GURUFOCUS.COM » STOCK LIST » USA » NAS » Amgen Inc (NAS:AMGN) » Definitions » Altman Z-Score
Switch to:

Amgen (NAS:AMGN) Altman Z-Score

: 1.93 (As of Today)
View and export this data going back to 1983. Start your Free Trial

Warning Sign:

Altman Z-score of 1.97 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Amgen has a Altman Z-Score of 1.93, indicating it is in Grey Zones. This implies that Amgen is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Amgen's Altman Z-Score or its related term are showing as below:

AMGN' s Altman Z-Score Range Over the Past 10 Years
Min: 1.62   Med: 5.93   Max: 48.44
Current: 1.97

During the past 13 years, Amgen's highest Altman Z-Score was 48.44. The lowest was 1.62. And the median was 5.93.


Amgen (NAS:AMGN) Altman Z-Score Historical Data

The historical data trend for Amgen's Altman Z-Score 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
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.63 2.32 2.29 2.09 1.81

Amgen Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Altman Z-Score 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 1.73 1.81 1.62 1.77 1.65

Amgen (NAS:AMGN) Altman Z-Score Competitive Comparison

For the Drug Manufacturers - General subindustry, Amgen's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 (NAS:AMGN) Altman Z-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, Amgen's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Amgen's Altman Z-Score falls into.



Amgen Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Amgen's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1528+1.4*-0.4406+3.3*0.1422+0.6*2.4761+1.0*0.4133
=1.93

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Sep. 2022:
Total Assets was $63,700 Mil.
Total Current Assets was $24,062 Mil.
Total Current Liabilities was $14,331 Mil.
Retained Earnings was $-28,066 Mil.
Pre-Tax Income was 2392 + 1531 + 1675 + 2131 = $7,729 Mil.
Interest Expense was -368 + -328 + -295 + -335 = $-1,326 Mil.
Revenue was 6652 + 6594 + 6238 + 6846 = $26,330 Mil.
Market Cap (Today) was $148,682 Mil.
Total Liabilities was $60,047 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(24062 - 14331)/63700
=0.1528

X2=Retained Earnings/Total Assets
=-28066/63700
=-0.4406

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(7729 - -1326)/63700
=0.1422

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=148681.846/60047
=2.4761

X5=Revenue/Total Assets
=26330/63700
=0.4133

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Amgen has a Altman Z-Score of 1.93 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Amgen  (NAS:AMGN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Amgen Altman Z-Score Related Terms

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


Amgen (NAS:AMGN) 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 (NAS:AMGN) 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)
premium membership