Amgen Inc. (NASDAQ:AMGN)

The composition of goodwill and intangible assets exhibits significant shifts over the observed period. Overall, the aggregate value of these assets initially increased substantially before declining in later years. A detailed examination of the individual components reveals varying trends.

Goodwill

Goodwill experienced a consistent, albeit moderate, increase from US$14,890 million in 2021 to US$18,680 million in 2025. The largest single-year increase occurred between 2022 and 2023, rising by US$3,100 million. Growth slowed considerably in subsequent periods.

Developed-product-technology rights

This category demonstrates the most substantial growth among the intangible assets, increasing from US$25,561 million in 2021 to a peak of US$48,631 million in 2023. However, a slight decline is then observed, decreasing to US$47,805 million by 2025. This suggests potential impairments or amortization effects beginning to influence the balance.

Finite-lived Intangible Assets

The gross carrying amount of finite-lived intangible assets increased significantly from US$32,099 million in 2021 to US$55,229 million in 2023, mirroring the trend in developed-product-technology rights. Accumulated amortization also increased substantially, rising from -US$17,987 million to -US$32,784 million over the same period. Consequently, the net finite-lived intangible assets increased considerably between 2021 and 2023, but then decreased from US$31,423 million in 2023 to US$21,566 million in 2025. This decline is attributable to the increasing amortization expense outpacing any additions to the gross carrying amount.

Licensing and R&D Technology Rights

Both licensing rights and R&D technology rights exhibited relatively stable growth throughout the period. Licensing rights increased from US$3,807 million to US$3,917 million, while R&D technology rights increased from US$1,377 million to US$1,425 million. These increases are modest compared to other intangible asset categories.

Marketing-related Rights

Marketing-related rights experienced a slight decrease from US$1,354 million in 2021 to US$1,202 million in 2024, followed by a minimal increase to US$1,203 million in 2025. This suggests a potential shift in strategy regarding marketing asset investment.

In-process Research and Development & Indefinite-lived Intangible Assets

Both in-process research and development and indefinite-lived intangible assets decreased consistently from US$1,070 million in 2021 to US$710 million in 2025. This suggests a reduction in ongoing research projects or a reassessment of the indefinite lives assigned to certain assets.

Other Intangible Assets, Net

Other intangible assets, net, followed a similar pattern to finite-lived intangible assets, increasing significantly to US$32,641 million in 2023 before declining to US$22,276 million in 2025. This suggests a substantial initial investment followed by a period of amortization or impairment.

Goodwill and Other Intangible Assets (Aggregate)

The combined value of goodwill and other intangible assets rose from US$30,072 million in 2021 to a peak of US$51,270 million in 2023. A subsequent decline is observed, falling to US$40,956 million by 2025. This overall trend is largely driven by the fluctuations in developed-product-technology rights and other intangible assets.

The data indicates a period of significant investment in intangible assets, particularly between 2021 and 2023, followed by a period of decline, likely due to amortization and potential impairment charges. The substantial growth in developed-product-technology rights and other intangible assets warrants further investigation to understand the underlying drivers and associated risks.

An examination of the financial information reveals significant adjustments to total assets and stockholders’ equity over the five-year period. These adjustments appear to be driven by the removal of goodwill and intangible assets, resulting in substantial differences between reported and adjusted figures.

Total Assets

Reported total assets increased from US$61,165 million in 2021 to US$65,121 million in 2022, then experienced a considerable rise to US$97,154 million in 2023. A subsequent decrease to US$91,839 million was noted in 2024, followed by a further decline to US$90,586 million in 2025. The adjusted total assets follow a similar pattern, though at substantially lower levels. Adjusted total assets grew from US$46,275 million in 2021 to US$49,592 million in 2022, then to US$78,525 million in 2023, decreasing to US$73,202 million in 2024 and US$71,906 million in 2025. The difference between reported and adjusted total assets widens considerably in 2023, indicating a large removal of goodwill or intangible assets during that year.

Stockholders’ Equity

Reported stockholders’ equity demonstrates volatility throughout the period. It decreased from US$6,700 million in 2021 to US$3,661 million in 2022, then increased to US$6,232 million in 2023, followed by a decrease to US$5,877 million in 2024, and a substantial increase to US$8,658 million in 2025. Conversely, adjusted stockholders’ equity is consistently negative throughout the period, starting at negative US$8,190 million in 2021 and reaching negative US$12,760 million in 2024 before improving to negative US$10,022 million in 2025. The negative adjusted equity suggests a significant write-down of assets relative to liabilities, likely stemming from the removal of goodwill and related intangible assets.

The consistent negative values for adjusted stockholders’ equity raise concerns about the underlying asset base and the potential for future earnings volatility. The magnitude of the adjustments to both total assets and stockholders’ equity suggests that goodwill and intangible assets represent a substantial portion of the reported financial position. The largest adjustment occurred between 2022 and 2023, warranting further investigation into the specific events that triggered this change.

The trend indicates a systematic removal of goodwill and intangible assets, which has a material impact on the reported financial position. The divergence between reported and adjusted figures should be carefully considered when evaluating the company’s financial health and performance.

The financial metrics demonstrate a notable impact from the adjustment for goodwill and intangible assets. Reported asset turnover generally decreased from 2021 to 2023, with a slight recovery in 2024 and 2025, while the adjusted asset turnover exhibited a similar pattern but at consistently higher levels. This suggests that the presence of goodwill significantly depresses the reported asset turnover ratio. Reported financial leverage experienced substantial volatility, peaking in 2022 before declining in subsequent years. The absence of adjusted financial leverage values limits a comparative analysis of this metric. Reported profitability ratios, ROE and ROA, showed considerable fluctuation, with a marked decline from 2021 to 2023 followed by partial recovery. The adjusted ROE and ROA values consistently exceeded their reported counterparts, indicating that the exclusion of goodwill and intangibles results in a more favorable profitability picture.

Total Asset Turnover

Reported total asset turnover decreased from 0.40 in 2021 to 0.28 in 2023, before increasing to 0.35 in 2024 and 0.39 in 2025. The adjusted ratio, consistently higher, followed a similar trend, moving from 0.53 in 2021 to 0.34 in 2023, then rising to 0.44 in 2024 and 0.49 in 2025. The difference between reported and adjusted values highlights the suppressing effect of goodwill on the asset turnover calculation.

Financial Leverage

Reported financial leverage increased significantly from 9.13 in 2021 to 17.79 in 2022, then decreased to 10.46 in 2025. Adjusted financial leverage figures are unavailable, preventing a direct comparison and assessment of the impact of goodwill removal on this metric.

Return on Equity (ROE)

Reported ROE experienced substantial volatility, beginning at 87.96% in 2021, peaking at 178.97% in 2022, declining to 69.59% in 2024, and recovering to 89.06% in 2025. Adjusted ROE values are not provided, hindering a comparative analysis.

Return on Assets (ROA)

Reported ROA decreased from 9.63% in 2021 to 4.45% in 2024, before increasing to 8.51% in 2025. Adjusted ROA consistently exceeded the reported values, moving from 12.73% in 2021 to 5.59% in 2024 and recovering to 10.72% in 2025. This consistently higher adjusted ROA suggests that goodwill and intangible assets reduce the reported return on assets.

In summary, the adjustments for goodwill and intangible assets consistently resulted in improved asset turnover and profitability ratios. The absence of adjusted financial leverage values prevents a complete assessment of the impact of these adjustments across all key financial ratios.

An examination of the financial information reveals trends in both total asset values and associated turnover ratios over a five-year period. Reported total assets increased significantly from 2021 to 2023, followed by declines in 2024 and 2025. Adjusted total assets mirrored this pattern, though the magnitude of the increases and decreases differed. The adjusted total asset turnover ratio demonstrates fluctuations throughout the period, offering a potentially more refined view of asset utilization when considering adjustments to total asset values.

Reported Total Assets

Reported total assets grew from US$61,165 million in 2021 to US$65,121 million in 2022, representing a moderate increase. A substantial rise was then observed in 2023, reaching US$97,154 million. However, assets decreased to US$91,839 million in 2024 and continued to decline slightly to US$90,586 million in 2025. This suggests potential large acquisitions or accounting adjustments in 2023, followed by subsequent asset write-downs or disposals.

Adjusted Total Assets

Adjusted total assets followed a similar trajectory to reported total assets, increasing from US$46,275 million in 2021 to US$49,592 million in 2022. A significant increase occurred in 2023, reaching US$78,525 million, before decreasing to US$73,202 million in 2024 and US$71,906 million in 2025. The adjustments made to arrive at this figure appear to moderate the overall asset base, potentially excluding items like goodwill or intangible assets that may not directly contribute to revenue generation.

Reported Total Asset Turnover

The reported total asset turnover ratio decreased from 0.40 in 2021 to 0.38 in 2022, indicating a slight reduction in revenue generated per dollar of reported assets. A further decline to 0.28 was observed in 2023, coinciding with the largest increase in reported total assets. The ratio recovered somewhat to 0.35 in 2024 and 0.39 in 2025, but remained below the 2021 level. This suggests that the company became less efficient in utilizing its reported assets to generate revenue in 2023, but efficiency improved modestly in subsequent years.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio began at 0.53 in 2021 and decreased to 0.50 in 2022. A decline to 0.34 was noted in 2023, mirroring the trend in the reported ratio, but less pronounced. The ratio then increased to 0.44 in 2024 and 0.49 in 2025, approaching its initial 2021 level. The adjusted ratio consistently exceeded the reported ratio throughout the period, suggesting that excluding certain asset components results in a more favorable assessment of asset utilization. The recovery in 2024 and 2025 indicates improved efficiency when considering the adjusted asset base.

The divergence between reported and adjusted ratios highlights the impact of specific asset categories, likely goodwill and intangible assets, on overall asset turnover. The fluctuations observed warrant further investigation into the underlying drivers of asset growth and the effectiveness of asset utilization strategies.

The period between 2021 and 2025 demonstrates significant fluctuations in reported and adjusted asset and equity values, resulting in considerable shifts in reported financial leverage. A notable divergence exists between reported and adjusted figures, particularly concerning stockholders’ equity, which warrants further examination.

Total Assets

Reported total assets increased from US$61.165 billion in 2021 to US$65.121 billion in 2022. A substantial increase followed, reaching US$97.154 billion in 2023, before declining to US$91.839 billion in 2024 and further to US$90.586 billion in 2025. Adjusted total assets mirrored this trend, albeit at lower values, moving from US$46.275 billion in 2021 to US$71.906 billion in 2025, with a peak of US$78.525 billion in 2023.

Stockholders’ Equity

Reported stockholders’ equity experienced a substantial decrease from US$6.700 billion in 2021 to US$3.661 billion in 2022, followed by a recovery to US$6.232 billion in 2023, a slight decrease to US$5.877 billion in 2024, and a further increase to US$8.658 billion in 2025. In contrast, adjusted stockholders’ equity consistently registered negative values throughout the period, starting at negative US$8.190 billion in 2021 and reaching negative US$12.760 billion in 2024 before improving to negative US$10.022 billion in 2025. The consistently negative adjusted equity suggests a significant reliance on other forms of financing.

Financial Leverage

Reported financial leverage increased significantly from 9.13 in 2021 to 17.79 in 2022, then decreased to 15.59 in 2023 and remained relatively stable at 15.63 in 2024. A notable decrease was observed in 2025, with reported financial leverage falling to 10.46. The absence of adjusted financial leverage figures prevents a comparative analysis of leverage based on adjusted equity. The fluctuations in reported leverage correlate with the changes in reported assets and equity, indicating a dynamic capital structure.

The substantial difference between reported and adjusted equity, and consequently the lack of adjusted financial leverage calculations, suggests the presence of significant off-balance sheet items or accounting adjustments impacting the reported financial position. The trend of declining adjusted total assets from 2023 to 2025, despite relatively stable reported total assets, could indicate a reduction in the value of intangible assets or other adjusted items. Further investigation into the nature of these adjustments is recommended to fully understand the company’s financial risk profile.

Reported stockholders’ equity exhibited considerable fluctuation over the five-year period. It decreased significantly from 2021 to 2022, then increased in 2023, followed by a slight decrease in 2024, and a substantial increase in 2025. Conversely, adjusted stockholders’ equity consistently registered negative values throughout the period, and demonstrated a deepening negative trend from 2021 through 2024 before showing a modest improvement in 2025.

Reported return on equity (ROE) demonstrated substantial volatility. A peak was observed in 2022, followed by declines in 2023 and 2024, and a subsequent increase in 2025, though remaining below the 2022 level. The absence of adjusted ROE values prevents a comparative analysis of profitability metrics incorporating adjustments to stockholders’ equity.

Stockholders’ Equity Trends

The divergence between reported and adjusted stockholders’ equity is notable. The consistently negative adjusted equity suggests the presence of significant off-balance sheet items or accounting adjustments impacting the equity calculation. The substantial increase in reported equity in 2025 warrants further investigation to determine the underlying drivers.

ROE Volatility

The high reported ROE in 2022, while seemingly positive, should be examined in conjunction with the significant decrease in reported stockholders’ equity during the same period. This suggests a potential sensitivity of the ROE calculation to changes in the equity base. The lack of adjusted ROE figures limits the ability to assess the true underlying profitability, particularly considering the negative adjusted equity.

The substantial differences between reported and adjusted stockholders’ equity, coupled with the absence of adjusted ROE, indicate a need for a deeper investigation into the nature of the adjustments being made and their impact on the overall financial picture. Further analysis should focus on understanding the components of the adjustments to stockholders’ equity and their implications for the company’s financial health and performance.

The analysis reveals distinct trends in both reported and adjusted return on assets (ROA) alongside significant fluctuations in total asset values over the five-year period. Reported total assets increased from 2021 to 2023, peaking at US$97,154 million, before declining in 2024 and 2025. Adjusted total assets mirrored this pattern, though with lower absolute values, reaching US$78,525 million in 2023 and subsequently decreasing to US$71,906 million by 2025.

Reported Return on Assets (ROA)

Reported ROA exhibited an initial increase from 9.63% in 2021 to 10.06% in 2022. A subsequent and more pronounced decline was observed, falling to 6.91% in 2023 and further to 4.45% in 2024. A recovery occurred in 2025, with reported ROA rising to 8.51%. This suggests a weakening in profitability relative to reported assets, followed by a partial rebound in the most recent year.

Adjusted Return on Assets (ROA)

Adjusted ROA followed a similar trajectory to the reported ROA, increasing from 12.73% in 2021 to 13.21% in 2022. It then decreased to 8.55% in 2023 and 5.59% in 2024, representing the lowest point in the observed period. A substantial increase was noted in 2025, with adjusted ROA reaching 10.72%. The adjusted ROA consistently exceeded the reported ROA throughout the period, indicating that the adjustments made to total assets positively impacted profitability metrics.

The divergence between reported and adjusted ROA highlights the impact of goodwill and intangible assets on overall profitability measures. The adjustments to total assets suggest these items are materially affecting the reported ROA. The declines in both reported and adjusted ROA in 2023 and 2024, despite increasing asset bases, warrant further investigation into the underlying drivers of profitability. The recovery in 2025, particularly the more significant rebound in adjusted ROA, suggests a potential stabilization or improvement in core operational performance relative to the adjusted asset base.