Amgen Inc (AMGN)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 5,877,000 | 6,232,000 | 3,661,000 | 6,700,000 | 9,409,000 |
| ROE | 69.59% | 107.78% | 178.97% | 87.96% | 77.20% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,090,000K ÷ $5,877,000K
= 69.59%
Amgen Inc's return on equity (ROE) has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The ROE increased from 77.20% in 2020 to 87.96% in 2021, indicating improved profitability in the initial years. Subsequently, there was a significant spike in ROE to 178.97% by the end of 2022, reflecting a substantial increase in the company's efficiency in generating profits from shareholders' equity.
However, in 2023, the ROE decreased to 107.78%, which may suggest a potential moderation in profitability compared to the previous year. By the end of 2024, the ROE further declined to 69.59%, indicating a decrease in the company's ability to generate profits relative to shareholders' equity.
In summary, while Amgen Inc's ROE exhibited growth and strong performance in certain years, there were fluctuations and a downward trend in the latter years, which may warrant further exploration into the factors impacting the company's profitability and efficiency in utilizing its shareholders' equity.
Peer comparison
Dec 31, 2024