Amgen Inc (AMGN)
Quick 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 | 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 |
| Receivables | US$ in thousands | 7,942,000 | 6,145,000 | 5,830,000 | 5,736,000 | 6,392,000 | 5,326,000 | 5,327,000 | 5,077,000 | 5,839,000 | 4,765,000 | 4,479,000 | 4,423,000 | 5,324,000 | 4,094,000 | 5,366,000 | 5,009,000 | 4,652,000 | 3,606,000 | 3,801,000 | 3,771,000 |
| 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 |
| 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 |
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 measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.
Looking at the data provided for AMGEN Inc., we can observe fluctuations in the quick ratio over the past eight quarters. The quick ratio ranged from a low of 1.09 in Q1 2022 to a high of 2.79 in Q1 2023.
In Q1 2023, the quick ratio significantly improved to 2.79, indicating that AMGEN had a substantial amount of liquid assets to cover its current liabilities. This increase in liquidity could be attributed to either an increase in cash and equivalents or a decrease in current liabilities during that quarter.
However, in subsequent quarters, the quick ratio decreased, reflecting a decline in the company's ability to cover its short-term obligations with liquid assets. The quick ratio dropped to 1.13 in Q4 2023, which is below the industry average and suggests a potential vulnerability in meeting short-term obligations.
Overall, while there have been fluctuations in AMGEN's quick ratio over the quarters, the downward trend from Q1 2023 to Q4 2023 raises concerns about the company's liquidity position and ability to address short-term obligations effectively in the near term.
Peer comparison
Dec 31, 2023