Amgen Inc (AMGN)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	7,897,000	8,856,000	9,495,000	8,987,000	9,566,000	9,640,000	9,358,000	8,010,000	7,639,000	7,343,000	7,418,000	8,913,000	9,139,000	9,179,000	9,202,000	9,557,000	9,674,000	10,008,000	9,855,000	10,009,000
Interest expense (ttm)	US$ in thousands	2,875,000	2,469,000	2,078,000	1,654,000	1,406,000	1,326,000	1,254,000	1,207,000	1,197,000	1,180,000	1,186,000	1,201,000	1,262,000	1,245,000	1,256,000	1,292,000	1,289,000	1,340,000	1,382,000	1,397,000
Interest coverage		2.75	3.59	4.57	5.43	6.80	7.27	7.46	6.64	6.38	6.22	6.25	7.42	7.24	7.37	7.33	7.40	7.51	7.47	7.13	7.16

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,897,000K ÷ $2,875,000K
= 2.75

AMGEN Inc.'s interest coverage ratio, as seen from the data provided, has shown a general decreasing trend over the recent quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

In Q4 2022, AMGEN had the highest interest coverage ratio of 6.80. Subsequently, the ratio has been on a downward trend, with the most recent ratio in Q4 2023 at 2.75. This decreasing trend suggests a potential decrease in the company's ability to cover its interest obligations with its operating income.

It is important for investors and creditors to closely monitor the interest coverage ratio, as a declining ratio could indicate financial distress or increased leverage. AMGEN Inc. should focus on improving its operating performance to ensure it can meet its interest payments comfortably in the future.