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Amgen (NAS:AMGN) Gross Margin %

: 62.03% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Amgen's Gross Profit for the three months ended in Dec. 2023 was $5,084 Mil. Amgen's Revenue for the three months ended in Dec. 2023 was $8,196 Mil. Therefore, Amgen's Gross Margin % for the quarter that ended in Dec. 2023 was 62.03%.

Warning Sign:

Amgen Inc gross margin has been in long-term decline. The average rate of decline per year is -3%.


The historical rank and industry rank for Amgen's Gross Margin % or its related term are showing as below:

AMGN' s Gross Margin % Range Over the Past 10 Years
Min: 70.02   Med: 79.23   Max: 82.73
Current: 70.02


During the past 13 years, the highest Gross Margin % of Amgen was 82.73%. The lowest was 70.02%. And the median was 79.23%.

AMGN's Gross Margin % is ranked better than
84.28% of 999 companies
in the Drug Manufacturers industry
Industry Median: 46.77 vs AMGN: 70.02

Amgen had a gross margin of 62.03% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Amgen was -3.00% per year.


Amgen Gross Margin % Historical Data

The historical data trend for Amgen's Gross Margin % can be seen below:

* 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.

* Premium members only.

Amgen Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 81.35 75.77 75.16 75.66 70.02

Amgen Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 74.46 71.83 74.05 73.84 62.03

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Amgen Gross Margin % Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Amgen's Gross Margin % falls into.



Amgen Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Amgen's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=19739 / 28190
=(Revenue - Cost of Goods Sold) / Revenue
=(28190 - 8451) / 28190
=70.02 %

Amgen's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=5084 / 8196
=(Revenue - Cost of Goods Sold) / Revenue
=(8196 - 3112) / 8196
=62.03 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Amgen  (NAS:AMGN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Amgen had a gross margin of 62.03% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Amgen Gross Margin % Related Terms

Thank you for viewing the detailed overview of Amgen's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Amgen (NAS:AMGN) Business Description

Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
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.
Executives
Nancy A. Grygiel officer: SVP & CCO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Jonathan P Graham officer: SVP, Gen. Counsel & Secy. 2099 PENNSYLVANIA AVENUE, NW, 12TH FLOOR, WASHINGTON DC 20006
Matthew C. Busch officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Murdo Gordon officer: EVP Global Commercial Ops C/O BRISTOL-MYERS SQUIBB COMPANY, 345 PARK AVE, NEW YORK NY 10154
Rachna Khosla officer: SVP, Business Development ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
R Sanders Williams director DUKE UNIVERSITY SCHOOL OF MEDICINE, TRENT DRIVE, DURHAM NC 27706
Robert Eckert director MATTEL, INC., 333 CONTINENTAL BLVD, M1-1518, EL SEGUNDO CA 90245
Michael V Drake director ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Derek Miller officer: SVP, Human Resources ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Omar Ishrak director 710 MEDTRONIC PKWY, MS LC300, MINNEAPOLIS MN 55432
Ronald D Sugar director 10877 WILSHIRE BLVD., SUITE 1650, LOS ANGELES CA 900274
Linda H. Louie officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320
Amy E Miles director
David Piacquad officer: SVP, Business Development ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320-1799
Peter H. Griffith officer: EVP & CFO ONE AMGEN CENTER DRIVE, THOUSAND OAKS CA 91320