Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

AbbVie Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 46.94% = 3.61% × 13.00
Sep 30, 2023 53.86% = 4.78% × 11.26
Jun 30, 2023 67.50% = 6.42% × 10.52
Mar 31, 2023 57.14% = 5.64% × 10.14
Dec 31, 2022 68.60% = 8.53% × 8.04
Sep 30, 2022 83.83% = 9.49% × 8.84
Jun 30, 2022 86.24% = 8.83% × 9.77
Mar 31, 2022 76.64% = 8.71% × 8.80
Dec 31, 2021 74.91% = 7.88% × 9.51
Sep 30, 2021 55.60% = 5.06% × 10.99
Jun 30, 2021 53.01% = 4.50% × 11.77
Mar 31, 2021 37.63% = 3.43% × 10.98
Dec 31, 2020 35.30% = 3.07% × 11.51
Sep 30, 2020 48.34% = 4.93% × 9.80
Jun 30, 2020 47.30% = 4.65% × 10.17
Mar 31, 2020 — = 9.25% × —
Dec 31, 2019 — = 8.84% × —
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

AbbVie Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 46.94% = 8.95% × 0.40 × 13.00
Sep 30, 2023 53.86% = 11.81% × 0.40 × 11.26
Jun 30, 2023 67.50% = 15.50% × 0.41 × 10.52
Mar 31, 2023 57.14% = 13.37% × 0.42 × 10.14
Dec 31, 2022 68.60% = 20.39% × 0.42 × 8.04
Sep 30, 2022 83.83% = 23.19% × 0.41 × 8.84
Jun 30, 2022 86.24% = 22.04% × 0.40 × 9.77
Mar 31, 2022 76.64% = 22.00% × 0.40 × 8.80
Dec 31, 2021 74.91% = 20.54% × 0.38 × 9.51
Sep 30, 2021 55.60% = 13.66% × 0.37 × 10.99
Jun 30, 2021 53.01% = 12.40% × 0.36 × 11.77
Mar 31, 2021 37.63% = 10.28% × 0.33 × 10.98
Dec 31, 2020 35.30% = 10.08% × 0.30 × 11.51
Sep 30, 2020 48.34% = 18.16% × 0.27 × 9.80
Jun 30, 2020 47.30% = 19.20% × 0.24 × 10.17
Mar 31, 2020 — = 24.77% × 0.37 × —
Dec 31, 2019 — = 23.69% × 0.37 × —
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

AbbVie Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 3.61% = 8.95% × 0.40
Sep 30, 2023 4.78% = 11.81% × 0.40
Jun 30, 2023 6.42% = 15.50% × 0.41
Mar 31, 2023 5.64% = 13.37% × 0.42
Dec 31, 2022 8.53% = 20.39% × 0.42
Sep 30, 2022 9.49% = 23.19% × 0.41
Jun 30, 2022 8.83% = 22.04% × 0.40
Mar 31, 2022 8.71% = 22.00% × 0.40
Dec 31, 2021 7.88% = 20.54% × 0.38
Sep 30, 2021 5.06% = 13.66% × 0.37
Jun 30, 2021 4.50% = 12.40% × 0.36
Mar 31, 2021 3.43% = 10.28% × 0.33
Dec 31, 2020 3.07% = 10.08% × 0.30
Sep 30, 2020 4.93% = 18.16% × 0.27
Jun 30, 2020 4.65% = 19.20% × 0.24
Mar 31, 2020 9.25% = 24.77% × 0.37
Dec 31, 2019 8.84% = 23.69% × 0.37
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.