GURUFOCUS.COM » STOCK LIST » USA » NAS » Amgen Inc (NAS:AMGN) » Definitions » Interest Coverage
Switch to:

Amgen Interest Coverage

: 6.63 (As of Jun. 2022)
View and export this data going back to 1983. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Amgen's Operating Income for the three months ended in Jun. 2022 was $2,176 Mil. Amgen's Interest Expense for the three months ended in Jun. 2022 was $-328 Mil. Amgen's interest coverage for the quarter that ended in Jun. 2022 was 6.63. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Amgen's Interest Coverage or its related term are showing as below:

AMGN' s Interest Coverage Range Over the Past 10 Years
Min: 5.3   Med: 7.44   Max: 7.77
Current: 7.46


AMGN's Interest Coverage is ranked worse than
69.43% of 651 companies
in the Drug Manufacturers industry
Industry Median: 21.28 vs AMGN: 7.46

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Amgen Interest Coverage Historical Data

The historical data trend for Amgen's Interest Coverage 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.65 7.37 7.51 7.24 7.64

Amgen Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 8.30 8.03 6.88 8.47 6.63

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Amgen's Interest Coverage falls into.



Amgen Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Amgen's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Amgen's Interest Expense was $-1,197 Mil. Its Operating Income was $9,144 Mil. And its Long-Term Debt & Capital Lease Obligation was $33,222 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*9144/-1197
=7.64

Amgen's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Amgen's Interest Expense was $-328 Mil. Its Operating Income was $2,176 Mil. And its Long-Term Debt & Capital Lease Obligation was $35,705 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*2176/-328
=6.63

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Amgen  (NAS:AMGN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Amgen Interest Coverage Related Terms

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


Amgen Business Description

Amgen logo
Address
One Amgen Center Drive, Thousand Oaks, CA, USA, 91320-1799
Amgen is a leader in biotechnology-based human therapeutics, with historical expertise in renal disease and cancer supportive care products. 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). Amgen's biosimilar portfolio includes Mvasi (biosimilar Avastin), Kanjinti (biosimilar Herceptin), and Amgevita (biosimilar Humira).
Executives
Miller Derek officer: SVP, Human Resources ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Khosla Rachna officer: SVP, Business Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Ishrak Omar director 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Louie Linda H. officer: VP, Finance & CAO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Miles Amy E director
Grygiel Nancy A. officer: SVP & CCO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Griffith Peter H. officer: EVP & CFO ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Gordon Murdo officer: EVP Global Commercial Ops C/O BRISTOL-MYERS SQUIBB COMPANY 345 PARK AVE NEW YORK NY 10154
Reese David M officer: EVP, Research and Development ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Druker Brian director ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320-1799
Austin Wanda M director 6001 BOLLINGER CANYON ROAD SAN RAMON CA 94583
Holley Charles M director
Johnston Lori A officer: SVP, HR C/O AMGEN INC. ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320
Kullman Ellen Jamison director UNITED TECHNOLOGIES CORP 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Santos Esteban officer: EVP, Operations ONE AMGEN CENTER DRIVE THOUSAND OAKS CA 91320

Amgen Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)