Amgen Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	6,717)	6,552)	5,893)	7,264)	7,842)
Add: Gains (losses) on available-for-sale securities	—)	—)	(1)	(21)	360)
Net income (adjusted)	6,717)	6,552)	5,892)	7,243)	8,202)

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Amgen Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	24.96%	26.42%	24.25%	29.97%	35.32%
Adjusted net profit margin	24.96%	26.42%	24.25%	29.88%	36.94%
Return on Equity (ROE)
Reported ROE	107.78%	178.97%	87.96%	77.20%	81.07%
Adjusted ROE	107.78%	178.97%	87.94%	76.98%	84.79%
Return on Assets (ROA)
Reported ROA	6.91%	10.06%	9.63%	11.54%	13.13%
Adjusted ROA	6.91%	10.06%	9.63%	11.51%	13.74%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Amgen Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Amgen Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Profitability Ratio
Net profit margin¹	24.96%	26.42%	24.25%	29.97%	35.32%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	6,552)	5,892)	7,243)	8,202)
Product sales	26,910)	24,801)	24,297)	24,240)	22,204)
Profitability Ratio
Adjusted net profit margin²	24.96%	26.42%	24.25%	29.88%	36.94%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Product sales
= 100 × 6,717 ÷ 26,910 = 24.96%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Product sales
= 100 × 6,717 ÷ 26,910 = 24.96%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Amgen Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Stockholders’ equity	6,232)	3,661)	6,700)	9,409)	9,673)
Profitability Ratio
ROE¹	107.78%	178.97%	87.96%	77.20%	81.07%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	6,552)	5,892)	7,243)	8,202)
Stockholders’ equity	6,232)	3,661)	6,700)	9,409)	9,673)
Profitability Ratio
Adjusted ROE²	107.78%	178.97%	87.94%	76.98%	84.79%

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,717 ÷ 6,232 = 107.78%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 6,717 ÷ 6,232 = 107.78%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Amgen Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,717)	6,552)	5,893)	7,264)	7,842)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Profitability Ratio
ROA¹	6.91%	10.06%	9.63%	11.54%	13.13%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,717)	6,552)	5,892)	7,243)	8,202)
Total assets	97,154)	65,121)	61,165)	62,948)	59,707)
Profitability Ratio
Adjusted ROA²	6.91%	10.06%	9.63%	11.51%	13.74%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,717 ÷ 97,154 = 6.91%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 6,717 ÷ 97,154 = 6.91%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Amgen Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Amgen Inc. (NASDAQ:AMGN)

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