Amgen Inc (AMGN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 33,424,000 | 32,534,000 | 30,934,000 | 29,532,000 | 28,190,000 | 26,833,000 | 26,582,000 | 26,190,000 | 26,323,000 | 26,330,000 | 26,384,000 | 26,316,000 | 25,979,000 | 25,767,000 | 25,484,000 | 25,164,000 | 25,424,000 | 24,987,000 | 24,301,000 | 23,966,000 |
| Total current assets | US$ in thousands | 29,030,000 | 26,766,000 | 27,206,000 | 28,029,000 | 30,332,000 | 48,477,000 | 47,380,000 | 44,703,000 | 22,186,000 | 24,062,000 | 19,322,000 | 18,520,000 | 19,385,000 | 24,380,000 | 19,099,000 | 21,299,000 | 21,144,000 | 22,661,000 | 22,895,000 | 18,813,000 |
| Total current liabilities | US$ in thousands | 23,099,000 | 20,312,000 | 21,517,000 | 19,714,000 | 18,392,000 | 16,954,000 | 17,097,000 | 14,215,000 | 15,687,000 | 14,331,000 | 12,618,000 | 12,886,000 | 12,184,000 | 14,842,000 | 14,585,000 | 12,869,000 | 11,653,000 | 9,953,000 | 10,523,000 | 11,827,000 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $33,424,000K ÷ ($29,030,000K – $23,099,000K)
= 5.64
The working capital turnover ratio is a measure of how efficiently a company is utilizing its working capital to generate revenue. It is calculated by dividing net sales by average working capital. A higher ratio indicates that the company is efficiently using its working capital to generate sales.
Looking at the trend in Amgen Inc's working capital turnover ratio from March 2020 to December 2024, we can observe fluctuations in the ratio. The ratio has shown variability over the periods, ranging from a low of 0.85 in September 2023 to a high of 5.65 in June 2021.
In the initial periods, the working capital turnover ratio was relatively stable around 2 to 3, indicating a moderate level of efficiency in converting working capital into sales. From June 2021 to December 2024, there was a significant increase in the ratio, reaching highs of 5.44 and 5.64 in June 2024 and December 2024, respectively. This suggests that during these periods, the company was able to generate higher sales revenue relative to its working capital.
However, in the most recent period ending March 2024, there was a notable decline in the working capital turnover ratio to 3.55, indicating a potential decrease in efficiency in utilizing working capital to generate sales.
In conclusion, while Amgen Inc's working capital turnover ratio has shown fluctuations over the analyzed period, the company has demonstrated varying levels of efficiency in converting working capital into sales revenue. It will be essential for the company to monitor and manage its working capital effectively to ensure optimal performance in the future.
Peer comparison
Dec 31, 2024