Amgen Inc (AMGN)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	8,079,000	7,030,000	7,446,000	7,741,000	8,254,000	36,861,000	36,856,000	36,909,000	36,895,000	12,947,000	14,636,000	16,203,000	18,081,000	17,972,000	17,856,000	17,998,000	17,848,000	18,125,000	18,171,000	18,264,000
Revenue (ttm)	US$ in thousands	25,976,000	18,426,000	18,462,000	18,381,000	18,649,000	51,099,000	51,147,000	51,407,000	51,365,000	25,471,000	25,484,000	25,164,000	25,424,000	24,987,000	24,301,000	23,966,000	23,362,000	23,395,000	23,562,000	23,750,000
Gross profit margin		31.10%	38.15%	40.33%	42.11%	44.26%	72.14%	72.06%	71.80%	71.83%	50.83%	57.43%	64.39%	71.12%	71.93%	73.48%	75.10%	76.40%	77.47%	77.12%	76.90%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $8,079,000K ÷ $25,976,000K
= 31.10%

The gross profit margin of AMGEN Inc. has exhibited a gradual decline over the past four quarters, decreasing from 75.66% in Q4 2022 to 70.02% in Q4 2023. This trend indicates a potential decrease in the profitability of the company's core operations, as the gross profit margin represents the percentage of revenue that exceeds the cost of goods sold. The company may be facing challenges such as increased production costs, pricing pressures, or changes in product mix that are impacting its ability to generate profits from its core business activities. It is important for AMGEN Inc. to closely monitor and address the factors contributing to this decline in order to maintain sustainable profitability in the future.