AbbVie Inc. (NYSE:ABBV)

The analysis of the annual financial data reveals several noteworthy trends in the composition of the company's assets over the observed periods from the end of 2020 through 2024.

Cash and equivalents

This category shows a fluctuating pattern, initially increasing from 5.61% in 2020 to a peak of 9.51% in 2023, followed by a substantial decline to 4.09% in 2024. This indicates a higher liquidity buffer maintained up to 2023, which then significantly reduced in the subsequent year.

Short-term investments

Short-term investments remain minimal throughout the periods, hovering near zero with minor oscillations. This suggests a limited focus or reliance on short-term investment holdings.

Accounts receivable, net

Accounts receivable as a percentage of total assets steadily rose from 5.86% in 2020 to a high of 8.28% in 2023 before slightly decreasing to 8.08% in 2024. This upward trend points to an increasing portion of assets tied up in receivables, potentially reflecting growth in sales or changes in credit terms.

Inventories

There is a gradual increase in inventories, from 2.2% in 2020 to 3.09% in 2024. The steady rise suggests expanding inventory holdings, which may be aligned with business growth or strategic stockpiling.

Prepaid expenses and other current assets

This component shows moderate growth from 2.37% in 2020 to approximately 3.65% in 2024, indicating an increased amount of expenses paid in advance or other current asset considerations.

Current assets

Current assets as a whole grow from 16.05% in 2020 to a peak of 24.5% in 2023, before declining to 18.93% in 2024. The increase aligns with the growth seen in cash equivalents and accounts receivable, followed by a reduction possibly influenced by the sharp decline in cash holdings in 2024.

Investments

Long-term investments maintain a very stable and low proportion between 0.17% and 0.23%, signifying a consistent but minor role in the asset structure.

Property and equipment, net

This asset category exhibits a slight but steady increase from 3.49% in 2020 to 3.8% in 2024, reflecting ongoing investment or maintenance in tangible fixed assets.

Intangible assets, net

The proportion of intangible assets steadily decreases from a high of 55.04% in 2020 to 41.28% in 2023, with a modest recovery to 44.44% in 2024. This downward trend might indicate amortization, impairment, or strategic write-offs over the years, with some stabilization seen in the latest year.

Goodwill

In contrast, goodwill shows a progressive increase from 22% in 2020 to 25.86% in 2024, suggesting acquisitions or revaluations that enhance this asset category.

Other assets

Other assets grow consistently from 3.22% in 2020 to 6.76% in 2024, indicating increased diversification or capitalization of items not classified elsewhere.

Long-term assets

The total share of long-term assets declines from 83.95% in 2020 to 75.5% in 2023 and rebounds to 81.07% in 2024. This reflects the interplay of the previously described trends, including decreases in intangible assets and rebounds in goodwill and other assets.

Overall asset structure

The total assets consistently represent 100%, with notable shifts in the balance between current and long-term assets. While long-term assets constitute the majority, their proportion experienced a dip in 2023, coinciding with peak current assets percentage, before reversing in 2024.