Amgen Inc (AMGN)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.91	0.91	0.83	0.78	0.74

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $63,170,000K ÷ ($63,170,000K + $6,232,000K)
= 0.91

The debt-to-capital ratio of AMGEN Inc. has shown an increasing trend over the past five years, indicating a higher reliance on debt financing relative to the total capital structure of the company. As of December 31, 2023, the ratio stood at 0.91, unchanged from the previous year. This level suggests that approximately 91% of the company's capital structure is funded by debt, while the remaining 9% is financed through equity.

The steady increase in the debt-to-capital ratio from 0.76 in 2019 to 0.91 in 2023 may raise concerns about the company's financial risk and leverage. A higher debt-to-capital ratio implies a higher level of financial risk due to the increased interest payments and potential difficulties in meeting debt obligations. It also indicates that the company may have limited flexibility in managing its financial obligations and capital structure.

AMGEN Inc. should carefully monitor its debt levels and consider strategies to balance its capital structure to maintain a healthy financial position and mitigate risks associated with high leverage. Management may need to evaluate various alternatives, such as optimizing debt levels, refinancing debt at lower rates, or increasing equity financing, to achieve a more sustainable capital structure.