Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
AbbVie Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
The solvency profile exhibits a significant shift from relative stability to extreme leverage, particularly beginning in 2024. While debt relative to total assets remains consistent, the reliance on debt relative to equity has accelerated sharply, indicating a fundamental change in the capital structure.
- Debt to Equity Ratio
- A period of relative stability was observed between March 2022 and December 2022, with the ratio fluctuating between 3.67 and 4.98. A steady increase followed throughout 2023, ending the year at 5.73. Starting in March 2024, the ratio experienced exponential growth, escalating from 9.24 to 49.22 by March 2025, which reflects a substantial decrease in equity relative to total debt obligations.
- Debt to Capital Ratio
- The ratio remained largely consistent between 0.79 and 0.85 from early 2022 through late 2023. A gradual upward trend emerged in 2024 and continued through June 2026, where the ratio reached 1.09. This trend indicates a persistent increase in the proportion of debt used to finance the total capital base.
- Debt to Assets Ratio
- In contrast to equity-based metrics, the debt to assets ratio demonstrates minimal volatility. Values remained within a narrow range of 0.44 to 0.53 across the entire period. This suggests that the expansion of total assets has largely mirrored the increase in debt, maintaining a stable coverage ratio despite the volatility seen in other solvency indicators.
- Financial Leverage
- Financial leverage followed a trajectory closely aligned with the debt-to-equity ratio. After a period of moderate growth from 8.80 in March 2022 to 13.00 in December 2023, the ratio surged aggressively. Leverage increased from 18.59 in March 2024 to a peak of 95.89 by March 2025, signaling a heightened risk profile and a significant increase in the multiplier effect of debt financing.
AI Ask an analyst for more
Debt Ratios
Debt to Equity
AbbVie Inc., debt to equity calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term borrowings | —) | —) | 2,499) | 3,790) | 5,556) | 1,593) | —) | —) | —) | 3) | —) | 2) | —) | 1) | 1) | 10) | 17) | 12) | ||||||
| Current portion of long-term debt | 8,341) | 8,326) | 6,056) | 1,982) | 1,966) | 3,769) | 6,804) | 12,570) | 12,586) | 10,193) | 7,191) | 5,113) | 5,203) | 2,800) | 4,135) | 9,197) | 11,913) | 9,940) | ||||||
| Long-term debt, excluding current portion | 62,481) | 64,532) | 58,941) | 62,971) | 62,959) | 64,527) | 60,340) | 58,509) | 58,048) | 63,805) | 52,194) | 55,631) | 55,812) | 59,292) | 59,135) | 60,399) | 61,002) | 63,522) | ||||||
| Total debt | 70,822) | 72,858) | 67,496) | 68,743) | 70,481) | 69,889) | 67,144) | 71,079) | 70,634) | 74,001) | 59,385) | 60,746) | 61,015) | 62,093) | 63,271) | 69,606) | 72,932) | 73,474) | ||||||
| Stockholders’ equity (deficit) | (5,935) | (6,656) | (3,270) | (2,642) | (183) | 1,420) | 3,325) | 6,032) | 6,778) | 8,007) | 10,360) | 12,094) | 12,866) | 13,274) | 17,254) | 15,994) | 14,653) | 16,283) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 4.90 | 6.24 | 6.31 | 5.67 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | ||||||
| Bristol-Myers Squibb Co. | 1.93 | 2.22 | 2.44 | 2.64 | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | ||||||
| Danaher Corp. | 0.51 | 0.35 | 0.35 | 0.33 | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | ||||||
| Eli Lilly & Co. | 1.62 | 1.39 | 1.60 | 1.79 | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | ||||||
| Gilead Sciences Inc. | 2.22 | 0.94 | 1.10 | 1.16 | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | ||||||
| Johnson & Johnson | 0.58 | 0.68 | 0.59 | 0.58 | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | ||||||
| Merck & Co. Inc. | 1.29 | 1.07 | 0.94 | 0.80 | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | ||||||
| Pfizer Inc. | 0.74 | 0.72 | 0.75 | 0.66 | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | ||||||
| Thermo Fisher Scientific Inc. | 0.81 | 0.83 | 0.74 | 0.70 | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 70,822 ÷ -5,935 = —
2 Click competitor name to see calculations.
The financial trajectory between March 2022 and June 2026 is characterized by a significant deterioration in solvency metrics, primarily driven by a sustained reduction in stockholders' equity and fluctuating levels of total debt. While total debt exhibited periods of volatility and moderate decline, the equity position transitioned from a positive balance to a substantial deficit, resulting in an exponential increase in the debt-to-equity ratio before the metric became mathematically non-applicable.
- Total Debt Trends
- Total debt showed an initial downward trend from March 2022, where it stood at 73,474 million US$, decreasing to 59,385 million US$ by December 2023. A sharp increase occurred in March 2024, with debt rising to 74,001 million US$. For the remainder of the period through June 2026, the debt levels remained elevated, fluctuating between 67,144 million US$ and 72,858 million US$, indicating a stabilization of high leverage rather than a commitment to debt reduction.
- Equity Erosion and Deficit Transition
- A consistent and accelerating decline in stockholders' equity is observed throughout the analyzed timeframe. Starting at 16,283 million US$ in March 2022, equity steadily diminished to 10,360 million US$ by the end of 2023. The decline accelerated sharply during 2024, dropping to 3,325 million US$ by December 31, 2024. By June 30, 2025, the company entered a deficit position of -183 million US$, which widened further to a peak deficit of -6,656 million US$ in March 2026, ending the period at -5,935 million US$.
- Debt to Equity Ratio Dynamics
- The debt-to-equity ratio remained relatively stable between 3.67 and 5.73 from March 2022 through December 2023. However, as equity continued to collapse in 2024, the ratio experienced exponential growth, rising from 9.24 in March 2024 to 49.22 by December 31, 2024. Following this point, the ratio is no longer reported, coinciding with the transition of stockholders' equity into negative territory, which renders the standard debt-to-equity calculation meaningless for solvency analysis.
AI Ask an analyst for more
Debt to Capital
AbbVie Inc., debt to capital calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term borrowings | —) | —) | 2,499) | 3,790) | 5,556) | 1,593) | —) | —) | —) | 3) | —) | 2) | —) | 1) | 1) | 10) | 17) | 12) | ||||||
| Current portion of long-term debt | 8,341) | 8,326) | 6,056) | 1,982) | 1,966) | 3,769) | 6,804) | 12,570) | 12,586) | 10,193) | 7,191) | 5,113) | 5,203) | 2,800) | 4,135) | 9,197) | 11,913) | 9,940) | ||||||
| Long-term debt, excluding current portion | 62,481) | 64,532) | 58,941) | 62,971) | 62,959) | 64,527) | 60,340) | 58,509) | 58,048) | 63,805) | 52,194) | 55,631) | 55,812) | 59,292) | 59,135) | 60,399) | 61,002) | 63,522) | ||||||
| Total debt | 70,822) | 72,858) | 67,496) | 68,743) | 70,481) | 69,889) | 67,144) | 71,079) | 70,634) | 74,001) | 59,385) | 60,746) | 61,015) | 62,093) | 63,271) | 69,606) | 72,932) | 73,474) | ||||||
| Stockholders’ equity (deficit) | (5,935) | (6,656) | (3,270) | (2,642) | (183) | 1,420) | 3,325) | 6,032) | 6,778) | 8,007) | 10,360) | 12,094) | 12,866) | 13,274) | 17,254) | 15,994) | 14,653) | 16,283) | ||||||
| Total capital | 64,887) | 66,202) | 64,226) | 66,101) | 70,298) | 71,309) | 70,469) | 77,111) | 77,412) | 82,008) | 69,745) | 72,840) | 73,881) | 75,367) | 80,525) | 85,600) | 87,585) | 89,757) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 1.09 | 1.10 | 1.05 | 1.04 | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 0.83 | 0.86 | 0.86 | 0.85 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | ||||||
| Bristol-Myers Squibb Co. | 0.66 | 0.69 | 0.71 | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | ||||||
| Danaher Corp. | 0.34 | 0.26 | 0.26 | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | ||||||
| Eli Lilly & Co. | 0.62 | 0.58 | 0.62 | 0.64 | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | ||||||
| Gilead Sciences Inc. | 0.69 | 0.49 | 0.52 | 0.54 | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | ||||||
| Johnson & Johnson | 0.37 | 0.40 | 0.37 | 0.37 | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | ||||||
| Merck & Co. Inc. | 0.56 | 0.52 | 0.48 | 0.44 | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | ||||||
| Pfizer Inc. | 0.43 | 0.42 | 0.43 | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | ||||||
| Thermo Fisher Scientific Inc. | 0.45 | 0.45 | 0.42 | 0.41 | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 70,822 ÷ 64,887 = 1.09
2 Click competitor name to see calculations.
The solvency profile exhibits a notable shift in leverage dynamics over the period from March 2022 to June 2026. While the capital structure remained relatively stable through 2023, a significant and consistent upward trend in the debt-to-capital ratio emerged starting in the first quarter of 2024.
- Total Debt and Capital Trends
- Total debt underwent an initial period of reduction, falling from 73,474 million USD in March 2022 to a low of 59,385 million USD by December 2023. A sharp reversal occurred in March 2024, with debt increasing to 74,001 million USD, subsequently fluctuating between 67,144 million USD and 72,858 million USD through June 2026. Total capital showed a more persistent long-term decline, decreasing from 89,757 million USD in March 2022 to 64,887 million USD by the end of the period.
- Debt to Capital Ratio Analysis
- The debt-to-capital ratio remained within a narrow band of 0.79 to 0.85 between March 2022 and December 2023. Beginning in March 2024, the ratio entered a phase of steady escalation, rising from 0.90 to a peak of 1.10 in March 2026. A critical threshold was crossed in June 2025, where the ratio reached 1.00, indicating that total debt had become equal to total capital.
The progression of the debt-to-capital ratio above 1.00 in the latter half of the observed period suggests a significant contraction of the equity base relative to total liabilities. This trend indicates an increasing reliance on leverage to sustain operations or fund investments, resulting in a weakened solvency position by June 2026.
AI Ask an analyst for more
Debt to Assets
AbbVie Inc., debt to assets calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Short-term borrowings | —) | —) | 2,499) | 3,790) | 5,556) | 1,593) | —) | —) | —) | 3) | —) | 2) | —) | 1) | 1) | 10) | 17) | 12) | ||||||
| Current portion of long-term debt | 8,341) | 8,326) | 6,056) | 1,982) | 1,966) | 3,769) | 6,804) | 12,570) | 12,586) | 10,193) | 7,191) | 5,113) | 5,203) | 2,800) | 4,135) | 9,197) | 11,913) | 9,940) | ||||||
| Long-term debt, excluding current portion | 62,481) | 64,532) | 58,941) | 62,971) | 62,959) | 64,527) | 60,340) | 58,509) | 58,048) | 63,805) | 52,194) | 55,631) | 55,812) | 59,292) | 59,135) | 60,399) | 61,002) | 63,522) | ||||||
| Total debt | 70,822) | 72,858) | 67,496) | 68,743) | 70,481) | 69,889) | 67,144) | 71,079) | 70,634) | 74,001) | 59,385) | 60,746) | 61,015) | 62,093) | 63,271) | 69,606) | 72,932) | 73,474) | ||||||
| Total assets | 135,115) | 136,463) | 133,960) | 133,898) | 137,182) | 136,165) | 135,161) | 143,422) | 141,937) | 148,874) | 134,711) | 136,221) | 135,367) | 134,544) | 138,805) | 141,325) | 143,186) | 143,211) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.52 | 0.53 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 0.60 | 0.62 | 0.60 | 0.61 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | ||||||
| Bristol-Myers Squibb Co. | 0.49 | 0.51 | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | ||||||
| Danaher Corp. | 0.29 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | ||||||
| Eli Lilly & Co. | 0.39 | 0.37 | 0.38 | 0.37 | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | ||||||
| Gilead Sciences Inc. | 0.53 | 0.39 | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | ||||||
| Johnson & Johnson | 0.24 | 0.27 | 0.24 | 0.24 | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | ||||||
| Merck & Co. Inc. | 0.42 | 0.38 | 0.36 | 0.32 | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | ||||||
| Pfizer Inc. | 0.31 | 0.31 | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | ||||||
| Regeneron Pharmaceuticals Inc. | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | ||||||
| Thermo Fisher Scientific Inc. | 0.38 | 0.38 | 0.36 | 0.35 | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | ||||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 70,822 ÷ 135,115 = 0.52
2 Click competitor name to see calculations.
The solvency profile over the analyzed period exhibits two distinct phases: a period of deleveraging followed by a stabilization of leverage levels at a higher baseline. The debt to assets ratio initially decreased from 0.51 in the first quarter of 2022 to a low of 0.44 by the end of 2023, before reverting to a range between 0.50 and 0.53 throughout 2024, 2025, and the first half of 2026.
- Deleveraging Trend (March 2022 – December 2023)
- A consistent reduction in total debt is observed during this interval, with obligations falling from 73,474 million US$ to 59,385 million US$. Although total assets also experienced a general decline during this period, the reduction in debt occurred at a faster rate, resulting in a gradual improvement of the solvency ratio from 0.51 to 0.44.
- Leverage Rebound (March 2024)
- A significant shift occurred in the first quarter of 2024, characterized by a sharp increase in total debt to 74,001 million US$. This surge was accompanied by a peak in total assets at 148,874 million US$, which effectively reset the debt to assets ratio to 0.50, erasing the gains made during the previous deleveraging phase.
- Stabilization and Marginal Increase (March 2024 – June 2026)
- Following the volatility of early 2024, the debt to assets ratio remained remarkably stable, hovering between 0.50 and 0.51 for two years. However, a slight upward trajectory is noted in the first half of 2026, where the ratio reached a peak of 0.53 in March 2026 before settling at 0.52 in June 2026, indicating a marginal increase in the proportion of assets financed through debt.
AI Ask an analyst for more
Financial Leverage
AbbVie Inc., financial leverage calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 135,115) | 136,463) | 133,960) | 133,898) | 137,182) | 136,165) | 135,161) | 143,422) | 141,937) | 148,874) | 134,711) | 136,221) | 135,367) | 134,544) | 138,805) | 141,325) | 143,186) | 143,211) | ||||||
| Stockholders’ equity (deficit) | (5,935) | (6,656) | (3,270) | (2,642) | (183) | 1,420) | 3,325) | 6,032) | 6,778) | 8,007) | 10,360) | 12,094) | 12,866) | 13,274) | 17,254) | 15,994) | 14,653) | 16,283) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Amgen Inc. | 8.18 | 10.07 | 10.46 | 9.37 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | ||||||
| Bristol-Myers Squibb Co. | 3.93 | 4.31 | 4.87 | 5.22 | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | ||||||
| Danaher Corp. | 1.76 | 1.58 | 1.59 | 1.56 | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | ||||||
| Eli Lilly & Co. | 4.20 | 3.74 | 4.24 | 4.83 | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | ||||||
| Gilead Sciences Inc. | 4.17 | 2.39 | 2.60 | 2.72 | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | ||||||
| Johnson & Johnson | 2.37 | 2.47 | 2.44 | 2.43 | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | ||||||
| Merck & Co. Inc. | 3.10 | 2.80 | 2.60 | 2.50 | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | ||||||
| Pfizer Inc. | 2.36 | 2.30 | 2.41 | 2.25 | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | ||||||
| Regeneron Pharmaceuticals Inc. | 1.32 | 1.30 | 1.30 | 1.30 | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | ||||||
| Thermo Fisher Scientific Inc. | 2.15 | 2.18 | 2.07 | 2.02 | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | ||||||
| Vertex Pharmaceuticals Inc. | 1.35 | 1.37 | 1.37 | 1.44 | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 135,115 ÷ -5,935 = —
2 Click competitor name to see calculations.
A comprehensive analysis of the financial structure reveals a significant deterioration in the equity base relative to total assets over the observed period. While total assets remained relatively stable, fluctuating within a range of approximately US$ 133 billion to US$ 148 billion, stockholders' equity exhibited a consistent and accelerating downward trend.
- Equity Erosion and Deficit Transition
- Stockholders' equity experienced a steady decline from US$ 16.28 billion in March 2022 to US$ 3.32 billion by December 2024. A critical shift occurred in June 2025, when the equity balance transitioned into a deficit of US$ 183 million. This negative trajectory continued through June 2026, with the deficit widening to US$ 5.93 billion, indicating that total liabilities exceeded total assets.
- Acceleration of Financial Leverage
- The financial leverage ratio remained relatively contained between 8.04 and 11.26 from March 2022 through September 2023. However, starting in December 2023, the ratio began to escalate rapidly. Between March 2024 and March 2025, the ratio surged from 18.59 to 95.89. This exponential increase is a direct mathematical result of the equity base approaching zero while the asset base remained constant.
- Solvency Implications
- The transition to negative equity and the extreme spike in the leverage ratio denote a highly leveraged capital structure. The cessation of leverage ratio reporting after March 2025 coincides with the emergence of a stockholders' deficit, as the ratio becomes fundamentally altered when equity turns negative. The data suggests a systemic reduction in the company's solvency margin over the analyzed timeframe.
AI Ask an analyst for more