Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

Return on Equity (ROE)
since 2012

Microsoft Excel

Calculation

AbbVie Inc., ROE, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


The analysis of the financial data reveals significant fluctuations in net earnings attributable to the company over the observed period. Net earnings started at 5,275 million USD in 2012, followed by a decline in the subsequent two years, reaching a low of 1,774 million USD in 2014. Thereafter, the earnings demonstrated a recovery and upward trend, peaking at 11,836 million USD in 2021 before declining again in the last two years to 4,278 million USD in 2024.

Stockholders’ equity exhibits substantial variability throughout the years. Initially, equity increased moderately from 3,363 million USD in 2012 to 5,097 million USD in 2017. However, there was a marked drop into negative territory in 2018 and 2019, with balances of -8,446 million USD and -8,172 million USD, respectively. From 2020 onwards, equity recovered sharply, reaching 17,254 million USD in 2022, but then declined to 3,325 million USD in 2024.

The return on equity (ROE) figures are particularly inconsistent. The early years show exceptionally high ROE percentages, with values exceeding 100% in several years between 2012 and 2017, reflecting strong profitability relative to equity, albeit likely influenced by the lower equity base in some years. Data for 2018 and 2019 are missing, potentially due to the negative equity values during those periods. ROE resumed at more moderate levels from 2020 onwards, ranging from 35.3% to 74.91%, then falling to 46.94% in 2022 before rising again to 128.66% in 2024, indicating fluctuating but generally high returns on equity in recent years.

Net Earnings
Initial decline followed by recovery and peak in 2021, then a downward trend to 2024.
Stockholders’ Equity
Moderate growth until 2017, severe negative values in 2018-2019, strong recovery post-2019, fluctuating afterward with a decline in 2024.
Return on Equity (ROE)
Very high in early years with some missing data during negative equity periods; more stable but still variable returns from 2020, with recent upward and downward swings.

Overall, the data points to periods of financial instability marked by negative equity and missing ROE data, juxtaposed with phases of strong earnings and equity recovery. The volatility in net earnings and equity suggests underlying operational or financial restructuring events, while the high ROE values in several years indicate efficient use of equity when positive.


Comparison to Competitors

AbbVie Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

AbbVie Inc., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Health Care)

AbbVie Inc., ROE, long-term trends, comparison to industry (health care)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).