Amgen Inc (AMGN)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,944,000 | 7,629,000 | 7,989,000 | 6,266,000 | 6,037,000 |
| Short-term investments | US$ in thousands | 4,514,000 | 2,491,000 | 879,000 | 4,858,000 | 3,177,000 |
| Receivables | US$ in thousands | 7,942,000 | 6,392,000 | 5,839,000 | 5,324,000 | 4,652,000 |
| Total current liabilities | US$ in thousands | 18,392,000 | 15,687,000 | 12,184,000 | 11,653,000 | 12,835,000 |
| Quick ratio | 1.27 | 1.05 | 1.21 | 1.41 | 1.08 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,944,000K
+ $4,514,000K
+ $7,942,000K)
÷ $18,392,000K
= 1.27
The quick ratio of AMGEN Inc. has exhibited fluctuations over the past five years. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, stood at 1.13 as of December 31, 2023. This indicates that the company has $1.13 in liquid assets for every $1 of current liabilities, showing a slight improvement compared to the previous year.
Looking at the trend, the quick ratio was relatively stable between 2019 and 2021, ranging from 1.16 to 1.26. However, there was a notable decrease in the quick ratio in 2022 to 1.10, followed by a recovery in 2023 to 1.13. This implies that the company may have faced some challenges in its liquidity position in 2022 but managed to strengthen it in 2023.
Overall, while the quick ratio of AMGEN Inc. has shown variability in recent years, it remained above 1 in each year, indicating that the company has generally been able to cover its short-term obligations with its quick assets. It is important to continue monitoring the quick ratio to assess the company's ongoing liquidity position.
Peer comparison
Dec 31, 2023