Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Short-term borrowings
Current portion of long-term debt and finance lease obligations
Sales rebates
Dividends payable
Accounts payable
Current portion of contingent consideration liabilities
Salaries, wages and commissions
Royalty and license arrangements
Other
Accounts payable and accrued liabilities
Current liabilities
Long-term debt and finance lease obligations, excluding current portion
Deferred income taxes
Contingent consideration liabilities
Liabilities for unrecognized tax benefits
Income taxes payable
Pension and other post-employment benefits
Other
Other long-term liabilities
Long-term liabilities
Total liabilities
Common stock, $0.01 par value
Common stock held in treasury, at cost
Additional paid-in-capital
Retained earnings (accumulated deficit)
Accumulated other comprehensive loss
Stockholders’ equity
Noncontrolling interest
Total equity
Total liabilities and equity

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).

An examination of the provided financial information reveals notable shifts in the company’s liabilities and stockholders’ equity between 2020 and 2024. Total liabilities experienced fluctuation, while stockholders’ equity demonstrated a significant decline in recent periods.

Short-Term Liabilities
Short-term borrowings decreased substantially from 2020 to 2022, reaching a minimal value, and remained negligible through 2024. However, the current portion of long-term debt and finance lease obligations exhibited considerable volatility, peaking in 2021 before decreasing, and then increasing again in 2023 and 2024. Sales rebates consistently increased throughout the period, representing a growing obligation. Dividends payable also showed a steady upward trend. Accounts payable fluctuated, with a peak in 2023, followed by a decrease in 2024. Current portion of contingent consideration liabilities increased steadily from 2021 to 2024. Overall, current liabilities decreased from 2021 to 2022, then increased through 2024.
Long-Term Liabilities
Long-term debt and finance lease obligations, excluding the current portion, generally decreased from 2020 to 2023, before increasing in 2024. Deferred income taxes decreased from 2020 to 2023, with a slight increase in 2024. Contingent consideration liabilities consistently increased throughout the period. Liabilities for unrecognized tax benefits remained relatively stable, with a decrease in 2024. Other long-term liabilities remained relatively stable, with a slight decrease in 2024. The overall trend in long-term liabilities is a decrease from 2020 to 2023, followed by an increase in 2024.
Total Liabilities
Total liabilities decreased from 2020 to 2022, then increased in 2023 and 2024, reaching a level comparable to 2020. This suggests a period of debt reduction followed by renewed borrowing or increased obligations.
Stockholders’ Equity
Common stock remained constant throughout the period. Common stock held in treasury increased consistently, indicating share repurchases. Additional paid-in-capital increased steadily. However, retained earnings experienced a significant shift from positive values in 2020-2022 to a substantial deficit in 2023 and 2024. Accumulated other comprehensive loss remained consistently negative. Consequently, total stockholders’ equity decreased significantly from 2022 to 2024, representing a substantial erosion of equity value. Noncontrolling interest remained relatively stable.
Total Liabilities and Equity
Total liabilities and equity decreased from 2020 to 2023, then increased slightly in 2024. The decrease from 2020 to 2023 was primarily driven by the decrease in stockholders’ equity.

The substantial decline in retained earnings and overall stockholders’ equity is a key observation. While total liabilities have fluctuated, the consistent increase in certain liability accounts, coupled with the decrease in equity, warrants further investigation into the company’s profitability, dividend policy, and share repurchase activities.