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.
Peer comparison
Dec 31, 2023