Amgen Inc (AMGN)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,897,000 | 9,566,000 | 7,639,000 | 9,139,000 | 9,674,000 |
| Revenue | US$ in thousands | 25,568,000 | 51,272,000 | 50,799,000 | 25,424,000 | 23,362,000 |
| Operating profit margin | 30.89% | 18.66% | 15.04% | 35.95% | 41.41% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $7,897,000K ÷ $25,568,000K
= 30.89%
The operating profit margin of AMGEN Inc. has shown a decreasing trend over the past five years. The margin decreased from 41.41% in 2019 to 28.01% in 2023. This indicates a decline in the company's ability to generate profit from its core operations relative to its revenue. The decreasing trend in operating profit margin could be attributed to various factors such as increasing operating expenses, lower revenue growth, or pricing pressures. It is important for the company to closely monitor and address the factors contributing to the decline in operating profit margin to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023