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Amgen Operating Margin %

: 33.00% (As of Jun. 2022)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Amgen's Operating Income for the three months ended in Jun. 2022 was $2,176 Mil. Amgen's Revenue for the three months ended in Jun. 2022 was $6,594 Mil. Therefore, Amgen's Operating Margin % for the quarter that ended in Jun. 2022 was 33.00%.

Warning Sign:

Amgen Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.4%.

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: 30.86   Med: 37.53   Max: 43.65
Current: 35.47


AMGN's Operating Margin % is ranked better than
96.96% of 1054 companies
in the Drug Manufacturers industry
Industry Median: 5.45 vs AMGN: 35.47

Amgen's 5-Year Average Operating Margin % Growth Rate was -4.40% per year.

Amgen's Operating Income for the three months ended in Jun. 2022 was $2,176 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2022 was $9,358 Mil.


Amgen Operating Margin % Historical Data

The historical data trend for Amgen's Operating 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 43.65 43.22 41.41 35.95 35.20

Amgen Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Operating 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 35.75 35.46 33.65 40.08 33.00

Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution

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

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



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. 2021 is calculated as

Operating Margin %=Operating Income (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=9144 / 25979
=35.20 %

Amgen's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=2176 / 6594
=33.00 %

* 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 Nokia’s 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 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

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