Amgen Inc (AMGN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 97,154,000 | 65,121,000 | 61,165,000 | 62,948,000 | 59,707,000 |
| Total stockholders’ equity | US$ in thousands | 6,232,000 | 3,661,000 | 6,700,000 | 9,409,000 | 9,673,000 |
| Financial leverage ratio | 15.59 | 17.79 | 9.13 | 6.69 | 6.17 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $97,154,000K ÷ $6,232,000K
= 15.59
The financial leverage ratio of AMGEN Inc. has fluctuated over the past five years, ranging from a low of 6.17 in 2019 to a high of 17.79 in 2022. This ratio measures the extent to which the company relies on debt to finance its operations and assets.
A high financial leverage ratio suggests that a significant portion of the company's assets are funded by debt rather than equity, which can increase the company's financial risk. On the other hand, a low ratio indicates a lower reliance on debt financing, thereby reducing the risk of financial distress.
The significant increase in the financial leverage ratio from 2019 to 2022 may indicate that AMGEN Inc. took on more debt during this period, possibly to fund growth opportunities or other strategic initiatives. However, the decrease in the ratio from 2022 to 2023 suggests a potential reduction in the company's debt levels, which could improve its financial stability and reduce the risk associated with high debt levels.
Overall, it is important for investors and stakeholders to closely monitor AMGEN Inc.'s financial leverage ratio to assess its financial health and risk profile, as changes in this ratio can impact the company's ability to meet its financial obligations and withstand economic downturns.
Peer comparison
Dec 31, 2023