Amgen Inc (AMGN)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,717,000 | 6,552,000 | 5,893,000 | 7,264,000 | 7,842,000 |
| Total stockholders’ equity | US$ in thousands | 6,232,000 | 3,661,000 | 6,700,000 | 9,409,000 | 9,673,000 |
| ROE | 107.78% | 178.97% | 87.96% | 77.20% | 81.07% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $6,717,000K ÷ $6,232,000K
= 107.78%
Amgen Inc.'s return on equity (ROE) has displayed fluctuations over the past five years. In 2023, the ROE stood at 107.78%, declining from the previous year's value of 178.97%. This indicates a substantial drop in the company's ability to generate profits from shareholders' equity.
Despite the decrease in 2023, the ROE remains historically higher compared to 2020 and 2019 when it was at 77.20% and 81.07%, respectively. It is worth noting that the 2022 ROE was notably the highest over the five-year period at 178.97%, reflecting a peak performance in generating profits from shareholder equity.
Overall, Amgen Inc.'s ROE has shown variability, potentially reflecting varying levels of profitability and efficiency in utilizing shareholder equity for generating earnings. Investors and stakeholders may further investigate the reasons behind these fluctuations to gain insights into the company's financial performance and strategic decisions.
Peer comparison
Dec 31, 2023