Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2012
- Current Ratio since 2012
- Price to Earnings (P/E) since 2012
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
AbbVie Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrated a general upward trend from 8.73 in 2020 to 11.76 in 2022, indicating improved efficiency in using fixed assets to generate sales. However, a slight decline occurred in 2023 to 10.89, followed by a marginal increase to 10.97 in 2024, suggesting some stabilization in asset utilization after the peak in 2022.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric followed a similar trajectory to the net fixed asset turnover but consistently showed lower values, reflecting the inclusion of leased assets. It rose significantly from 7.46 in 2020 to 10.24 in 2022, implying enhanced operational efficiency when including right-of-use assets. The ratio then decreased to 9.47 in 2023 and slightly increased to 9.62 in 2024, mirroring the trend found in the purely fixed asset turnover metric.
- Total Asset Turnover
- Total asset turnover improved steadily from 0.30 in 2020 to 0.42 in 2022, indicating better overall asset utilization to generate revenue. Although there was a minor dip to 0.40 in 2023, the ratio returned to 0.42 by 2024, signifying a consistent capacity to effectively use total assets over the observed period.
- Equity Turnover
- The equity turnover ratio showed an irregular pattern with an initial modest increase from 3.50 in 2020 to 3.65 in 2021, followed by a decrease to 3.36 in 2022. A notable surge occurred in 2023 with the ratio rising sharply to 5.24, and an extraordinary jump in 2024 to 16.94. This dramatic increase suggests a significant change in equity utilization efficiency, possibly due to changes in equity base or sales generation efficiency that requires further investigation to understand underlying causes.
Net Fixed Asset Turnover
AbbVie Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Net revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues showed a steady increase from 45,804 million US dollars in 2020 to 58,054 million US dollars in 2022, marking a significant growth phase over these three years. However, in 2023, revenues declined to 54,318 million US dollars before recovering somewhat to 56,334 million US dollars in 2024. This pattern suggests an overall growth trend with a temporary dip in 2023, which may indicate external economic factors or company-specific challenges during that period.
- Property and Equipment, Net
- The net value of property and equipment decreased slightly from 5,248 million US dollars in 2020 to 4,935 million US dollars in 2022. It then stabilized and exhibited a marginal increase in the following two years, reaching 5,134 million US dollars in 2024. This indicates a cautious approach to capital investment or asset management, with minor fluctuations but overall maintenance of the asset base.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio improved markedly from 8.73 times in 2020 to 11.76 times in 2022, indicating increasingly efficient use of fixed assets to generate revenue. Although there was a slight decrease to 10.89 in 2023, the ratio improved again to 10.97 in 2024, maintaining a high level of asset utilization. This trend reflects strong operational efficiency in converting fixed asset investments into revenue throughout the period examined.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
AbbVie Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease assets (included in Other assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues demonstrated an overall upward trend from 2020 through 2024. Starting at 45,804 million USD in 2020, revenues increased significantly to 56,197 million USD in 2021 and continued a moderate rise to 58,054 million USD in 2022. However, a decline occurred in 2023 to 54,318 million USD, followed by a rebound to 56,334 million USD in 2024. This pattern indicates strong revenue growth initially, a slight dip in 2023, and a recovery in the subsequent year.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- The net value of property and equipment showed a gradual decrease from 6,143 million USD in 2020 to 5,672 million USD in 2022. Following this decline, a modest increase was observed, rising to 5,733 million USD in 2023 and further to 5,857 million USD in 2024. This trend suggests a period of asset divestment or depreciation in the early years, followed by stabilization and slight growth in asset base in the later years.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio improved consistently from 7.46 in 2020 to a peak of 10.24 in 2022, reflecting increased efficiency in generating revenue relative to the fixed asset base. After 2022, the ratio experienced a slight decline to 9.47 in 2023 but rebounded to 9.62 in 2024, maintaining a higher level than in 2020 and 2021. Overall, this indicates enhanced efficiency over the period despite minor fluctuations in the latter years.
Total Asset Turnover
AbbVie Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Total asset turnover = Net revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues exhibited an overall increasing trend from 2020 to 2024, starting at 45,804 million US dollars in 2020 and rising to 56,334 million US dollars in 2024. There was a notable peak in 2022 at 58,054 million, followed by a decline in 2023 to 54,318 million. The revenue rebounded slightly in 2024 but did not reach the 2022 peak. This pattern suggests variability with a general upward momentum over the five-year period.
- Total Assets
- Total assets showed a consistent downward trend over the observed years, declining from 150,565 million US dollars in 2020 to 135,161 million in 2024. This reduction indicates either asset divestiture, depreciation, or restructuring. Despite fluctuations in revenues, total assets contracted steadily, decreasing by about 10% over the period.
- Total Asset Turnover
- The total asset turnover ratio improved significantly, moving from 0.3 in 2020 to 0.42 in 2024. This indicates an enhanced efficiency in using assets to generate revenue. The ratio rose steadily, peaking at 0.42 twice, in 2022 and 2024, with a minor dip to 0.4 in 2023. The increase in turnover ratio despite falling total assets suggests improved operational efficiency or better asset utilization.
Equity Turnover
AbbVie Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Equity turnover = Net revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues demonstrate an overall upward trend from 2020 to 2024, increasing from 45,804 million US dollars in 2020 to 56,334 million US dollars in 2024. Notably, there was a peak in revenues in 2022 at 58,054 million US dollars, followed by a decline in 2023 to 54,318 million US dollars before rising again in 2024. This pattern indicates a slight fluctuation but a generally positive growth trajectory over the five-year period.
- Stockholders’ Equity
- Stockholders’ equity showed an increase from 13,076 million US dollars in 2020 to a high of 17,254 million US dollars in 2022, indicating a strengthening equity base during this period. However, there is a sharp decline in 2023 and 2024, dropping drastically to 10,360 million US dollars and further down to 3,325 million US dollars, respectively. This significant reduction suggests substantial equity erosion or changes in capital structure occurring in the most recent years.
- Equity Turnover
- Equity turnover experienced a generally increasing trend, starting at 3.5 in 2020 and remaining relatively stable through 2021 and 2022, with values of 3.65 and 3.36 respectively. A notable rise occurred in 2023, jumping to 5.24, followed by an exceptional increase in 2024 up to 16.94. This sharp increase is primarily attributable to the simultaneous decrease in stockholders’ equity while net revenues remained relatively stable, reflecting heightened efficiency in using equity to generate sales, though it may also indicate financial structure changes impacting equity levels.