Operating Margin % is calculated as Operating Income divided by its Revenue. Amgen's Operating Income for the
three
months ended in Dec. 2023 was $1,271 Mil. Amgen's Revenue for the
three
months ended in Dec. 2023 was $8,196 Mil. Therefore, Amgen's Operating Margin % for the quarter that ended in Dec. 2023 was 15.51%.
Warning Sign:
Amgen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.1%.
The historical rank and industry rank for Amgen's Operating Margin % or its related term are showing as below:
AMGN'
s Operating Margin % Range Over the Past 10 Years
Min: 28.01 Med: 37.72 Max: 43.65
Current: 28.01
AMGN's Operating Margin % is ranked better than 94.11% of 1018
companies
in the Drug Manufacturers industry
Industry Median: 6.395
vs AMGN: 28.01
Amgen's 5-Year Average Operating Margin % Growth Rate was -7.10% per year.
Amgen's Operating Income for the
three
months ended in Dec. 2023 was $1,271 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $7,897 Mil.
Amgen Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Amgen's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Amgen (NAS:AMGN) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Amgen Operating Margin % Related Terms
Thank you for viewing the detailed overview of Amgen's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brings several rare disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.
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