Amgen Inc. — Earnings Quality Grade F
AMGN · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 21 days (74 → 95)
AR growth 41.1% exceeds revenue growth 10.0%
Revenue 10.0%, CFFO -13.3%. Cash follows revenue
Expense Quality
Inventory -11.0% vs COGS -6.4%. Normal
CapEx growth 69.5% is >2x revenue growth 10.0%
SG&A/Gross Profit = 28.5%, excellent (<30%)
Gross margin swung +5.7pp (61.5% → 67.2%)
Cash Flow Quality
CFFO/NI = 1.29. Profits backed by cash
FCF $8.1B, FCF/NI = 1.05
Accruals ratio = -2.5%. Low accruals
Cash $9.1B covers only 17% of debt $54.6B
Balance Sheet Health
Goodwill+Intangibles $41.0B = 473% of equity. Over 50%
Debt/EBITDA = 3.2x. Healthy
Other assets grew 27.5% vs revenue 10.0%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -12% YoY. Normal
Manipulation Score
M-Score = -2.26 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08