Amgen Inc (AMGN)

Liquidity ratios

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
Current ratio 1.65 2.86 2.77 3.14 1.41 1.68 1.53 1.44 1.59 1.64 1.31 1.66 1.81 2.28 2.18 1.59 1.44 2.89 2.89 2.77
Quick ratio 1.27 2.41 2.58 2.97 1.05 1.23 1.03 0.95 1.21 1.25 0.89 1.20 1.41 1.69 1.62 1.12 1.08 2.30 2.43 2.39
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

Based on the data provided, we can analyze AMGEN Inc.'s liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has shown fluctuation but generally has been above 1, indicating that AMGEN Inc. has had sufficient current assets to cover its current liabilities. The ratio has ranged from 1.41 to 3.14, with the highest value reported in Q1 2023.

The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has followed a similar trend as the current ratio. It has ranged from 1.10 to 2.79, showing that the company has maintained a comfortable level of liquid assets to cover immediate liabilities. The highest quick ratio was also reported in Q1 2023.

The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has fluctuated as well but has generally remained above 0.70. This suggests that AMGEN Inc. has had a solid level of cash reserves relative to its current liabilities, with the ratio ranging from 0.70 to 2.39. The highest cash ratio was reported in Q1 2023.

Overall, the liquidity ratios of AMGEN Inc. indicate that the company has managed its short-term obligations effectively and maintained a strong liquidity position over the past eight quarters, with an improvement in liquidity ratios seen in the most recent quarters of 2023.

See also:

Amgen Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 273.28 208.57 206.67 205.79 210.13 129.13 122.25 111.78 110.10 155.16 159.64 170.91 199.31 204.50 232.94 219.64 219.17 211.26 206.14 186.03

The cash conversion cycle of AMGEN Inc. has shown some variability over the past eight quarters. In Q4 2023, the company's cash conversion cycle reached 438.74 days, marking a significant increase from the previous quarter's level of 272.53 days. This indicates that AMGEN took longer to convert its investments in inventory and other resources into cash during this period.

Looking at the trend over the past year, we can observe fluctuations in the cash conversion cycle, with peaks and troughs occurring across different quarters. From Q1 2022 to Q4 2023, there have been fluctuations in the duration of the company's cash conversion cycle, ranging from 238.68 days to 438.74 days.

It is important to analyze the components of the cash conversion cycle, including the days inventory outstanding, days sales outstanding, and days payables outstanding, to identify areas where improvements can be made to optimize working capital management. Overall, a higher cash conversion cycle implies that the company takes longer to convert its investments into cash, potentially leading to liquidity challenges or inefficiencies in operations. AMGEN Inc. may benefit from strategies to shorten its cash conversion cycle to improve its cash flow and operational efficiency.