Amgen Inc (AMGN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,424,000 | 28,190,000 | 26,323,000 | 25,979,000 | 25,424,000 |
| Total current assets | US$ in thousands | 29,030,000 | 30,332,000 | 22,186,000 | 19,385,000 | 21,144,000 |
| Total current liabilities | US$ in thousands | 23,099,000 | 18,392,000 | 15,687,000 | 12,184,000 | 11,653,000 |
| Working capital turnover | 5.64 | 2.36 | 4.05 | 3.61 | 2.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $33,424,000K ÷ ($29,030,000K – $23,099,000K)
= 5.64
The working capital turnover of Amgen Inc has exhibited fluctuations over the past five years. In 2020, the company's working capital turnover ratio was 2.68, indicating that for every dollar of working capital, the company generated $2.68 of net sales.
The ratio improved significantly in 2021 to 3.61, suggesting that the company efficiently utilized its working capital to generate sales. By 2022, the working capital turnover ratio further increased to 4.05, reflecting an even more effective utilization of working capital.
However, the ratio declined in 2023 to 2.36, indicating a potential decrease in efficiency in converting working capital into sales during that year. Nevertheless, in 2024, the working capital turnover ratio saw a substantial improvement to 5.64, signifying a significant enhancement in the company's ability to generate sales relative to its working capital.
Overall, the trend in Amgen Inc's working capital turnover ratio demonstrates fluctuations year over year, with notable improvements in some years and decreases in others. Further analysis and comparison with industry peers may provide additional insights into the company's working capital management efficiency.
Peer comparison
Dec 31, 2024