Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV) 

Common-Size Income Statement

AbbVie Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net revenues 100.00 100.00 100.00 100.00 100.00
Cost of products sold -30.01 -37.58 -30.00 -31.04 -33.59
Gross margin 69.99% 62.42% 70.00% 68.96% 66.41%
Selling, general and administrative -26.19 -23.70 -26.29 -21.97 -24.67
Research and development -22.71 -14.13 -11.21 -12.61 -14.32
Acquired IPR&D and milestones -4.89 -1.43 -1.20 -1.71 -2.62
Other operating income (expense), net 0.01 0.33 -0.10 -0.77 0.00
Operating earnings 16.22% 23.49% 31.21% 31.89% 24.81%
Interest expense -4.98 -4.09 -3.84 -4.31 -5.36
Interest income 1.15 0.99 0.32 0.07 0.38
Interest expense, net -3.83% -3.10% -3.52% -4.24% -4.98%
Net foreign exchange loss -0.04 -0.27 -0.25 -0.09 -0.16
Other expense, net -5.75 -8.61 -4.22 -4.45 -12.26
Earnings before income tax expense 6.60% 11.51% 23.21% 23.11% 7.42%
Income tax (expense) benefit 1.01 -2.54 -2.81 -2.56 2.67
Net earnings 7.61% 8.97% 20.40% 20.55% 10.09%
Net earnings attributable to noncontrolling interest -0.01 -0.02 -0.02 -0.01 -0.01
Net earnings attributable to AbbVie Inc. 7.59% 8.95% 20.39% 20.54% 10.08%

Based on: 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), 10-K (reporting date: 2020-12-31).

Gross Margin and Cost of Products Sold
Gross margin experienced fluctuations over the analyzed period, starting at 66.41% of net revenues in 2020 and peaking at 70% in 2022 before dropping sharply to 62.42% in 2023 and recovering close to 70% in 2024. Correspondingly, the cost of products sold decreased from 33.59% in 2020 to 30% in 2022 but spiked significantly to 37.58% in 2023, then decreased again to 30.01% in 2024. This volatility suggests variable production efficiency or changes in product mix impacting profitability.
Operating Expenses
Selling, general, and administrative expenses, as a percentage of net revenues, demonstrated variability with a decrease from 24.67% in 2020 to a low of 21.97% in 2021 but increased thereafter, peaking at 26.29% in 2022 and remaining elevated through 2024. Research and development expenses initially declined from 14.32% in 2020 to 11.21% in 2022 but surged considerably to 22.71% by 2024, indicating increased investment in innovation or new product development. Acquired intangible assets and milestones showed a downward trend from 2.62% in 2020 to 1.2% in 2022, followed by an increase to 4.89% in 2024, implying episodic acquisition activity.
Operating Earnings
Operating earnings as a percentage of net revenues increased from 24.81% in 2020 to a peak of 31.89% in 2021 but declined thereafter, falling to 16.22% in 2024. This decline corresponds with increases in cost of products sold and operating expenses in recent years, impacting operational profitability negatively.
Interest and Foreign Exchange
Interest expense decreased from 5.36% of net revenues in 2020 to 3.84% in 2022, then rose again to 4.98% in 2024. Interest income remained low but showed a gradual increase, reaching 1.15% in 2024. The net interest expense followed this trend, tightening from 4.98% in 2020 to 3.1% in 2023 before widening to 3.83% in 2024. Net foreign exchange losses were minimal and relatively stable, declining slightly to 0.04% in 2024, indicating limited foreign currency impact.
Other Expenses
Other expenses, net, fluctuated considerably, starting at 12.26% of net revenues in 2020 and decreasing to around 4.22%-4.45% in 2021-2022 but spiking to 8.61% in 2023 before decreasing again to 5.75% in 2024. This volatility may relate to non-recurring charges or variable operational costs.
Earnings Before Income Tax and Net Earnings
Earnings before income tax expense increased significantly from 7.42% in 2020 to approximately 23.2% in 2022 but fell sharply to 6.6% in 2024. Income tax expense shifted from a benefit of 2.67% in 2020 to consistent expenses around 2.5%-2.8% in the middle years before showing a benefit of 1.01% in 2024. Net earnings followed a similar pattern as operating earnings and earnings before tax, increasing from 10.09% in 2020 to over 20% in 2021-2022 but declining to 7.59% by 2024. Net earnings attributable to the company closely match this trend, indicating stable minority interests.