AbbVie Inc. (NYSE:ABBV)

The financial data reveals notable fluctuations and trends in debt levels, equity, and leverage ratios over the analyzed period.

Total Debt and Finance Lease Obligations

The company's total debt shows a generally increasing trajectory from 2012 through 2014, followed by a significant jump in 2015. From 2015 onwards, debt levels remain elevated, peaking sharply in 2020 at 86,056 million US dollars. Subsequently, there is a decline over the next two years, reaching 59,385 million by 2023, before rising again in 2024 to 67,144 million. This pattern suggests periods of substantial borrowing possibly related to major financing or acquisition activities, with some deleveraging occurring post-2020 before renewed borrowing in 2024.

Stockholders’ Equity (Deficit)

Stockholders’ equity exhibits high volatility across the period. An initial increase is observable from 3,363 million in 2012 to 5,097 million by 2017. However, a dramatic shift into negative equity occurs in 2018 and 2019, with deficits of -8,446 million and -8,172 million respectively, implying possible write-downs, losses, or other equity-reducing events. Equity then recovers strongly to positive values from 2020 onwards, reaching a peak of 17,254 million in 2022 before declining to 3,325 million in 2024. This volatility impacts financial stability and may influence future capital structure decisions.

Debt to Equity Ratio

The debt to equity ratio fluctuates considerably and reflects the above changes in debt and equity. Early years show high ratios, with a peak of 8.62 in 2014, indicating substantial leverage. The ratio decreases moderately from 2016 to 2018, but data for 2017 through 2019 is partially missing. By 2020 and 2021, the ratio declines further to 4.98 and 3.67 respectively, signaling reduced leverage. However, the ratio increases significantly again in 2023 and peaks at 20.19 in 2024, corresponding with the equity decline and increased debt, highlighting a much higher risk profile due to increased leverage.

Overall, the company experienced substantial debt increases coinciding with volatile equity levels, leading to significant variations in leverage. The pronounced rise in leverage in the most recent year suggests heightened financial risk, potentially requiring attention to capital management strategies. Periods of equity deficits warrant further scrutiny, as they indicate episodes of financial distress or major restructuring events. The data reflects a cyclical pattern of leveraging and deleveraging, likely influenced by strategic financial decisions.