Amgen Inc (AMGN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,090,000 | 6,717,000 | 6,552,000 | 5,893,000 | 7,264,000 |
| Total assets | US$ in thousands | 91,839,000 | 97,154,000 | 65,121,000 | 61,165,000 | 62,948,000 |
| ROA | 4.45% | 6.91% | 10.06% | 9.63% | 11.54% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,090,000K ÷ $91,839,000K
= 4.45%
The return on assets (ROA) for Amgen Inc has exhibited fluctuations over the past five years. As of December 31, 2020, the ROA stood at 11.54%, indicating that the company generated $0.1154 in net income for every dollar of assets held. Over the next year, the ROA decreased to 9.63%, suggesting a slight reduction in the efficiency of utilizing its assets to generate profit.
By December 31, 2022, the ROA improved to 10.06%, reflecting a better performance in converting assets into earnings. However, in the following year, the ROA declined significantly to 6.91%, signaling potential challenges in generating income relative to the size of its asset base.
As of December 31, 2024, the ROA decreased further to 4.45%, marking a notable reduction in the company's ability to generate profits from its assets. The declining trend in ROA may raise concerns about Amgen Inc's asset management efficiency and overall profitability in the coming periods.
Peer comparison
Dec 31, 2024