Amgen Inc (AMGN)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 6,717,000 | 7,566,000 | 7,979,000 | 7,917,000 | 6,552,000 | 6,835,000 | 6,576,000 | 5,723,000 | 5,893,000 | 5,609,000 | 5,746,000 | 7,085,000 | 7,264,000 | 7,352,000 | 7,299,000 | 7,675,000 | 7,842,000 | 8,067,000 | 7,958,000 | 8,075,000 |
| 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 |
| ROA | 6.91% | 8.36% | 8.84% | 8.92% | 10.06% | 10.73% | 11.09% | 9.67% | 9.63% | 8.63% | 9.61% | 11.33% | 11.54% | 11.37% | 11.23% | 12.45% | 13.13% | 13.55% | 13.40% | 12.62% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $6,717,000K ÷ $97,154,000K
= 6.91%
To analyze AMGEN Inc.'s return on assets (ROA) based on the provided data, we can see a downward trend in ROA over the past eight quarters. The ROA has sequentially decreased from 11.09% in Q2 2022 to 6.91% in Q4 2023. This indicates a decline in the company's ability to generate profits relative to its total assets.
The decline in ROA could be attributed to various factors, such as decreasing profitability, ineffective asset utilization, or increasing total assets without a corresponding increase in net income. It is essential for investors and stakeholders to closely monitor this trend as it may reflect changes in the company's operational efficiency and financial health.
Further analysis, including a comparison with industry peers and examination of the company's financial reports, would provide valuable insights into the reasons behind the declining ROA and help in assessing the overall performance and sustainability of AMGEN Inc.
Peer comparison
Dec 31, 2023