounts payable approximately 5 times a year. A higher payables turnover ratio generally suggests that a company is managing its payables effectively, as it indicates that the company is paying off its suppliers quickly. Conversely, a lower payables turnover ratio may suggest that the company is taking longer to settle its payables.
The fluctuation in AMGEN Inc.'s payables turnover ratio over the past quarters could be attributed to changes in the company's payment policies, relationship with suppliers, seasonal variations in business activity, or other factors impacting the company's accounts payable management. It is essential to monitor these trends over time to assess the company's ability to effectively manage its payables and maintain good relationships with suppliers.
Peer comparison
Dec 31, 2023