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.
Peer comparison
Dec 31, 2023