Gross Profit Margin Trend for Amgen

A Historical Perspective on Amgen's Financial Health

Amgen Inc., a leading biotechnology company, has shown remarkable consistency in its gross profit margins over the decades. From the mid-1980s to the early 1990s, Amgen maintained an impressive gross profit ratio, often hovering around 100%. This period marked the company's early years of innovation and market penetration.

Key Insights

• 1985-1988: Amgen's gross profit ratio was consistently at 100%, reflecting its strong market position and efficient cost management.
• 1989-1990: A slight dip was observed, with the ratio dropping to approximately 99% in mid-1989 and further to around 89% by the end of 1989. This could be attributed to increased competition and rising operational costs.
• 1991-1992: The company stabilized its gross profit margins, maintaining an average of around 86%. This period highlights Amgen's resilience and strategic adjustments to sustain profitability.

Amgen's ability to maintain high gross profit margins over such an extended period underscores its robust business model and operational efficiency. Investors and stakeholders can draw confidence from this historical performance, indicating a well-managed and financially sound organization.