Amgen Inc (AMGN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 15.63 | 15.59 | 17.79 | 9.13 | 6.69 |
Amgen Inc has consistently maintained a very strong solvency position, as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been consistently at 0.00 over the past five years, suggesting that the company has no debt relative to its total assets, capital, and equity during this period.
However, the Financial leverage ratio has shown some fluctuations over the years, indicating changes in the company's financial structure and leverage. Despite this, the ratios are relatively low, with a peak of 17.79 in 2022 and remaining below 16 in the following years. This suggests that Amgen has been able to effectively manage its financial leverage and maintain a healthy balance between debt and equity in its capital structure.
Overall, Amgen Inc's solvency ratios reflect a sound financial health and a conservative approach to managing its debt levels, providing a favorable outlook for its long-term financial stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.46 | 2.75 | 6.28 | 7.64 | 7.39 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest payments.
In the case of Amgen Inc, the interest coverage ratio has shown some fluctuations over the years:
- As of December 31, 2020, the interest coverage ratio was 7.39, indicating that the company was able to cover its interest expenses 7.39 times over with its operating earnings.
- By December 31, 2021, the interest coverage ratio had slightly increased to 7.64, suggesting a modest improvement in the company's ability to cover its interest payments.
- However, the ratio started to decline in the following years, reaching 6.28 as of December 31, 2022, and dropping further to 2.75 by December 31, 2023.
- By December 31, 2024, the interest coverage ratio had fallen even lower to 2.46, which may raise concerns about the company's ability to comfortably meet its interest obligations from its operating income alone.
Overall, while Amgen Inc initially had a relatively strong interest coverage ratio, it experienced a downward trend in subsequent years, reflecting potential challenges in covering interest expenses with its operating earnings. Investors and stakeholders may want to monitor this trend closely to assess the company's financial health and debt repayment capabilities.