Amgen Inc (AMGN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,764,000 | 7,897,000 | 8,832,000 | 9,144,000 | 9,328,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,877,000 | 6,232,000 | 3,661,000 | 6,700,000 | 9,409,000 |
| Return on total capital | 132.11% | 126.72% | 241.25% | 136.48% | 99.14% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,764,000K ÷ ($—K + $5,877,000K)
= 132.11%
Amgen Inc's return on total capital has displayed significant fluctuations over the years. The return on total capital was 99.14% as of December 31, 2020, which increased to 136.48% by December 31, 2021. Subsequently, there was a substantial surge to 241.25% by December 31, 2022, indicating a sharp improvement in capital efficiency.
However, the return on total capital dropped to 126.72% by December 31, 2023, and further declined to 132.11% by December 31, 2024. Despite the fluctuations, Amgen Inc's return on total capital remains relatively high, suggesting the company effectively utilizes its capital to generate profits. Additional analysis and comparison with industry peers would provide more insights into the company's performance and capital allocation strategies.
Peer comparison
Dec 31, 2024