Amgen Inc (AMGN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 25,568,000 | 51,272,000 | 50,799,000 | 25,424,000 | 23,362,000 |
| Total current assets | US$ in thousands | 30,332,000 | 22,186,000 | 19,385,000 | 21,144,000 | 18,440,000 |
| Total current liabilities | US$ in thousands | 18,392,000 | 15,687,000 | 12,184,000 | 11,653,000 | 12,835,000 |
| Working capital turnover | 2.14 | 7.89 | 7.05 | 2.68 | 4.17 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $25,568,000K ÷ ($30,332,000K – $18,392,000K)
= 2.14
AMGEN Inc.'s working capital turnover has exhibited fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally signifies better efficiency in managing working capital.
In 2023, the working capital turnover decreased to 2.36 from 4.05 in 2022, reflecting a decline in the efficiency of working capital utilization. This decrease may be attributed to changes in operational dynamics, market conditions, or internal policies affecting working capital management.
Comparing the data over the five-year period, the working capital turnover ratio ranged from a low of 2.36 in 2023 to a high of 4.17 in 2019. The ratio's variability suggests that AMGEN Inc. has experienced fluctuations in its working capital efficiency over this period, warranting further investigation into the factors influencing this metric.
Overall, a comprehensive assessment of AMGEN Inc.'s working capital turnover trend highlights the importance of monitoring working capital management practices to ensure optimal utilization of resources for revenue generation.
Peer comparison
Dec 31, 2023