Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

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
Cost of products sold
Gross margin
Selling, general and administrative
Research and development
Acquired IPR&D and milestones
Other operating income (expense), net
Operating earnings
Interest expense
Interest income
Interest expense, net
Net foreign exchange loss
Other expense, net
Earnings before income tax expense
Income tax (expense) benefit
Net earnings
Net earnings attributable to noncontrolling interest
Net earnings attributable to AbbVie Inc.

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.