Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

AbbVie Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Short-term borrowings 1.87 0.00 0.00 0.00 0.01
Current portion of long-term debt and finance lease obligations 4.52 5.03 5.34 2.98 8.52
Sales rebates 10.88 10.58 10.12 7.72 5.63
Accounts payable 2.68 2.18 2.74 2.11 1.97
Current portion of contingent consideration liabilities 2.58 1.92 1.45 1.06 0.85
Dividends payable 2.31 2.17 2.07 1.93 1.74
Salaries, wages and commissions 1.66 1.47 1.34 0.99 1.22
Royalty and license arrangements 0.34 0.39 0.27 0.30 0.45
Other 5.48 4.93 4.78 4.19 3.63
Accounts payable and accrued liabilities 25.93% 23.63% 22.75% 18.30% 15.49%
Current liabilities 32.31% 28.67% 28.09% 21.28% 24.02%
Long-term debt and finance lease obligations, excluding current portion 44.00 44.64 38.75 42.60 43.81
Deferred income taxes 1.78 1.91 1.45 1.58 2.05
Contingent consideration liabilities 16.36 14.11 13.32 10.75 9.31
Liabilities for unrecognized tax benefits 4.16 3.74 4.96 4.68 4.07
Pension and other post-employment benefits 1.05 0.91 1.14 1.18 2.15
Income taxes payable 0.27 0.93 1.62 2.15 2.35
Other 2.47 2.60 2.96 3.32 1.70
Other long-term liabilities 24.31% 22.29% 24.00% 22.08% 19.59%
Long-term liabilities 70.09% 68.84% 64.19% 66.27% 65.45%
Total liabilities 102.41% 97.51% 92.28% 87.55% 89.47%
Common stock, $0.01 par value 0.01 0.01 0.01 0.01 0.01
Common stock held in treasury, at cost -6.83 -6.07 -4.85 -3.31 -2.14
Additional paid-in-capital 16.79 15.78 14.98 13.86 12.49
Retained earnings (accumulated deficit) -11.57 -5.84 -0.74 3.45 2.13
Accumulated other comprehensive loss -0.85 -1.42 -1.71 -1.58 -1.98
Stockholders’ equity (deficit) -2.44% 2.46% 7.69% 12.43% 10.52%
Noncontrolling interest 0.03 0.03 0.03 0.02 0.02
Total equity (deficit) -2.41% 2.49% 7.72% 12.45% 10.53%
Total liabilities and equity (deficit) 100.00% 100.00% 100.00% 100.00% 100.00%

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 composition of liabilities and stockholders’ equity experienced notable shifts between 2021 and 2025. Overall, the proportion of total liabilities increased significantly, while stockholders’ equity decreased, culminating in a negative equity position by 2025.

Current Liabilities
Current liabilities as a percentage of total liabilities and equity initially decreased from 24.02% in 2021 to 21.28% in 2022, then increased steadily to 32.31% in 2025. This rise was primarily driven by increases in accounts payable and accrued liabilities, sales rebates, and the current portion of contingent consideration liabilities. Specifically, sales rebates more than doubled over the period, growing from 5.63% to 10.88%, while accounts payable and accrued liabilities increased from 15.49% to 25.93%.
Long-Term Liabilities
Long-term liabilities remained relatively stable between 2021 and 2023, fluctuating around 64-66% of the total. However, they increased to 68.84% in 2024 and 70.09% in 2025. This increase was largely attributable to growth in contingent consideration liabilities, which rose from 9.31% in 2021 to 16.36% in 2025, and other long-term liabilities, increasing from 19.59% to 24.31% over the same period. Long-term debt and finance lease obligations, excluding the current portion, showed a slight increase from 43.81% to 44.64% in 2024 before decreasing to 44.00% in 2025.
Total Liabilities
Total liabilities increased from 89.47% of the total in 2021 to 102.41% in 2025. This substantial increase indicates a growing reliance on debt financing and other obligations. The proportion of total liabilities exceeded total equity starting in 2024.
Stockholders’ Equity
Stockholders’ equity exhibited a consistent decline throughout the period. Beginning at 10.53% in 2021, it decreased to a negative 2.41% in 2025. This decline was primarily driven by a significant decrease in retained earnings, which moved from a positive 2.13% in 2021 to a negative 11.57% in 2025. The common stock held in treasury also increased as a negative value, from -2.14% to -6.83%, further contributing to the reduction in equity. While additional paid-in-capital increased steadily, it was insufficient to offset the declines in retained earnings and treasury stock. Accumulated other comprehensive loss remained relatively stable, but negative, throughout the period.
Specific Liability Items
Short-term borrowings were minimal for most of the period, but increased to 1.87% in 2025. Dividends payable showed a consistent, albeit modest, increase from 1.74% to 2.31%. Income taxes payable decreased significantly from 2.35% in 2021 to 0.27% in 2025.

In summary, the balance sheet demonstrates a clear trend of increasing liabilities and decreasing equity. The company’s financial structure has become increasingly reliant on debt, culminating in a negative equity position by the end of 2025. The growth in sales rebates and contingent consideration liabilities are particularly noteworthy.

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