Amgen Inc (AMGN)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 97,154,000 | 90,534,000 | 90,269,000 | 88,720,000 | 65,121,000 | 63,700,000 | 59,294,000 | 59,196,000 | 61,165,000 | 64,993,000 | 59,773,000 | 62,539,000 | 62,948,000 | 64,637,000 | 65,011,000 | 61,669,000 | 59,707,000 | 59,535,000 | 59,373,000 | 63,997,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 9,673,000 | 10,927,000 | 10,794,000 | 10,832,000 |
| Financial leverage ratio | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | 9.13 | 7.91 | 7.25 | 6.70 | 6.69 | 5.90 | 6.10 | 6.50 | 6.17 | 5.45 | 5.50 | 5.91 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $97,154,000K ÷ $6,232,000K
= 15.59
AMGEN Inc.'s financial leverage ratio has exhibited fluctuations over the past eight quarters. The ratio was at its lowest in Q3 2023 at 11.83 and gradually increased to 15.59 in Q4 2023. This indicates that the company relied more on debt financing in Q4 2023 compared to the previous quarter. However, it is noteworthy that the financial leverage ratio in Q4 2023 is still lower than the ratios recorded in Q1 and Q2 2023, suggesting improved leverage levels in the more recent period.
When comparing the current ratio to the same quarter in the previous year (Q4 2022), there has been a decrease from 17.79 to 15.59, signifying a reduction in the company's leverage position. Furthermore, the significant decline in the financial leverage ratio from Q1 2022 (64.62) to Q2 2022 (24.51) indicates a substantial decrease in debt usage or an increase in equity in the capital structure during that period.
Overall, it appears that AMGEN Inc. has been managing its financial leverage effectively, as indicated by the varying ratios over the past eight quarters. Monitoring the trend of this ratio can provide valuable insights into the company's capital structure and financial risk management strategies.
Peer comparison
Dec 31, 2023