Amgen Inc. (AMGN) — Revenue, Cash Flow and Balance Sheet Diagnostics

Opening snapshot#

Amgen Inc. ([AMGN]) reported a fiscal 2024 that splits the headline: revenue increased to $33.42B (+18.57%) while net income fell to $4.09B (-39.14%), creating a marked divergence between top-line momentum and the bottom line. That divergence sits alongside robust cash generation — free cash flow of $10.39B and operating cash flow of $11.49B for FY2024 — and an elevated leverage profile with net debt of $48.13B at year‑end. The numbers below are computed directly from the provided fiscal statements (incomeStatement, balanceSheet, cashFlow) and are used exclusively for the analysis that follows.

Key takeaways (50 words)#

Amgen’s FY2024 shows revenue strength but compressed margins: $33.42B revenue (+18.57%) vs $4.09B net income (-39.14%). Cash generation is strong — $10.39B FCF — while leverage remains elevated with net debt/EBITDA ≈ 3.60x and intangible assets (goodwill) representing roughly 50% of total assets.

Income-statement trends for [AMGN]#

Amgen’s top-line trend is straightforward: fiscal revenue rose to $33.42B in 2024 from $28.19B in 2023, an increase of +18.57% (calculated as (33.42 - 28.19) / 28.19 = +0.1857). That growth is the largest year-over-year acceleration across the four-year window 2021–2024 and represents a material re‑acceleration versus the mid-single-digit growth seen earlier in the period. The revenue gain, however, coincided with a sharp widening of cost of goods sold: cost of revenue increased from $8.41B in 2023 to $12.86B in 2024, which reduced gross margin.

Margin decomposition makes the story concrete. Gross profit in 2024 was $20.57B, so gross margin = 20.57 / 33.42 = 61.53%, down from 70.15% in 2023. Operating income of $7.26B yields an operating margin = 7.26 / 33.42 = 21.71%, versus 28.01% in 2023. Net income slid to $4.09B, producing a net margin = 4.09 / 33.42 = 12.24%, a meaningful compression from 23.83% the prior year. The combination of higher cost of goods sold and rising operating expenses (R&D and SG&A) explains most of the margin erosion.

Two features stand out numerically and deserve emphasis. First, EBITDA remained relatively high at $13.36B (EBITDA margin = 13.36 / 33.42 = 39.97%), showing that non‑cash charges and depreciation remain a large contributor to reported net income volatility. Second, the swing between operating income and income before tax highlights non‑operating impacts: income before tax was $4.61B in 2024 versus operating income $7.26B, implying non‑operating charges (interest, other items) of approximately $2.65B (calculated as 4.61 - 7.26 = -2.65), a larger drag than in 2023.

Income statement summary (selected years)

Source: company income statements provided (fiscal years 2021–2024). The table above shows the mechanical shift: revenue acceleration in 2024 did not produce proportionate operating or net income expansion because of faster growth in COGS and some non‑operating headwinds.

Cash flow quality#

Cash flow is the clearest strength in the numbers. Fiscal 2024 shows operating cash flow of $11.49B and free cash flow (FCF) of $10.39B after ~$1.10B of capital expenditures. Free cash flow margin is 10.39 / 33.42 = 31.08%, and FCF converted to net income at a rate of 10.39 / 4.09 = 2.54x (i.e., 254.0%), indicating that cash generation materially exceeds accounting profitability in FY2024.

That conversion is driven by large non‑cash depreciation and amortization of $5.59B (2024 D&A) and a favorable change in working capital that provided +$2.37B of cash. Operating cash flow divided by net income is 11.49 / 4.09 = 2.81x, which confirms high cash quality: the company produced nearly three times the net income in operating cash. The prevalence of non‑cash D&A plus a swing in working capital means net income understates near‑term cash‑generating capacity for fiscal 2024.

A critical contrast to 2023 is the investing activity profile. In 2023, acquisitions net were -$26.99B, which drove investing cash flow to a large outflow and materially reduced FCF that year. By contrast, 2024 has acquisitionsNet = $0, making the FY2024 FCF a more representative run‑rate reading of underlying business cash generation absent large M&A. The cash flow table below condenses these dynamics.

Cash flow summary (selected years)

Source: company cash flow statements provided. Two numerical implications emerge. First, dividends and shareholder distributions in 2024 ($4.83B in cash dividends) were fully covered by FCF: FCF / Dividends = 10.39 / 4.83 = 2.15x, indicating current dividends are sustainable from cash flow in FY2024. Second, the absence of large acquisition outflows in 2024 materially lifts FCF and the company’s ability to pay down debt.

Balance sheet changes and structural leverage#

Amgen’s balance sheet reflects the after‑effects of a major purchase and subsequent deleveraging. Total assets fell to $91.84B at 2024 year‑end from $97.15B in 2023 (a decline of -$5.31B). Notably, goodwill and intangible assets stood at $46.34B in 2024 — about 50.43% of total assets (46.34 / 91.84 = 0.5043). That is an unusually large intangible footprint and concentrates a substantial portion of enterprise value in non‑tangible assets.

On the liabilities side, total debt (including short and long term) declined to $60.10B in 2024 from $64.61B in 2023 (a reduction of -$4.51B). Long‑term debt specifically fell by -$6.62B (63.17 → 56.55). Net debt (total debt less cash and short‑term investments) decreased to $48.13B from $53.67B, a decline of -$5.54B, consistent with the company using operating cash flow and free cash flow to push down leverage in FY2024.

Shareholders’ equity remains small relative to liabilities: total stockholders’ equity was $5.88B at the end of 2024, down from $6.23B in 2023. Retained earnings are negative at -$27.59B, reflecting cumulative actions (dividends, buybacks) and acquisition accounting. The combination of high intangible assets and low book equity produces elevated leverage metrics when calculated on a book basis.

Balance-sheet snapshot (selected years)

Source: company balance sheets provided. The most salient numerical facts: (1) goodwill/intangible assets are roughly half of the balance sheet, and (2) book equity is a small fraction of total assets, so standard leverage measurements expressed against equity are mechanically large.

Key ratios and step-by-step calculations#

Below are the principal ratios calculated directly from the provided fiscal‑year numbers (all calculations use year‑end balance sheet items and FY EBITDA where indicated):

• Net debt / EBITDA (2024) = Net Debt / EBITDA = 48.13 / 13.36 = 3.60x. This is computed as 48.13B ÷ 13.36B = 3.603.

• Total debt / EBITDA (2024) = Total Debt / EBITDA = 60.10 / 13.36 = 4.50x. (60.10 ÷ 13.36 = 4.499.)

• Current ratio (2024) = Total Current Assets / Total Current Liabilities = 29.03 / 23.10 = 1.26x.

• Debt / Equity (2024, book) = Total Debt / Total Stockholders' Equity = 60.10 / 5.88 = 10.22x.

• Net debt / Market cap = 48.13 / 156.28 = 30.82% (48.13B ÷ 156.28B = 0.3082).

• Enterprise value (EV, 2024) = Market cap + Total Debt - Cash = 156.28 + 60.10 - 11.97 = $204.41B.

• EV / EBITDA (2024) = EV / EBITDA = 204.41 / 13.36 = 15.30x.

• Price / Earnings (trailing) = Price / EPS = 290.29 / 12.23 = 23.74x (using quoted price and EPS in the provided stock quote).

• Forward P/E (2025 estimate) = Price / estimatedEPS2025 = 290.29 / 21.05358 = 13.79x (using the 2025 estimated EPS from the provided estimates array).

• Price / Sales = Market cap / Revenue = 156.28 / 33.42 = 4.68x.

• Dividend yield (TTM dividend per share = 9.26) = 9.26 / 290.29 = 3.19%; using a last declared annualized dividend of 9.52 delivers 3.28%. Note the small discrepancy between the two dividend measures in the dataset (see discussion below).

Where published TTM metrics or other vendor numbers in the dataset differ from these computations (for example, the dataset lists an enterpriseValueOverEBITDATTM of 12.86x and netDebtToEBITDATTM of 3.03x), the differences are explainable by timing and definition: our calculations use year‑end balance‑sheet figures and FY EBITDA reported in the income statements provided, while TTM metrics and vendor multiples frequently use rolling trailing‑12‑month EBITDA, market‑cap snapshots at different timestamps, share count adjustments, or alternative EV definitions. When figures conflict, the most internally consistent approach for the fiscal‑year analysis is to pair year‑end balance sheet items with the corresponding fiscal EBITDA, which is the method used above.

What the numbers reveal (no narrative claims — data only)#

The 2024 accounts present a clear set of trade‑offs. Revenue growth accelerated materially (+18.57%) while gross and operating margins compressed — gross margin contracted to 61.53% from 70.15% in 2023, and operating margin declined to 21.71%. Those margin moves are the primary reason net income fell -39.14% despite higher revenue.

Cash generation tells a more positive story: operating cash flow of $11.49B and FCF of $10.39B in 2024 imply the business produced cash at a multiple of reported net income (CFO/NetIncome ≈ 2.81x). That cash cushion allowed the company to pay $4.83B in dividends in 2024 and still reduce net debt by $5.54B year over year. Numerically, FCF covered dividends ~2.15x, which is a key datapoint for assessing distribution sustainability independent of net income accounting.

The balance sheet remains a constraint. Net debt / EBITDA ≈ 3.60x and total debt / EBITDA ≈ 4.50x, while total debt represents roughly 65.45% of total assets (60.10 / 91.84 = 65.45%). Goodwill/intangibles at ~50% of assets concentrates value in non‑tangible items and makes impairment risk economically significant, since write‑downs would reduce book equity and could move leverage metrics higher in a compressed earnings scenario.

What this means for investors and key metrics to watch#

The numbers point to three measurable monitors that should determine near‑term financial flexibility: (1) net debt / EBITDA, (2) free cash flow after distributions, and (3) any change to goodwill/intangible carrying values. A falling net debt / EBITDA from 3.60x toward the low 3s would be a quantitative sign of successful deleveraging. Free cash flow after dividends and any buybacks is the clearest measure of whether distributions are being funded by operations: in 2024 FCF covered dividends by ~2.15x.

Watch the composition of revenue and cost of goods sold. The jump in cost of revenue in 2024 materially reduced gross margin; if that higher COGS is permanent (mix, supply costs or acquired asset integration), margin recovery will be difficult without either price or structural cost actions. Similarly, any future sizable M&A (acquisitions net flows) will swing FCF sharply as 2023 illustrated (acquisitionsNet = -$26.99B in 2023), so the presence or absence of large acquisition outflows is a direct determinant of reported FCF in any year.

Numerically track dividend coverage by FCF (FCF / dividends) and the pace of debt reduction. Using the 2024 data, FCF / dividends = 10.39 / 4.83 = 2.15x, and net debt fell by $5.54B. If the company can maintain FCF in the $10B range and avoid large acquisition outlays, the balance sheet can be meaningfully repaired over a multi‑year horizon; if FCF falls or sizeable M&A recurs, leverage metrics will remain elevated.

Discrepancies and data‑quality notes#

There are a small number of internally inconsistent items in the provided dataset; these are numerical, not interpretive, and affect headline ratios if used without reconciliation. Examples: (a) the dataset shows a TTM dividend per share of 9.26 and a separate profile field showing lastDiv 9.52; (b) vendor TTM ratios in the dataset (e.g., enterpriseValueOverEBITDATTM = 12.86x) differ from the EV/EBITDA = 15.30x computed here because of different EV or EBITDA time windows or market cap snapshots. Where such discrepancies exist I prioritized the direct use of fiscal year income statement values together with year‑end balance sheet items to produce internally consistent ratios for FY2024 (and reported the timing/definition differences explicitly).

Conclusion#

Amgen’s FY2024 is a study in contrasts: robust cash generation (FCF $10.39B) and accelerating revenue ($33.42B, +18.57%) on one side, and compressed margins with lower net income ($4.09B, -39.14%) and a still‑elevated leverage profile on the other. Key numerical watchpoints are the company’s ability to sustain ~$10B free cash flow absent large acquisition outlays, to continue reducing net debt from $48.13B (net debt/EBITDA ≈ 3.60x), and to avoid material goodwill impairments given intangibles make up roughly 50% of assets. Those objective metrics — FCF after distributions, net debt/EBITDA, and goodwill carrying values — are the most direct, data‑grounded signals the financial statements provide about Amgen’s near‑term fiscal flexibility.

All figures and calculations in this piece were produced from the supplied company financial tables (incomeStatement, balanceSheet, cashFlow) for fiscal years 2021–2024 and the quoted market data in the provided stockQuotes block. For event‑level references (acquisition activity) see company announcements and filings in the provided source set (for example, the company's Rule 27 acquisition announcement).