Amgen Inc (AMGN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,764,000 | 6,903,000 | 5,714,000 | 6,773,000 | 10,002,000 | 11,537,000 | 11,629,000 | 11,144,000 | 9,649,000 | 9,801,000 | 9,388,000 | 9,635,000 | 9,335,000 | 9,244,000 | 9,330,000 | 9,230,000 | 9,395,000 | 9,415,000 | 9,438,000 | 9,793,000 |
| Interest expense (ttm) | US$ in thousands | 3,155,000 | 3,229,000 | 3,212,000 | 3,156,000 | 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 |
| Interest coverage | 2.46 | 2.14 | 1.78 | 2.15 | 3.48 | 4.67 | 5.60 | 6.74 | 6.86 | 7.39 | 7.49 | 7.98 | 7.80 | 7.83 | 7.87 | 7.69 | 7.44 | 7.56 | 7.51 | 7.58 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,764,000K ÷ $3,155,000K
= 2.46
The interest coverage ratio for Amgen Inc has shown a steady decline over the past few years, starting at around 7.58 in March 2020 and gradually decreasing to 2.46 by December 2024. This trend indicates that the company's ability to cover its interest expense with operating income has weakened over time.
The decreasing interest coverage ratio could suggest potential financial risk for Amgen Inc, as a lower ratio indicates a higher proportion of earnings being consumed by interest payments. This could potentially hinder the company's ability to meet its debt obligations in the long run.
It is important for stakeholders and investors to closely monitor this trend and assess the company's overall financial health and ability to manage its debt levels effectively. A declining interest coverage ratio may raise concerns about the company's financial stability and its capacity to generate sufficient cash flow to meet its debt obligations.
Peer comparison
Dec 31, 2024