Amgen Inc (AMGN)
Debt-to-equity 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-equity ratio | 10.14 | 10.20 | 4.96 | 3.50 | 2.79 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $63,170,000K ÷ $6,232,000K
= 10.14
The debt-to-equity ratio of AMGEN Inc. has been on an increasing trend over the past five years. From 3.09 in 2019, the ratio rose to 3.51 in 2020, then further increased to 4.97 in 2021, followed by 10.64 in 2022, and eventually reaching 10.37 in 2023.
This indicates that the company has been relying more heavily on debt to finance its operations and growth as compared to equity. The substantial increase in the debt-to-equity ratio over the years could suggest that AMGEN Inc. is taking on more debt relative to its equity, which may pose higher financial risk and increase the company's leverage. It is important for stakeholders to monitor this trend closely to ensure the company can manage its debt levels effectively and sustainably.
Peer comparison
Dec 31, 2023