Two-Component Disaggregation of ROE

AbbVie Inc., decomposition of ROE

 
ROE = ROA × Leverage
Dec 31, 2017 104.16% 7.50% 13.89
Dec 31, 2016 128.41% 9.01% 14.26
Dec 31, 2015 130.39% 9.70% 13.45
Dec 31, 2014 101.84% 6.44% 15.81
Dec 31, 2013 91.90% 14.14% 6.50

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in profitability measured by Return on Assets (ROA).

Top


Three-Component Disaggregation of ROE

AbbVie Inc., decomposition of ROE

 
ROE = Net Profit Margin × Asset Turnover × Leverage
Dec 31, 2017 104.16% 18.82% 0.40 13.89
Dec 31, 2016 128.41% 23.22% 0.39 14.26
Dec 31, 2015 130.39% 22.50% 0.43 13.45
Dec 31, 2014 101.84% 8.89% 0.72 15.81
Dec 31, 2013 91.90% 21.97% 0.64 6.50

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in profitability measured by Net Profit Margin.

Top


Five-Component Disaggregation of ROE

AbbVie Inc., decomposition of ROE

 
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Leverage
Dec 31, 2017 104.16% 0.69 0.87 31.46% 0.40 13.89
Dec 31, 2016 128.41% 0.76 0.88 34.84% 0.39 14.26
Dec 31, 2015 130.39% 0.77 0.90 32.21% 0.43 13.45
Dec 31, 2014 101.84% 0.75 0.85 14.02% 0.72 15.81
Dec 31, 2013 91.90% 0.77 0.95 29.97% 0.64 6.50

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Return on Equity (ROE) over 2017 year is the decrease in operating profitability measured by EBIT Margin.

Top


Two-Way Decomposition of ROA

AbbVie Inc., decomposition of ROA

 
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2017 7.50% 18.82% 0.40
Dec 31, 2016 9.01% 23.22% 0.39
Dec 31, 2015 9.70% 22.50% 0.43
Dec 31, 2014 6.44% 8.89% 0.72
Dec 31, 2013 14.14% 21.97% 0.64

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in profitability measured by Net Profit Margin.

Top


Four-Way Decomposition of ROA

AbbVie Inc., decomposition of ROA

 
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2017 7.50% 0.69 0.87 31.46% 0.40
Dec 31, 2016 9.01% 0.76 0.88 34.84% 0.39
Dec 31, 2015 9.70% 0.77 0.90 32.21% 0.43
Dec 31, 2014 6.44% 0.75 0.85 14.02% 0.72
Dec 31, 2013 14.14% 0.77 0.95 29.97% 0.64

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Return on Assets (ROA) over 2017 year is the decrease in operating profitability measured by EBIT Margin.

Top


Decomposition of Net Profit Margin

AbbVie Inc., decomposition of Net Profit Margin

 
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2017 18.82% 0.69 0.87 31.46%
Dec 31, 2016 23.22% 0.76 0.88 34.84%
Dec 31, 2015 22.50% 0.77 0.90 32.21%
Dec 31, 2014 8.89% 0.75 0.85 14.02%
Dec 31, 2013 21.97% 0.77 0.95 29.97%

Source: Based on data from AbbVie Inc. Annual Reports

 

The primary reason for the decrease in Net Profit Margin over 2017 year is the decrease in operating profitability measured by EBIT Margin.

Top