Amgen Inc (AMGN)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 25,976,000 | 18,426,000 | 18,462,000 | 18,381,000 | 18,649,000 | 51,099,000 | 51,147,000 | 51,407,000 | 51,365,000 | 25,471,000 | 25,484,000 | 25,164,000 | 25,424,000 | 24,987,000 | 24,301,000 | 23,966,000 | 23,362,000 | 23,395,000 | 23,562,000 | 23,750,000 |
| Receivables | US$ in thousands | 7,942,000 | 6,145,000 | 5,830,000 | 5,736,000 | 6,392,000 | 5,326,000 | 5,327,000 | 5,077,000 | 5,839,000 | 4,765,000 | 4,479,000 | 4,423,000 | 5,324,000 | 4,094,000 | 5,366,000 | 5,009,000 | 4,652,000 | 3,606,000 | 3,801,000 | 3,771,000 |
| Receivables turnover | 3.27 | 3.00 | 3.17 | 3.20 | 2.92 | 9.59 | 9.60 | 10.13 | 8.80 | 5.35 | 5.69 | 5.69 | 4.78 | 6.10 | 4.53 | 4.78 | 5.02 | 6.49 | 6.20 | 6.30 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $25,976,000K ÷ $7,942,000K
= 3.27
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. A higher ratio indicates that the company is collecting its accounts receivable more quickly.
Analyzing AMGEN Inc.'s receivables turnover over the past eight quarters, we can see fluctuation in the ratio. In Q1 2022, the ratio was at its highest at 5.18, showing that the company was able to convert its accounts receivable into cash 5.18 times during that period. However, the ratio has been gradually declining since then, reaching 3.79 in Q4 2023.
The decreasing trend in the receivables turnover ratio may raise concerns about the company's ability to efficiently collect payments from its customers. AMGEN Inc. may need to review its credit policies, collection procedures, or customer base to improve its receivables turnover and enhance cash flow.
It is crucial for stakeholders to closely monitor the trend in the receivables turnover ratio over time to assess the company's liquidity and financial health. Further analysis and comparison with industry benchmarks can provide additional insights into AMGEN Inc.'s receivables management effectiveness.
Peer comparison
Dec 31, 2023