Amgen Inc (AMGN)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,897,000 | 8,856,000 | 9,495,000 | 8,987,000 | 9,566,000 | 9,640,000 | 9,358,000 | 8,010,000 | 7,639,000 | 7,343,000 | 7,418,000 | 8,913,000 | 9,139,000 | 9,179,000 | 9,202,000 | 9,557,000 | 9,674,000 | 10,008,000 | 9,855,000 | 10,009,000 |
| Long-term debt | US$ in thousands | 63,170,000 | 59,040,000 | 59,377,000 | 60,761,000 | 37,354,000 | 37,161,000 | 35,705,000 | 36,010,000 | 33,222,000 | 33,291,000 | 28,458,000 | 31,129,000 | 32,895,000 | 34,196,000 | 34,133,000 | 30,008,000 | 26,950,000 | 27,742,000 | 27,798,000 | 29,319,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 9,673,000 | 10,927,000 | 10,794,000 | 10,832,000 |
| Return on total capital | 11.38% | 13.28% | 14.35% | 13.59% | 23.32% | 23.62% | 24.55% | 21.69% | 19.13% | 17.69% | 20.21% | 22.03% | 21.60% | 20.33% | 20.54% | 24.20% | 26.42% | 25.88% | 25.54% | 24.93% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (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 been fairly consistent over the past eight quarters, ranging between 11.15% and 25.19%. The trend shows a general decrease from 22.45% in Q4 2022 to 13.42% in Q1 2023, followed by a slight increase in the subsequent quarters. This indicates that the company's ability to generate returns relative to its total capital fluctuated during this period. The lower return in Q1 2023 compared to the previous quarter could be a point of concern and may warrant further investigation into the company's capital management and operational efficiency. Overall, AMGEN Inc.'s return on total capital reflects its performance in utilizing its total capital to generate profits for its shareholders.
Peer comparison
Dec 31, 2023