The business behind the dividend
| Measure | AMGN | Median | Formula |
|---|---|---|---|
| Return on equity | 89.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 14.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $11.02bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $8.10bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 24.7% | 15.0% | Operating income ÷ revenue |
| Net margin | 21.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 6.31x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 3.30x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.14x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 14.01x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.29x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 89.1% | 69.6% | 107.8% | 179.0% | 88.0% | 77.2% | 81.1% | 67.2% | 7.8% | 25.8% | 77.2% |
| Return on capital employed | 14.4% | 11.0% | 11.1% | 22.5% | 19.1% | 21.6% | 24.4% | 22.1% | 16.5% | 15.2% | 16.5% |
| Operating margin | 24.7% | 21.7% | 28.0% | 36.3% | 29.4% | 35.9% | 41.4% | 43.2% | 43.6% | 42.6% | 35.9% |
| Net margin | 21.0% | 12.2% | 23.8% | 24.9% | 22.7% | 28.6% | 33.6% | 35.3% | 8.7% | 33.6% | 23.8% |
| Debt to equity | 6.31x | 10.23x | 10.37x | 10.64x | 4.97x | 3.51x | 3.09x | 2.71x | 1.40x | 1.16x | 3.51x |
| Current ratio | 1.14x | 1.26x | 1.65x | 1.41x | 1.59x | 1.81x | 1.44x | 2.79x | 5.49x | 4.11x | 1.59x |
| Cash conversion | 1.29x | 2.81x | 1.26x | 1.48x | 1.57x | 1.45x | 1.17x | 1.35x | 5.65x | 1.34x | 1.35x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Amgen pays out less than 8 of them. The median for that group is 39.3%, against this company’s 63.3%.
Closest on free cash flow
- Eli Lilly (LLY) 60.0%
- Johnson & Johnson (JNJ) 62.9%
- AbbVie (ABBV) 65.4%
- Merck (MRK) 66.1%
Same sector and same denominator, so the figures are comparable. All 44 in health care →