AbbVie Inc. (NYSE:ABBV)

The financial data indicates a gradual decline in both total assets and adjusted total assets over the observed periods from December 31, 2020, through December 31, 2024.

Total Assets

Total assets decreased from US$150,565 million in 2020 to US$135,161 million in 2024. This reflects a reduction of approximately 10.2% over five years. The decline was consistent year over year, with the most significant drop occurring between 2021 and 2022, where total assets fell from US$146,529 million to US$138,805 million.

Adjusted Total Assets

Adjusted total assets followed a similar downward trend, declining from US$148,151 million in 2020 to US$129,535 million in 2024, representing a reduction of around 12.6%. The adjusted figures consistently remained slightly lower than the unadjusted totals, indicating adjustments that reduced the asset base as reported. The largest annual decrease was observed between 2021 and 2022, where adjusted total assets dropped by nearly US$8.5 billion.

Overall, the data suggests a contraction in the company's asset base over the five-year period, which could imply asset disposals, depreciation, amortization, or other operational adjustments impacting asset levels. The consistent decline in both reported and adjusted figures reinforces this observation. Such a trend may warrant further analysis to understand the underlying causes and their implications on financial stability and growth potential.

Total Liabilities

The total liabilities decreased from 137,468 million USD at the end of 2020 to 121,518 million USD by the end of 2022, indicating a reduction in the overall debt or financial obligations during this period. However, from 2023 onwards, total liabilities increased again, reaching 131,797 million USD by the end of 2024. This suggests a renewed accumulation of liabilities after a period of decline.

Adjusted Total Liabilities

The adjusted total liabilities show a similar pattern to total liabilities, decreasing steadily from 133,345 million USD in 2020 to 119,045 million USD in 2022. Subsequently, the adjusted figure increased to 128,982 million USD by 2024. This trend aligns with the total liabilities trend but with overall lower absolute values, likely reflecting changes after specific adjustments or exclusions.

Overall Trend Analysis

The data illustrates a significant reduction in liabilities during the initial two years, suggesting efforts to deleverage or improve financial stability. The increase in liabilities from 2023 to 2024 may indicate new financing activities or increased obligations, which could necessitate further scrutiny to understand the underlying causes and potential impacts on financial health.

Stockholders’ equity

Stockholders' equity exhibited a general upward trend from 2020 to 2022, increasing from 13,076 million USD in 2020 to a peak of 17,254 million USD in 2022. However, a significant decline occurred thereafter, with the equity decreasing sharply to 10,360 million USD in 2023 and further dropping to 3,325 million USD in 2024. This represents a substantial reduction of over 80% from the peak value in 2022 to 2024.

Adjusted total equity

Adjusted total equity followed a similar pattern, rising moderately from 14,806 million USD in 2020 to 16,740 million USD in 2022. Then, a pronounced decrease took place, with adjusted total equity nearly halving to 6,833 million USD in 2023 and plunging even further to 553 million USD by 2024. This sharp contraction indicates significant changes affecting the equity base after 2022.

Overall observations

Both stockholders' equity and adjusted total equity showed growth during the initial three-year period, possibly reflecting profitable operations, retained earnings, or capital inflows. The drastic reduction in equity values from 2023 onwards suggests major corporate events or financial adjustments, such as asset impairments, debt restructuring, or losses, which severely impacted the equity base. The magnitude of the decline in both metrics in the last two years indicates a period of considerable financial stress or restructuring.

The financial data reveals notable trends in the company's debt, equity, and capital over the five-year period ending in 2024.

Total Reported Debt

There is a clear downward trend from 2020 to 2023, with debt decreasing from $86,056 million to $59,385 million. However, in 2024, the debt rises again to $67,144 million, indicating a partial reversal of the previous years' debt reduction strategy.

Stockholders’ Equity

Equity increased steadily from 2020 through 2022, rising from $13,076 million to $17,254 million. In 2023, this reverses sharply to $10,360 million, and it declines further to $3,325 million in 2024, signaling significant erosion of shareholder value in the last two years of the period.

Total Reported Capital

Total reported capital, the sum of debt and equity, consistently declines from its peak in 2020 at $99,132 million down to $69,745 million in 2023. There is a slight increase in 2024 to $70,469 million, reflecting the concurrent increase in reported debt but offset by the decreased equity.

Adjusted Total Debt

The adjusted total debt follows a similar pattern to the reported debt, dropping from $87,063 million in 2020 to $60,286 million in 2023 before rising again to $68,019 million in 2024. This confirms the trend of debt reduction followed by renewed borrowing or debt accumulation at the end of the period.

Adjusted Total Equity

Adjusted equity increases modestly from $14,806 million in 2020 to a peak of $16,740 million in 2022. Afterward, it decreases sharply to $6,833 million in 2023 and further diminishes to $553 million in 2024, underscoring a substantial loss in adjusted shareholder equity.

Adjusted Total Capital

Adjusted total capital follows a declining trajectory from $101,869 million in 2020 to $67,119 million in 2023, mirroring the trend observed in reported capital. It experiences a moderate increase to $68,572 million in 2024, driven by the increase in adjusted debt despite the sharply reduced equity.

Overall, the data indicates a strategic reduction in debt from 2020 through 2023, accompanied by growth in equity during this period. However, starting in 2023, there is a pronounced decline in equity and a rebound in debt levels, resulting in lower overall capital. These shifts could suggest financial challenges impacting shareholder value and increased reliance on debt financing in the latter years.

The financial data reveals notable fluctuations in both net earnings attributable to AbbVie Inc. and adjusted net earnings over the five-year period from 2020 to 2024.

Net earnings attributable to AbbVie Inc.

This metric exhibits a significant increase from 4,616 million US dollars in 2020 to a peak of 11,836 million US dollars in 2022. Subsequent years show a marked decline, dropping to 4,863 million US dollars in 2023 and further decreasing to 4,278 million US dollars in 2024.

The pattern indicates strong performance and growth in the early part of the timeline, followed by a sharp downturn in profitability during the most recent two years.

Adjusted net earnings

Adjusted net earnings also demonstrate a rising trend from 3,113 million US dollars in 2020 to a peak of 10,680 million US dollars in 2021, with a slight decrease to 10,609 million US dollars in 2022. However, this is followed by a dramatic reduction to 1,834 million US dollars in 2023 before rebounding to 3,214 million US dollars in 2024.

This trend suggests considerable volatility in adjusted profitability, with adjustment factors possibly impacting the fluctuations notably post-2022. The decrease in 2023 contrasts sharply with earlier performance, while 2024 shows a partial recovery.

In summary, both net earnings and adjusted net earnings show strong growth through the early years, peaking around 2021-2022, followed by significant declines in 2023. The adjusted net earnings display greater volatility, with a substantial dip in 2023 followed by some recovery in 2024. The recent downturn could warrant a deeper investigation into the underlying causes impacting profitability during these periods.