Amgen Inc (AMGN)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	5.64	5.04	5.44	3.55	2.36	0.85	0.88	0.86	4.05	2.71	3.94	4.67	3.61	2.70	5.65	2.99	2.68	1.97	1.96	3.43

Activity ratios provide insight into how efficiently a company is managing its resources.

1. Inventory Turnover:
Amgen Inc's inventory turnover has fluctuated over the years but generally remained within a narrow range. The ratio indicates how many times the company's inventory is sold and replenished during a specific period. A higher turnover ratio suggests efficient inventory management, with a higher frequency of sales relative to the level of inventory.

2. Receivables Turnover:
The data does not provide information on Amgen Inc's receivables turnover, which is the ratio of net credit sales to average accounts receivable. This ratio would have been useful in assessing how quickly the company collects outstanding payments from customers.

3. Payables Turnover:
Similarly, data on Amgen Inc's payables turnover is not available. The payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio indicates more efficient use of trade credit and potentially better cash flow management.

4. Working Capital Turnover:
Amgen Inc's working capital turnover has varied significantly, indicating fluctuations in how effectively the company is utilizing its working capital to generate sales. A higher turnover ratio suggests that the company is efficiently managing its current assets and liabilities to support revenue generation.

Overall, analyzing these activity ratios can provide valuable insights into Amgen Inc's operational efficiency and effectiveness in managing its resources to drive business performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	198.65	208.99	257.02	320.64	411.08	258.89	264.56	278.60	280.90	272.28	259.80	246.75	231.08	239.30	238.98	238.95	230.71	247.43	264.95	279.17
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The Days of Inventory on Hand (DOH) for Amgen Inc have fluctuated over the periods analyzed, ranging from a low of 198.65 days as of December 31, 2024, to a high of 411.08 days as of December 31, 2023. The trend indicates some variability in managing inventory levels efficiently, which may impact working capital and storage costs.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data for Amgen Inc is not available, suggesting that information on accounts receivable turnover and accounts payable turnover is not provided in the dataset. These ratios are typically used to evaluate the efficiency of collecting receivables and managing payables, and the absence of this data limits the comprehensive analysis of the company's liquidity and operational efficiency.

Overall, while the Days of Inventory on Hand ratio provides insights into Amgen Inc's inventory management practices, the unavailability of DSO and payables data hinders a complete assessment of the company's activity ratios and working capital management. Additional information on these ratios would be beneficial in providing a more holistic view of Amgen Inc's operational efficiency and liquidity position.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	4.81	4.80	4.85	5.08	5.12	5.12	5.01	5.17	5.19	5.18	5.20	5.19	5.02	4.91
Total asset turnover	0.36	0.36	0.34	0.32	0.29	0.30	0.29	0.30	0.40	0.41	0.44	0.44	0.42	0.40	0.43	0.40	0.40	0.39	0.37	0.39

Based on the data provided, Amgen Inc's fixed asset turnover ratio has shown a fluctuating trend over the past few years. The ratio increased steadily from 4.91 in March 2020 to a peak of 5.20 in December 2020, indicating that the company generated $5.20 in sales for every $1 invested in fixed assets. However, the ratio has since declined to 4.80 in March 2023, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate revenue.

In contrast, Amgen Inc's total asset turnover ratio has displayed a more erratic pattern. The ratio ranged from as low as 0.29 in June 2023 to a high of 0.44 in March 2022 and June 2022. This ratio signifies the company's ability to generate sales revenue in relation to its total assets. The significant drop in the total asset turnover ratio in 2023 may indicate challenges in effectively utilizing its total assets to generate revenue.

Overall, the analysis of Amgen Inc's long-term activity ratios underscores the importance of efficiently managing both fixed and total assets to ensure optimal revenue generation and business performance. The company may need to focus on improving asset utilization to enhance its operational efficiency and financial health in the long term.