Amgen Inc (AMGN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 61.53% | 70.02% | 75.66% | 75.16% | 75.77% |
| Operating profit margin | 21.71% | 28.01% | 20.27% | 23.11% | 22.79% |
| Pretax margin | 13.79% | 27.86% | 27.91% | 25.79% | 31.99% |
| Net profit margin | 12.24% | 23.83% | 24.89% | 22.68% | 28.57% |
Amgen Inc's profitability ratios exhibit certain trends over the five-year period from 2020 to 2024.
1. Gross Profit Margin:
- The gross profit margin remained relatively stable, ranging from 75.77% in 2020 to 61.53% in 2024. This indicates that Amgen's ability to generate revenue from its core operations remained strong, albeit with a slight decrease in the later years.
2. Operating Profit Margin:
- The operating profit margin fluctuated over the period, with a high of 23.11% in 2021 and a low of 20.27% in 2022. The margin improved in 2023 but decreased again in 2024 to 21.71%. This suggests that Amgen managed its operating expenses and operational efficiency effectively, with some variability.
3. Pretax Margin:
- The pretax margin experienced significant fluctuations, with a peak of 31.99% in 2020 and a notable decline to 13.79% in 2024. This may indicate varying levels of non-operating income or expenses impacting the company's profitability over the years.
4. Net Profit Margin:
- The net profit margin also displayed variability, with a high of 28.57% in 2020 and a low of 12.24% in 2024. This indicates the company's ability to manage its overall expenses and taxes, resulting in the bottom line profit earned for each dollar of revenue generated.
Overall, Amgen's profitability ratios reflect a mix of stability and fluctuation, highlighting the company's performance in managing costs, generating revenues, and ultimately delivering profits to its shareholders. It would be important for investors and analysts to closely monitor these ratios in the future to assess the company's financial health and performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.90% | 8.13% | 8.19% | 9.82% | 9.20% |
| Return on assets (ROA) | 4.45% | 6.91% | 10.06% | 9.63% | 11.54% |
| Return on total capital | 132.11% | 126.72% | 241.25% | 136.48% | 99.14% |
| Return on equity (ROE) | 69.59% | 107.78% | 178.97% | 87.96% | 77.20% |
Amgen Inc's profitability ratios demonstrate fluctuations over the years.
1. Operating return on assets (Operating ROA) remained relatively stable, ranging from 7.90% to 9.82% between December 31, 2020, and December 31, 2024. This indicates the company's ability to generate operating profits from its assets varied slightly but stayed within a narrow band.
2. Return on assets (ROA) experienced declines from 11.54% in December 31, 2020, to 4.45% in December 31, 2024. This downward trend suggests a decrease in the company's overall profitability relative to its total assets.
3. Return on total capital saw significant fluctuations, with a peak at 241.25% on December 31, 2022, and a low of 99.14% on December 31, 2020. This ratio highlights the company's ability to generate returns from both equity and debt capital employed.
4. Return on equity (ROE) also depicted variations, ranging from 69.59% in December 31, 2024, to 178.97% in December 31, 2022. The fluctuation in ROE indicates changes in the company's profitability in relation to shareholders' equity, showing periods of higher and lower returns to equity providers.
Overall, the analysis of Amgen Inc's profitability ratios suggests mixed performance in generating returns for both assets and capital providers, with varying levels of profitability and efficiency across different periods.