Common-Size Income Statement
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2012
- Total Asset Turnover since 2012
- Price to Book Value (P/BV) since 2012
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AbbVie Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals significant fluctuations in profitability and expense management over the five-year period. Net revenues are consistently represented as 100%, allowing for a clear comparison of expense and earnings components as percentages of sales. A notable trend is the volatility in operating performance, driven by changes in both cost of goods sold and operating expenses.
- Gross Profitability
- Gross margin initially improved from 68.96% in 2021 to 70.00% in 2022, indicating enhanced production efficiency or pricing power. However, it declined substantially to 62.42% in 2023, before partially recovering to 69.99% in 2024 and 70.24% in 2025. This suggests potential challenges in managing production costs in 2023, followed by corrective actions or favorable shifts in the cost structure.
- Operating Expenses
- Selling, general, and administrative expenses increased from 21.97% to 26.29% of net revenues between 2021 and 2022, then decreased to 23.70% in 2023, increased again to 26.19% in 2024, and decreased to 22.91% in 2025. This indicates fluctuating control over these expenses. Research and development expenses also exhibited an increasing trend, rising from 12.61% in 2021 to 22.71% in 2024, before decreasing to 14.87% in 2025. The most substantial increase was observed in acquired IPR&D and milestones, growing from 1.71% to 8.20% over the period, suggesting increased reliance on external innovation or larger acquisition-related costs. These expense increases collectively contributed to the decline in operating earnings.
- Operating Performance
- Operating earnings as a percentage of net revenues decreased significantly from 31.89% in 2021 to 16.22% in 2024, before recovering somewhat to 24.65% in 2025. This decline reflects the combined impact of increased cost of products sold and operating expenses. The fluctuations in other operating income (expense), net, while relatively small, shifted from negative to positive, contributing marginally to the overall operating performance.
- Non-Operating Items & Net Earnings
- Interest expense remained relatively stable as a percentage of net revenues, fluctuating between 3.52% and 4.98%. Interest income showed some volatility, peaking at 1.15% in 2024. Other expense, net, experienced a significant increase in 2023 (8.61%) and 2025 (9.47%), negatively impacting earnings before income tax. The income tax rate also fluctuated considerably, moving from an expense of 2.56% to a benefit of 1.01% in 2024, and then back to an expense of 3.87% in 2025. Consequently, net earnings declined from 20.55% in 2021 to 6.92% in 2025, demonstrating a substantial reduction in overall profitability.
In summary, the period was characterized by increasing expenses, particularly in research and development and acquired IPR&D, coupled with fluctuations in the cost of products sold and other expenses. These factors led to a significant decrease in net earnings as a percentage of net revenues, despite some recovery in operating performance in the final year of the analyzed period.