Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

AbbVie Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 32,293 32,156 32,379 33,124 15,604
Developed product rights 75,142 87,698 88,945 87,707 19,547
License agreements 8,191 8,474 8,487 7,828 7,798
Definite-lived intangible assets, gross carrying amount 83,333 96,172 97,432 95,535 27,345
Accumulated amortization (28,026) (29,645) (22,151) (14,536) (8,696)
Definite-lived intangible assets, net carrying amount 55,307 66,527 75,281 80,999 18,649
Indefinite-lived intangible assets 303 912 670 1,877 —
Intangible assets, net 55,610 67,439 75,951 82,876 18,649
Goodwill and intangible assets 87,903 99,595 108,330 116,000 34,253

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
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. AbbVie Inc. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. AbbVie Inc. intangible assets, net decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. AbbVie Inc. goodwill and intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

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: Goodwill 32,293 32,156 32,379 33,124 15,604
Total assets (adjusted) 102,418 106,649 114,150 117,441 73,511
Adjustment to Stockholders’ Equity (deficit)
Stockholders’ equity (deficit) (as reported) 10,360 17,254 15,408 13,076 (8,172)
Less: Goodwill 32,293 32,156 32,379 33,124 15,604
Stockholders’ equity (deficit) (adjusted) (21,933) (14,902) (16,971) (20,048) (23,776)

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 Goodwill (Summary)

AbbVie Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.40 0.42 0.38 0.30 0.37
Adjusted total asset turnover 0.53 0.54 0.49 0.39 0.45
Financial Leverage
Reported financial leverage 13.00 8.04 9.51 11.51 —
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE 46.94% 68.60% 74.91% 35.30% —
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA 3.61% 8.53% 7.88% 3.07% 8.84%
Adjusted ROA 4.75% 11.10% 10.11% 3.93% 10.72%

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 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 ROA A profitability ratio calculated as net income divided by adjusted total assets. AbbVie Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

AbbVie Inc., Financial Ratios: Reported vs. Adjusted

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 Goodwill
Selected Financial Data (US$ in millions)
Net revenues 54,318 58,054 56,197 45,804 33,266
Adjusted total assets 102,418 106,649 114,150 117,441 73,511
Activity Ratio
Adjusted total asset turnover2 0.53 0.54 0.49 0.39 0.45

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 ÷ 102,418 = 0.53

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 Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 102,418 106,649 114,150 117,441 73,511
Adjusted stockholders’ equity (deficit) (21,933) (14,902) (16,971) (20,048) (23,776)
Solvency Ratio
Adjusted financial leverage2 — — — — —

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)
= 102,418 ÷ -21,933 = —

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 Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Adjusted stockholders’ equity (deficit) (21,933) (14,902) (16,971) (20,048) (23,776)
Profitability Ratio
Adjusted ROE2 — — — — —

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 × Net earnings attributable to AbbVie Inc. ÷ Adjusted stockholders’ equity (deficit)
= 100 × 4,863 ÷ -21,933 = —

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 Goodwill
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,863 11,836 11,542 4,616 7,882
Adjusted total assets 102,418 106,649 114,150 117,441 73,511
Profitability Ratio
Adjusted ROA2 4.75% 11.10% 10.11% 3.93% 10.72%

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 × Net earnings attributable to AbbVie Inc. ÷ Adjusted total assets
= 100 × 4,863 ÷ 102,418 = 4.75%

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