Amgen Inc (AMGN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 198.65 | 411.08 | 280.90 | 231.08 | 230.71 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 198.65 | 411.08 | 280.90 | 231.08 | 230.71 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 198.65 + — – —
= 198.65
The cash conversion cycle for Amgen Inc has shown some fluctuations over the past five years.
In 2020, the cash conversion cycle was 230.71 days, indicating that it took Amgen approximately 230 days to convert its investments in inventory and accounts receivable into cash.
In 2021, the cash conversion cycle increased slightly to 231.08 days, suggesting a minor delay in the conversion of resources into cash.
The cycle then experienced a significant increase in 2022, reaching 280.90 days, which may indicate extended time periods for inventory turnover and accounts receivable collection.
By 2023, the cash conversion cycle further extended to 411.08 days, signifying a substantial delay in converting investments into cash compared to previous years.
However, in 2024, the cycle reduced significantly to 198.65 days, potentially reflecting improvements in inventory management and accounts receivable collection efficiency.
Overall, the data suggests that Amgen Inc has experienced fluctuations in its cash conversion cycle over the past five years, highlighting varying efficiency levels in managing its working capital and operational cash flows. Further analysis would be needed to determine the underlying reasons behind these fluctuations and to assess the company's overall liquidity management strategies.
Peer comparison
Dec 31, 2024