Amgen Inc (AMGN)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	10,944,000	34,700,000	34,248,000	31,600,000	7,629,000	9,502,000	5,203,000	6,528,000	7,989,000	11,969,000	6,630,000	6,112,000	6,266,000	9,087,000	9,145,000	7,687,000	6,037,000	11,415,000	5,525,000	7,358,000
Short-term investments	US$ in thousands	4,514,000	—	4,091,000	4,834,000	2,491,000	2,743,000	2,472,000	659,000	879,000	1,817,000	1,855,000	4,848,000	4,858,000	3,649,000	2,573,000	545,000	3,177,000	9,715,000	16,520,000	19,189,000
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
Cash ratio		0.84	2.05	2.24	2.56	0.65	0.85	0.61	0.56	0.73	0.93	0.58	0.85	0.95	1.28	1.11	0.70	0.72	1.97	2.08	2.09

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 exhibited fluctuations over the past eight quarters. In Q4 2023, the cash ratio decreased significantly to 0.73 compared to the previous quarter where it was at 2.20. This indicates a decline in the company's ability to cover its short-term liabilities solely with cash and cash equivalents.

While there is variability in the cash ratio from quarter to quarter, it generally trends above 1, suggesting that AMGEN Inc. has had more than enough liquid assets to cover its short-term obligations. Q2 and Q3 of 2023 saw particularly strong cash ratios of 2.14 and 2.20, respectively, indicating a robust liquidity position during these periods.

Overall, AMGEN Inc. has maintained a relatively healthy cash ratio, with occasional fluctuations, indicating a solid ability to meet its short-term financial obligations with its available cash reserves. It is noteworthy that the company should continue to monitor and manage its cash position effectively to ensure continued liquidity and financial stability.