Amgen Inc (AMGN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 10,944,000 | 7,629,000 | 7,989,000 | 6,266,000 | 6,037,000 |
| Short-term investments | US$ in thousands | 4,514,000 | 2,491,000 | 879,000 | 4,858,000 | 3,177,000 |
| Total current liabilities | US$ in thousands | 18,392,000 | 15,687,000 | 12,184,000 | 11,653,000 | 12,835,000 |
| Cash ratio | 0.84 | 0.65 | 0.73 | 0.95 | 0.72 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,944,000K
+ $4,514,000K)
÷ $18,392,000K
= 0.84
The cash ratio of AMGEN Inc. has fluctuated over the past five years, ranging from 0.73 in 2023 to 1.07 in 2020. The cash ratio measures the company's ability to cover its short-term obligations using only its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term liabilities.
The decrease in the cash ratio from 2020 to 2023 suggests that AMGEN Inc. may have been utilizing its cash reserves for investments, acquisitions, or other operational activities. A lower cash ratio may also indicate that the company is carrying more short-term liabilities relative to its cash holdings.
Overall, while AMGEN Inc.'s cash ratio has slightly decreased in recent years, it is important to consider other financial ratios and factors to gain a comprehensive understanding of the company's liquidity and financial health.
Peer comparison
Dec 31, 2023