Amgen Inc (AMGN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 15.63 | 12.07 | 15.34 | 18.51 | 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 |
Amgen Inc's solvency ratios provide insights into its ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets that are financed by debt. With a consistent ratio of 0.00 across all periods, it suggests that Amgen has not used debt significantly to fund its operations and investments, indicating a strong financial position.
2. Debt-to-capital ratio: This ratio reflects the percentage of a company's capital that is funded by debt. Similarly, with a steady 0.00 ratio over the years, it implies that Amgen relies more on equity rather than debt to finance its operations, further supporting the company's financial stability.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the proportion of debt and equity used to finance a company's assets. Amgen's consistent ratio of 0.00 suggests a conservative approach in financing its operations, maintaining a favorable balance between debt and equity.
4. Financial leverage ratio: This ratio signifies the company's level of debt relative to its equity capital. While the ratio experienced a significant spike in March 2022, peaking at 64.62, it gradually decreased in subsequent periods, indicating a reduction in financial risk and improved solvency. Overall, Amgen's financial leverage has remained relatively stable over time.
In conclusion, based on the solvency ratios analyzed, Amgen Inc appears to have a robust financial position with a prudent approach to debt management, ensuring long-term financial sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Based on the provided data, the interest coverage ratio of Amgen Inc has been consistently above 1. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.
The trend in the interest coverage ratio shows a gradual decline from around 7.5 in March 2020 to a low of 1.78 in June 2024. This decline may raise concerns about the company's ability to meet its interest payments with its operating income.
A sustained decrease in the interest coverage ratio could signal a higher financial risk for Amgen Inc, as it may mean that the company is becoming more leveraged and has less cushion to cover its interest obligations. Monitoring this ratio closely is crucial for assessing the company's financial health and ability to service its debt in the long run.