Amgen Inc (AMGN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 11,973,000 | 10,944,000 | 7,629,000 | 7,989,000 | 6,266,000 |
| Short-term investments | US$ in thousands | — | 10,944,000 | 1,676,000 | 48,000 | 4,381,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 23,099,000 | 18,392,000 | 15,687,000 | 12,184,000 | 11,653,000 |
| Quick ratio | 0.52 | 1.19 | 0.59 | 0.66 | 0.91 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($11,973,000K
+ $—K
+ $—K)
÷ $23,099,000K
= 0.52
The quick ratio of Amgen Inc, a biotechnology company, has shown fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at 0.91, indicating that the company had $0.91 of liquid assets available to cover each dollar of current liabilities. However, this ratio decreased to 0.66 by December 31, 2021, suggesting a potential liquidity challenge.
In the following year, the quick ratio further declined to 0.59 by December 31, 2022, signaling a decrease in the company's ability to meet short-term obligations with its most liquid assets. This trend reversed in 2023, with the quick ratio improving significantly to 1.19, indicating a healthier liquidity position where the company had more than enough liquid assets to cover its current liabilities.
Nevertheless, by December 31, 2024, the quick ratio dropped to 0.52, potentially raising concerns about Amgen's short-term liquidity position. Overall, the fluctuating quick ratio of Amgen Inc over the years suggests varying degrees of liquidity risk and underscores the importance of monitoring the company's ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2024