Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

AbbVie Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Domestic 3,272 2,647 1,987 907 102
Foreign 994 916 351 194 320
Current taxes 4,266 3,563 2,338 1,101 422
Domestic (2,324) (1,512) (839) (58) (137)
Foreign (565) (419) (59) (2,267) 259
Deferred taxes (2,889) (1,931) (898) (2,325) 122
Income tax expense (benefit) 1,377 1,632 1,440 (1,224) 544

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. AbbVie Inc. current taxes increased from 2021 to 2022 and from 2022 to 2023.
Deferred taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. AbbVie Inc. deferred taxes decreased from 2021 to 2022 and from 2022 to 2023.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. AbbVie Inc. income tax expense (benefit) increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Effective Income Tax Rate (EITR)

AbbVie Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Effect of foreign operations 8.00% -4.40% -5.40% 2.40% -8.40%
U.S. tax credits -3.10% -2.80% -2.80% -10.60% -3.30%
Non-deductible expenses 1.50% 0.60% 0.30% 7.20% 1.00%
Tax law changes -3.80% -2.40% -2.00% -48.50% 3.10%
Tax audit settlements -1.10% 0.90% -0.40% -5.10% -4.70%
All other, net -0.50% -0.80% 0.40% -1.30% -0.60%
Effective tax rate, before impacts related to U.S. tax reform 22.00% 12.10% 11.10% -34.90% 8.10%
Impacts related to U.S. tax reform 0.00% 0.00% 0.00% -1.10% -1.60%
Effective tax rate 22.00% 12.10% 11.10% -36.00% 6.50%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective tax rate, before impacts related to U.S. tax reform Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. AbbVie Inc. effective tax rate, before impacts related to U.S. tax reform increased from 2021 to 2022 and from 2022 to 2023.

Components of Deferred Tax Assets and Liabilities

AbbVie Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Compensation and employee benefits 519 497 937 1,109 810
Accruals and reserves 1,113 1,023 667 438 371
Chargebacks and rebates 1,431 991 837 555 477
Advance payments 298 547 809 324 615
Net operating losses and other credit carryforwards 14,316 10,391 10,095 2,765 838
Other 2,259 1,710 1,234 1,371 406
Deferred tax assets 19,936 15,159 14,579 6,562 3,517
Valuation allowances (13,478) (9,627) (9,391) (1,203) (731)
Net deferred tax assets 6,458 5,532 5,188 5,359 2,786
Excess of book basis over tax basis of intangible assets (1,535) (3,590) (4,711) (5,274) (2,712)
Excess of book basis over tax basis in investments (374) (340) (308) (335) (249)
Other (746) (772) (904) (982) (440)
Deferred tax liabilities (2,655) (4,702) (5,923) (6,591) (3,401)
Net deferred tax assets (liabilities) 3,803 830 (735) (1,232) (615)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. AbbVie Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. AbbVie Inc. net deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. AbbVie Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

AbbVie Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 5,755 3,020 2,274 2,414 515
Deferred tax liabilities 1,952 2,190 3,009 3,646 1,130

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. AbbVie Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. AbbVie Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

AbbVie Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 134,711 138,805 146,529 150,565 89,115
Less: Noncurrent deferred tax assets, net 5,755 3,020 2,274 2,414 515
Total assets (adjusted) 128,956 135,785 144,255 148,151 88,600
Adjustment to Total Liabilities
Total liabilities (as reported) 124,314 121,518 131,093 137,468 97,287
Less: Noncurrent deferred tax liabilities, net 1,952 2,190 3,009 3,646 1,130
Total liabilities (adjusted) 122,362 119,328 128,084 133,822 96,157
Adjustment to Stockholders’ Equity (deficit)
Stockholders’ equity (deficit) (as reported) 10,360 17,254 15,408 13,076 (8,172)
Less: Net deferred tax assets (liabilities) 3,803 830 (735) (1,232) (615)
Stockholders’ equity (deficit) (adjusted) 6,557 16,424 16,143 14,308 (7,557)
Adjustment to Net Earnings Attributable To AbbVie Inc.
Net earnings attributable to AbbVie Inc. (as reported) 4,863 11,836 11,542 4,616 7,882
Add: Deferred income tax expense (benefit) (2,889) (1,931) (898) (2,325) 122
Net earnings attributable to AbbVie Inc. (adjusted) 1,974 9,905 10,644 2,291 8,004

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

AbbVie Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

AbbVie Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 8.95% 20.39% 20.54% 10.08% 23.69%
Adjusted net profit margin 3.63% 17.06% 18.94% 5.00% 24.06%
Total Asset Turnover
Reported total asset turnover 0.40 0.42 0.38 0.30 0.37
Adjusted total asset turnover 0.42 0.43 0.39 0.31 0.38
Financial Leverage
Reported financial leverage 13.00 8.04 9.51 11.51 —
Adjusted financial leverage 19.67 8.27 8.94 10.35 —
Return on Equity (ROE)
Reported ROE 46.94% 68.60% 74.91% 35.30% —
Adjusted ROE 30.11% 60.31% 65.94% 16.01% —
Return on Assets (ROA)
Reported ROA 3.61% 8.53% 7.88% 3.07% 8.84%
Adjusted ROA 1.53% 7.29% 7.38% 1.55% 9.03%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. AbbVie Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AbbVie Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 AbbVie Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. AbbVie Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. AbbVie Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

AbbVie Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Net revenues 54,318 58,054 56,197 45,804 33,266
Profitability Ratio
Net profit margin1 8.95% 20.39% 20.54% 10.08% 23.69%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc. 1,974 9,905 10,644 2,291 8,004
Net revenues 54,318 58,054 56,197 45,804 33,266
Profitability Ratio
Adjusted net profit margin2 3.63% 17.06% 18.94% 5.00% 24.06%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net earnings attributable to AbbVie Inc. ÷ Net revenues
= 100 × 4,863 ÷ 54,318 = 8.95%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Net revenues
= 100 × 1,974 ÷ 54,318 = 3.63%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. AbbVie Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net revenues 54,318 58,054 56,197 45,804 33,266
Total assets 134,711 138,805 146,529 150,565 89,115
Activity Ratio
Total asset turnover1 0.40 0.42 0.38 0.30 0.37
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net revenues 54,318 58,054 56,197 45,804 33,266
Adjusted total assets 128,956 135,785 144,255 148,151 88,600
Activity Ratio
Adjusted total asset turnover2 0.42 0.43 0.39 0.31 0.38

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 54,318 ÷ 134,711 = 0.40

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 54,318 ÷ 128,956 = 0.42

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AbbVie Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 134,711 138,805 146,529 150,565 89,115
Stockholders’ equity (deficit) 10,360 17,254 15,408 13,076 (8,172)
Solvency Ratio
Financial leverage1 13.00 8.04 9.51 11.51 —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 128,956 135,785 144,255 148,151 88,600
Adjusted stockholders’ equity (deficit) 6,557 16,424 16,143 14,308 (7,557)
Solvency Ratio
Adjusted financial leverage2 19.67 8.27 8.94 10.35 —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 134,711 ÷ 10,360 = 13.00

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity (deficit)
= 128,956 ÷ 6,557 = 19.67

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 AbbVie Inc. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Stockholders’ equity (deficit) 10,360 17,254 15,408 13,076 (8,172)
Profitability Ratio
ROE1 46.94% 68.60% 74.91% 35.30% —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc. 1,974 9,905 10,644 2,291 8,004
Adjusted stockholders’ equity (deficit) 6,557 16,424 16,143 14,308 (7,557)
Profitability Ratio
Adjusted ROE2 30.11% 60.31% 65.94% 16.01% —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net earnings attributable to AbbVie Inc. ÷ Stockholders’ equity (deficit)
= 100 × 4,863 ÷ 10,360 = 46.94%

2 Adjusted ROE = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Adjusted stockholders’ equity (deficit)
= 100 × 1,974 ÷ 6,557 = 30.11%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. AbbVie Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Total assets 134,711 138,805 146,529 150,565 89,115
Profitability Ratio
ROA1 3.61% 8.53% 7.88% 3.07% 8.84%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to AbbVie Inc. 1,974 9,905 10,644 2,291 8,004
Adjusted total assets 128,956 135,785 144,255 148,151 88,600
Profitability Ratio
Adjusted ROA2 1.53% 7.29% 7.38% 1.55% 9.03%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net earnings attributable to AbbVie Inc. ÷ Total assets
= 100 × 4,863 ÷ 134,711 = 3.61%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to AbbVie Inc. ÷ Adjusted total assets
= 100 × 1,974 ÷ 128,956 = 1.53%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. AbbVie Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.