Amgen Inc (AMGN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 198.65 | 208.99 | 257.02 | 320.64 | 411.08 | 258.89 | 264.56 | 278.60 | 280.90 | 272.28 | 259.80 | 246.75 | 231.08 | 239.30 | 238.98 | 238.95 | 230.71 | 247.43 | 264.95 | 279.17 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 198.65 | 208.99 | 257.02 | 320.64 | 411.08 | 258.89 | 264.56 | 278.60 | 280.90 | 272.28 | 259.80 | 246.75 | 231.08 | 239.30 | 238.98 | 238.95 | 230.71 | 247.43 | 264.95 | 279.17 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 198.65 + — – —
= 198.65
The cash conversion cycle of Amgen Inc has shown fluctuating trends over the specified periods. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2021, the cash conversion cycle decreased steadily from 279.17 days to 231.08 days, indicating an improvement in the efficiency of converting resources to cash. However, by March 31, 2022, the cycle increased to 246.75 days and continued to rise to 280.90 days by December 31, 2022.
In the following periods up to December 31, 2024, the cash conversion cycle fluctuated significantly, ranging from its lowest point of 198.65 days on December 31, 2024, to its highest point of 411.08 days on December 31, 2023. Such fluctuations may indicate changing dynamics in the company's operations, inventory management, and sales conversion efficiency.
A lower cash conversion cycle is generally favorable as it indicates that the company is efficiently managing its working capital and generating cash flows from its core operations. On the other hand, a higher cash conversion cycle may suggest potential issues such as slower inventory turnover or delays in collecting receivables.
Overall, analyzing the changes in the cash conversion cycle can provide insights into Amgen Inc's operational efficiency and cash flow management over the specified periods.
Peer comparison
Dec 31, 2024