Amgen Inc (AMGN)

Working capital 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
Total current assets	US$ in thousands	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	18,440,000	31,051,000	30,746,000	35,151,000
Total current liabilities	US$ in thousands	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	12,835,000	10,737,000	10,622,000	12,706,000
Working capital turnover		2.18	0.58	0.61	0.60	2.87	5.25	7.63	9.12	7.13	2.67	5.65	2.99	2.68	1.97	1.96	3.43	4.17	1.15	1.17	1.06

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $25,976,000K ÷ ($30,332,000K – $18,392,000K)
= 2.18

The working capital turnover ratio for AMGEN Inc. fluctuated over the past eight quarters, with Q4 2022 showing the highest ratio of 4.05 and Q3 2023 the lowest at 0.85. This ratio signifies how efficiently the company is utilizing its working capital to generate revenue. A high ratio indicates effective management of working capital, enabling the company to generate more revenue with less working capital. Conversely, a low ratio suggests inefficient utilization of working capital, potentially leading to reduced revenue generation from the capital invested.

The significant fluctuations observed in the working capital turnover ratio may reflect changes in the company's operating efficiency, sales, or inventory management strategies. The substantial decrease from Q4 2022 to Q3 2023 indicates a notable decline in the company's ability to generate revenue relative to its working capital during that period. Further analysis and investigation into the underlying factors influencing these fluctuations would be necessary to understand the dynamics driving the changes in AMGEN Inc.'s working capital turnover ratio.