Amgen Inc (AMGN)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,897,000 | 8,856,000 | 9,495,000 | 8,987,000 | 9,566,000 | 9,640,000 | 9,358,000 | 8,010,000 | 7,639,000 | 7,343,000 | 7,418,000 | 8,913,000 | 9,139,000 | 9,179,000 | 9,202,000 | 9,557,000 | 9,674,000 | 10,008,000 | 9,855,000 | 10,009,000 |
| Total assets | US$ in thousands | 97,154,000 | 90,534,000 | 90,269,000 | 88,720,000 | 65,121,000 | 63,700,000 | 59,294,000 | 59,196,000 | 61,165,000 | 64,993,000 | 59,773,000 | 62,539,000 | 62,948,000 | 64,637,000 | 65,011,000 | 61,669,000 | 59,707,000 | 59,535,000 | 59,373,000 | 63,997,000 |
| Operating ROA | 8.13% | 9.78% | 10.52% | 10.13% | 14.69% | 15.13% | 15.78% | 13.53% | 12.49% | 11.30% | 12.41% | 14.25% | 14.52% | 14.20% | 14.15% | 15.50% | 16.20% | 16.81% | 16.60% | 15.64% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $7,897,000K ÷ $97,154,000K
= 8.13%
AMGEN Inc.'s operating return on assets (operating ROA) has shown a general declining trend over the past eight quarters, from a peak of 16.68% in Q2 2022 to 8.13% in Q4 2023. This suggests a decrease in the company's ability to generate operating income from its assets. The average operating ROA over this period is approximately 12.19%.
The decrease in operating ROA could indicate inefficiencies in the utilization of the company's assets to generate operating profits. It may signal challenges in controlling operating costs or declining revenue generation relative to assets employed.
It's important for stakeholders to monitor this trend closely to assess if it is a temporary fluctuation or a more structural issue impacting the company's profitability and operational efficiency. Further analysis of the company's financial performance and operational activities would be necessary to understand the drivers behind the declining operating ROA and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023