Amgen Inc (AMGN)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	11,973,000	10,944,000	7,629,000	7,989,000	6,266,000
Short-term investments	US$ in thousands	—	10,944,000	1,676,000	48,000	4,381,000
Total current liabilities	US$ in thousands	23,099,000	18,392,000	15,687,000	12,184,000	11,653,000
Cash ratio		0.52	1.19	0.59	0.66	0.91

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,973,000K + $—K) ÷ $23,099,000K
= 0.52

The cash ratio of Amgen Inc has shown fluctuations over the years based on the data provided.

As of December 31, 2020, the cash ratio was 0.91, indicating that the company had $0.91 in cash and cash equivalents for every dollar of current liabilities.

By December 31, 2021, the cash ratio decreased to 0.66, suggesting a lower level of liquidity compared to the previous year. This could be a cause for concern as it may indicate a decrease in the company's ability to cover its short-term obligations with available cash.

The cash ratio further declined to 0.59 by December 31, 2022, signaling a continued decrease in liquidity and a potential strain on the company's ability to meet its short-term financial obligations.

However, by December 31, 2023, the cash ratio increased significantly to 1.19, which is a positive sign indicating an improvement in liquidity. This may suggest that the company has built up a stronger cash position relative to its current liabilities.

Unfortunately, the cash ratio dropped again to 0.52 by December 31, 2024, showing a decline in liquidity and raising concerns about the company's ability to cover its short-term obligations with available cash.

Overall, the fluctuating trend in Amgen Inc's cash ratio indicates varying levels of liquidity over the years, with potential implications for the company's financial health and ability to meet its short-term financial obligations.