Amgen Inc (AMGN)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,090,000 | 4,230,000 | 3,130,000 | 3,763,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 5,877,000 | 7,527,000 | 5,925,000 | 5,022,000 | 6,232,000 | 7,656,000 | 6,781,000 | 5,348,000 | 3,661,000 | 3,653,000 | 2,419,000 | 916,000 | 6,700,000 | 8,217,000 | 8,247,000 | 9,334,000 | 9,409,000 | 10,959,000 | 10,659,000 | 9,485,000 |
| ROE | 69.59% | 56.20% | 52.83% | 74.93% | 107.78% | 98.82% | 117.67% | 148.04% | 178.97% | 187.11% | 271.85% | 624.78% | 87.96% | 68.26% | 69.67% | 75.91% | 77.20% | 67.09% | 68.48% | 80.92% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,090,000K ÷ $5,877,000K
= 69.59%
Amgen Inc's return on equity (ROE) has shown fluctuations over the years based on the provided data. From March 31, 2020, to December 31, 2021, the ROE remained relatively high and stable, ranging from 67.09% to 87.96%. This indicates that the company was effectively generating profits from shareholders' equity during this period.
However, there was a significant spike in ROE as of March 31, 2022, reaching an exceptionally high value of 624.78%. Such a drastic increase may require further investigation to determine the cause, whether it was due to extraordinary profits or changes in the capital structure.
Subsequently, the ROE started to decline from the peak value, dropping to 52.83% by June 30, 2024. This downward trend indicates a potential decrease in the efficiency of utilizing shareholder funds to generate profits.
Overall, while Amgen Inc has experienced periods of high profitability as reflected in its ROE, the recent decline suggests a need for management attention to sustain or improve the company's return on equity in the future.
Peer comparison
Dec 31, 2024