Amgen Inc (AMGN)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.26 | 1.32 | 1.26 | 1.42 | 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 |
| Quick ratio | 0.52 | 0.44 | 0.43 | 0.49 | 1.19 | 2.05 | 2.00 | 2.22 | 0.59 | 0.80 | 0.57 | 0.51 | 0.66 | 0.87 | 0.55 | 0.82 | 0.91 | 1.24 | 1.09 | 0.68 |
| Cash ratio | 0.52 | 0.44 | 0.43 | 0.49 | 1.19 | 2.05 | 2.00 | 2.22 | 0.59 | 0.80 | 0.57 | 0.51 | 0.66 | 0.87 | 0.55 | 0.82 | 0.91 | 1.24 | 1.09 | 0.68 |
Amgen Inc's current ratio has shown some fluctuation over the past few years, ranging from 1.26 to 3.14. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities to cover its short-term obligations. Although the current ratio dipped to 1.31 in June 2021 and 1.26 in June 2024, it improved in the most recent period, reaching 1.42 in March 2024.
The quick ratio, which measures the company's ability to meet short-term liabilities without relying on inventory, has also displayed variability. Amgen Inc's quick ratio ranged from 0.43 to 2.22 during the observed periods. A quick ratio above 1 is considered healthy, indicating that the company can meet its short-term obligations without needing to sell inventory. Notably, the quick ratio spiked to 2.22 in March 2023 but decreased to 0.49 in March 2024.
The cash ratio, which provides insight into a company's ability to cover immediate liabilities with its cash and cash equivalents, followed a similar trend to the quick ratio. It fluctuated between 0.43 and 2.22, surpassing the 1 threshold in most periods. The cash ratio peaked at 2.22 in March 2023 but declined to 0.49 in March 2024.
Overall, while Amgen Inc's liquidity ratios have shown some variability, the company generally maintained a current ratio above 1, indicating its ability to cover short-term debts. However, the fluctuations in the quick ratio and cash ratio suggest that Amgen Inc may need to manage its cash and liquid assets more effectively to ensure consistent liquidity in the future.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 198.65 | 208.99 | 257.02 | 320.64 | 411.08 | 258.89 | 264.56 | 278.60 | 280.90 | 272.28 | 259.80 | 246.75 | 231.08 | 239.30 | 238.98 | 238.95 | 230.71 | 247.43 | 264.95 | 279.17 |
The cash conversion cycle of Amgen Inc has shown some fluctuations over the periods analyzed. The cycle measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In March 2020, the cash conversion cycle for Amgen Inc was 279.17 days, indicating a relatively long cycle. Over the following quarters, the cycle gradually decreased, reaching a low of 198.65 days by December 2024. This downward trend suggests the company was able to manage its inventory and accounts receivable more efficiently, resulting in quicker cash conversion.
However, there were some fluctuations during the period, with occasional increases in the duration of the cash conversion cycle. Notably, there was a significant spike to 411.08 days in December 2023, indicating a temporary delay in converting resources into cash flows.
Overall, the decreasing trend in the cash conversion cycle for Amgen Inc is a positive sign of improved efficiency in managing its working capital and operations. It suggests the company was able to streamline its processes to generate cash more quickly, which can contribute to improved liquidity and financial health.