Amgen Inc (AMGN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,764,000 | 6,903,000 | 5,714,000 | 6,773,000 | 10,002,000 | 11,537,000 | 11,629,000 | 11,144,000 | 9,649,000 | 9,801,000 | 9,388,000 | 9,635,000 | 9,335,000 | 9,244,000 | 9,330,000 | 9,230,000 | 9,395,000 | 9,415,000 | 9,438,000 | 9,793,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 132.11% | 91.71% | 96.44% | 134.87% | 160.49% | 150.69% | 171.49% | 208.38% | 263.56% | 268.30% | 388.09% | 1,051.86% | 139.33% | 112.50% | 113.13% | 98.89% | 99.85% | 85.91% | 88.54% | 103.25% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,764,000K ÷ ($—K + $5,877,000K)
= 132.11%
Amgen Inc's return on total capital has exhibited fluctuating trends over the reported quarters. The ratio started strong in March 2020 at 103.25% and showed a slight decline by June 2020 to 88.54%. Despite this, the company's return on total capital remained relatively stable through the rest of 2020, with values ranging from 85.91% to 99.85%.
In the following year, there was an upward trend in the ratio, reaching a peak of 139.33% by December 2021. The ratio significantly surged in March 2022 to 1,051.86% before gradually declining in subsequent quarters but remaining well above 100%.
By December 2024, the return on total capital stood at 132.11%, reflecting a positive performance. The company's ability to generate returns on its total capital has shown notable variability but overall remained strong and above industry averages throughout the reporting period.
Peer comparison
Dec 31, 2024