Amgen Inc (AMGN)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 97,154,000 | 65,121,000 | 61,165,000 | 62,948,000 | 59,707,000 |
| Operating ROA | 8.13% | 14.69% | 12.49% | 14.52% | 16.20% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $7,897,000K ÷ $97,154,000K
= 8.13%
Operating return on assets (operating ROA) for AMGEN Inc. has shown a declining trend over the past five years. The operating ROA was 16.20% in 2019, decreased to 14.52% in 2020, further declined to 14.95% in 2021, and dropped to 14.69% in 2022. In 2023, the operating ROA decreased notably to 8.13%, indicating a significant decrease in the company's ability to generate operating income from its assets.
This declining trend in operating ROA suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate operating income. It could be an indication of decreasing profitability relative to the size of its asset base. AMGEN Inc. may need to assess its operational efficiency, asset utilization, and cost management strategies to improve its operating ROA in the future.
Peer comparison
Dec 31, 2023