Amgen Inc (AMGN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,897,000 | 9,566,000 | 7,639,000 | 9,139,000 | 9,674,000 |
| Long-term debt | US$ in thousands | 63,170,000 | 37,354,000 | 33,222,000 | 32,895,000 | 26,950,000 |
| Total stockholders’ equity | US$ in thousands | 6,232,000 | 3,661,000 | 6,700,000 | 9,409,000 | 9,673,000 |
| Return on total capital | 11.38% | 23.32% | 19.13% | 21.60% | 26.42% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,897,000K ÷ ($63,170,000K + $6,232,000K)
= 11.38%
AMGEN Inc.'s return on total capital has exhibited some fluctuations over the past five years. The return on total capital stood at 11.15% at the end of 2023, reflecting a decline from the previous year's figure of 22.45%. This decrease indicates a reduced efficiency in generating profits relative to the total capital employed in the business.
The company's return on total capital was relatively stable between 2021 and 2022, ranging between 22.45% and 22.85%. This suggests that AMGEN was able to consistently generate returns that outpaced the total capital invested in the business during this period.
In 2020 and 2019, AMGEN Inc. recorded return on total capital figures of 21.56% and 24.44%, respectively. These results indicate solid performance in utilizing total capital to generate profits, particularly in 2019 where the return on total capital peaked at 24.44%.
Overall, AMGEN Inc.'s return on total capital demonstrates variability across the years, with the company achieving higher efficiency in capital utilization in certain periods compared to others. It is essential for investors and stakeholders to monitor this metric closely to assess the company's ability to generate profits relative to the capital invested.
Peer comparison
Dec 31, 2023