Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

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.

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 1 14 34
Current portion of long-term debt and finance lease obligations 6,804 7,191 4,135 12,481 8,468
Sales rebates 14,304 13,627 10,717 8,254 7,188
Dividends payable 2,936 2,783 2,680 2,543 2,335
Accounts payable 2,945 3,688 2,934 2,882 2,276
Current portion of contingent consideration liabilities 2,589 1,952 1,469 1,249
Salaries, wages and commissions 1,986 1,802 1,371 1,785 1,669
Royalty and license arrangements 527 360 412 661 483
Other 6,658 6,438 5,819 5,325 6,208
Accounts payable and accrued liabilities 31,945 30,650 25,402 22,699 20,159
Current liabilities 38,749 37,841 29,538 35,194 28,661
Long-term debt and finance lease obligations, excluding current portion 60,340 52,194 59,135 64,189 77,554
Deferred income taxes 2,579 1,952 2,190 3,009 3,646
Contingent consideration liabilities 19,077 17,938 14,915 13,638 12,289
Liabilities for unrecognized tax benefits 5,049 6,681 6,502 5,970 5,680
Income taxes payable 1,261 2,182 2,985 3,442 3,847
Pension and other post-employment benefits 1,234 1,538 1,638 3,153 3,413
Other 3,508 3,988 4,615 2,498 2,378
Other long-term liabilities 30,129 32,327 30,655 28,701 27,607
Long-term liabilities 93,048 86,473 91,980 95,899 108,807
Total liabilities 131,797 124,314 121,518 131,093 137,468
Common stock, $0.01 par value 18 18 18 18 18
Common stock held in treasury, at cost (8,201) (6,533) (4,594) (3,143) (2,264)
Additional paid-in-capital 21,333 20,180 19,245 18,305 17,384
Retained earnings (accumulated deficit) (7,900) (1,000) 4,784 3,127 1,055
Accumulated other comprehensive loss (1,925) (2,305) (2,199) (2,899) (3,117)
Stockholders’ equity 3,325 10,360 17,254 15,408 13,076
Noncontrolling interest 39 37 33 28 21
Total equity 3,364 10,397 17,287 15,436 13,097
Total liabilities and equity 135,161 134,711 138,805 146,529 150,565

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).


The financial data reveals several important trends and patterns over the reviewed periods.

Short-term borrowings
The amount of short-term borrowings declined significantly from 34 million in 2020 to almost negligible values by 2022, with no data for the last two years. This suggests a reduction in reliance on short-term debt.
Current portion of long-term debt and finance lease obligations
The current portion displayed volatility, peaking in 2021 at approximately 12.5 billion before dropping in 2022 and rising again in 2023 and 2024, indicating varying short-term repayment obligations within the long-term debt structure.
Sales rebates
Sales rebates have shown a consistent and significant upward trend, nearly doubling from about 7.2 billion in 2020 to over 14.3 billion by 2024, which may reflect intensified discounting or promotional activities.
Dividends payable
Dividends payable increased steadily over the five-year period, reaching 2.9 billion in 2024, suggesting a growing commitment to shareholder returns despite fluctuations in other financial metrics.
Accounts payable and current liabilities
Both accounts payable and accrued liabilities expanded notably, with accounts payable rising from approximately 2.3 billion to nearly 3 billion in 2024. Total current liabilities fluctuated but ended higher in 2024 compared to the start, signaling an increase in short-term obligations.
Contingent consideration liabilities
These liabilities increased steadily from nil in 2020 to approximately 19.1 billion in 2024, indicating increasing obligations contingent on future events or acquisitions.
Salaries, wages, and commissions
There was an initial rise followed by a drop in 2022, but the figures recovered substantially by 2024, exceeding the 2020 level, which may reflect changes in workforce size or compensation policies.
Royalty and license arrangements
Royalty and license expenses varied, with a peak in 2021, a subsequent decrease, and a rebound in 2024. This variability may be linked to the timing of licensing agreements and revenue generation.
Long-term debt and related obligations
Long-term debt, excluding the current portion, generally declined from nearly 77.6 billion in 2020 to about 52.2 billion in 2023, but increased again to over 60.3 billion in 2024. This suggests active debt management with phases of repayment and new borrowing.
Deferred income taxes
Deferred income taxes decreased progressively until 2023 before a slight increase in 2024, possibly reflecting changes in tax strategy or timing differences in revenue and expense recognition.
Income taxes payable
Payables for income taxes declined significantly from 3.8 billion to 1.3 billion over the period, which might indicate improved tax payments or lower taxable income.
Liabilities for unrecognized tax benefits
These liabilities increased slightly through 2023, followed by a notable decline in 2024, potentially suggesting resolution of tax uncertainties or settlements.
Pension and other post-employment benefits
There was a consistent decline in pension and related liabilities from 3.4 billion in 2020 to roughly 1.2 billion by 2024, which may indicate plan funding improvements or actuarial adjustments.
Other long-term liabilities
Other long-term liabilities increased gradually until 2023, then decreased modestly in 2024, showing relative stability with minor fluctuations.
Total liabilities
Total liabilities decreased from 137.5 billion in 2020 to around 121.5 billion in 2022, then rebounded to approximately 131.8 billion in 2024, depicting a fluctuating but overall high liability level.
Equity components
Common stock and treasury stock
Common stock par value remained stable at 18 million. Treasury stock increased in cost significantly, implying ongoing share repurchases, with treasury stock cost growing from about -2.3 billion to more than -8.2 billion by 2024.
Additional paid-in capital
This component showed a steady increase, rising from 17.4 billion to 21.3 billion, reflecting capital contributions or equity issuances.
Retained earnings
Retained earnings started positive but turned negative in 2023 and further decreased in 2024 to about -7.9 billion, indicating cumulative losses or large distributions exceeding earnings.
Accumulated other comprehensive loss
The accumulated loss decreased in magnitude, moving from -3.1 billion to roughly -1.9 billion, suggesting a reduction in unrealized losses or other comprehensive negative adjustments.
Stockholders’ equity and total equity
Equity increased from 13.1 billion in 2020 to a peak of 17.3 billion in 2022, but sharply declined afterward to just over 3.3 billion in 2024, which may be attributed to negative retained earnings and increased treasury stock.
Total liabilities and equity
The total financing—sum of liabilities and equity—decreased from about 150.6 billion in 2020 to 138.8 billion in 2022, then stabilized around 135 billion in 2023 and 2024.

In summary, the data reflects a complex financial evolution characterized by fluctuating debt levels, increased short-term liabilities, consistent sales rebate growth, intensified share repurchases, and a notable deterioration in retained earnings and equity in recent years. The increase in contingent liabilities and sales rebates may warrant further attention, as well as the significant negative shift in retained earnings impacting overall shareholder equity.