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: Assets
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2012
- Total Asset Turnover since 2012
- Price to Book Value (P/BV) since 2012
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Long-term Activity Ratios (Summary)
AbbVie Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
An examination of long-term investment activity ratios reveals varying performance trends between 2021 and 2025. Generally, asset utilization appears stable with some indicators suggesting potential improvement in later periods. The analysis focuses on net fixed asset turnover, total asset turnover, and equity turnover.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a slight increase from 11.00 in 2021 to 11.76 in 2022, before declining to 10.89 in 2023. This ratio remained relatively stable through 2024 and 2025, registering 10.97 and 10.87 respectively. This suggests a consistent, though modestly fluctuating, ability to generate revenue from fixed assets.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, the net fixed asset turnover ratio followed a similar pattern to the standard calculation. It increased from 9.57 in 2021 to 10.24 in 2022, decreased to 9.47 in 2023, and then stabilized around 9.62 in 2024 and 9.61 in 2025. The inclusion of these assets results in a lower turnover ratio, indicating a greater investment in leased assets relative to revenue generated.
- Total Asset Turnover
- The total asset turnover ratio demonstrated an initial increase from 0.38 in 2021 to 0.42 in 2022, followed by a slight decrease to 0.40 in 2023. The ratio then returned to 0.42 in 2024 and increased to 0.46 in 2025. This indicates a generally improving trend in the efficiency with which all assets are used to generate sales, with the most significant improvement occurring in the final year observed.
- Equity Turnover
- The equity turnover ratio experienced substantial fluctuation. It decreased from 3.65 in 2021 to 3.36 in 2022, then increased significantly to 5.24 in 2023. A dramatic increase was observed in 2024, reaching 16.94. No value is available for 2025. This suggests a considerable change in the relationship between revenue and equity, potentially indicating increased leverage or a shift in capital structure, particularly in 2024.
Overall, the observed trends suggest a generally stable asset utilization rate, with a potential for improvement in total asset turnover in the later years. The significant change in equity turnover warrants further investigation to understand the underlying drivers of this fluctuation.
Net Fixed Asset Turnover
AbbVie Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Net revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibited a fluctuating pattern over the five-year period. While generally remaining within a relatively narrow range, subtle shifts are observable. Net revenues demonstrated an overall increasing trend, though with a dip in 2023, while property and equipment, net, showed a more gradual increase.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 11.00 in 2021 to a peak of 11.76 in 2022. This suggests improved efficiency in utilizing fixed assets to generate revenue during that period. A subsequent decline to 10.89 in 2023 coincided with a decrease in net revenues. The ratio experienced a slight recovery to 10.97 in 2024, but then decreased again to 10.87 in 2025. The ratio’s movement suggests a correlation with revenue fluctuations, but the overall change from 2021 to 2025 is minimal.
The relatively stable level of property and equipment, net, combined with the revenue fluctuations, appears to be the primary driver of the observed changes in the net fixed asset turnover ratio. The company appears to be managing its fixed asset base conservatively, with limited significant investment during the observed period. The slight increase in property and equipment, net, in 2025 may contribute to a further slight decrease in the turnover ratio if revenue growth does not accelerate.
Overall, the net fixed asset turnover ratio indicates a consistent, though not dramatically improving, ability to generate revenue from fixed assets. The fluctuations warrant continued monitoring, particularly in relation to future capital expenditure decisions and revenue performance.
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, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| 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: 2025-12-31), 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).
1 2025 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.
The net fixed asset turnover ratio, calculated using property and equipment net of accumulated depreciation and including operating lease right-of-use assets, demonstrates a generally stable performance over the five-year period. While fluctuations are present, the ratio remains within a relatively narrow range, indicating consistent efficiency in utilizing fixed assets to generate revenue.
- Net Revenues
- Net revenues experienced an initial increase from US$56,197 million in 2021 to US$58,054 million in 2022. A subsequent decrease to US$54,318 million occurred in 2023, followed by a modest recovery to US$56,334 million in 2024. The most recent year, 2025, shows a more substantial increase to US$61,160 million. This revenue pattern influences the observed turnover ratio.
- Property and Equipment (Net, including Operating Lease, Right-of-Use Asset)
- The value of property and equipment, net of accumulated depreciation and including operating lease right-of-use assets, exhibited a slight decrease from US$5,872 million in 2021 to US$5,672 million in 2022. It then showed a minor increase in 2023 to US$5,733 million, continuing to rise to US$5,857 million in 2024 and US$6,365 million in 2025. The relatively slow growth in fixed assets, compared to revenue in 2025, contributes to the turnover ratio’s performance.
- Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio peaked at 10.24 in 2022, representing the highest level of revenue generated per dollar of fixed assets during the observed period. The ratio was 9.57 in 2021, decreased slightly to 9.47 in 2023, and then stabilized at 9.62 in 2024 and 9.61 in 2025. The slight decline in 2023 coincided with the decrease in net revenues, while the subsequent stabilization and slight increase in 2024 and 2025 align with the revenue recovery. The consistency in the ratio suggests a stable relationship between revenue generation and fixed asset investment.
Overall, the analysis indicates a consistent ability to generate revenue from its fixed asset base. The fluctuations observed are largely correlated with changes in net revenues, and the ratio remains within an acceptable range, suggesting efficient asset utilization.
Total Asset Turnover
AbbVie Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Net revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally increasing trend over the observed five-year period. Initial values indicate a ratio of 0.38 in 2021, followed by an improvement to 0.42 in 2022. A slight decrease to 0.40 was noted in 2023, but the ratio recovered to 0.42 in 2024 before reaching 0.46 in 2025, representing the highest value within the analyzed timeframe.
- Total Asset Turnover Trend
- The ratio demonstrates volatility, but a clear upward trajectory is present when comparing the initial and final values. The increase from 0.38 in 2021 to 0.46 in 2025 suggests a growing efficiency in utilizing assets to generate revenue.
Concurrent changes in net revenues and total assets appear to influence the ratio. While net revenues experienced a decrease in 2023, the total asset turnover ratio only saw a modest decline. The subsequent increase in both net revenues and the ratio in 2024 and 2025 indicates a positive correlation between revenue generation and asset utilization efficiency.
- Relationship to Revenue
- The observed increase in the total asset turnover ratio in 2024 and 2025 aligns with the increase in net revenues during those periods. This suggests that the company is becoming more effective at converting its investments in assets into sales.
The fluctuations in total assets, decreasing from 146,529 in 2021 to 133,960 in 2025, may also contribute to the observed trend. A reduction in the asset base, while maintaining or increasing revenue, naturally leads to a higher asset turnover ratio.
- Impact of Asset Base
- The decreasing trend in total assets, coupled with revenue increases in later years, likely amplifies the positive effect on the total asset turnover ratio. This indicates improved operational efficiency and potentially better asset management practices.
Equity Turnover
AbbVie Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Stockholders’ equity (deficit) | ||||||
| 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: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Net revenues ÷ Stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a significant fluctuation over the observed period. Initially, the ratio decreased from 3.65 in 2021 to 3.36 in 2022, indicating a slightly reduced efficiency in generating revenue from stockholders’ equity. However, a substantial increase is then observed, with the ratio rising to 5.24 in 2023 and further escalating to 16.94 in 2024. This dramatic rise suggests a considerably improved ability to generate revenue relative to the equity base during these years.
- Equity Turnover Trend
- The equity turnover ratio initially exhibited a modest decline, followed by a period of rapid growth. The decrease from 2021 to 2022 could be attributed to revenue growth lagging behind the increase in stockholders’ equity. The subsequent surge in the ratio from 2023 to 2024 is primarily driven by a combination of increased net revenues and a significant reduction in stockholders’ equity. The absence of a value for 2025 prevents assessment of whether this high turnover rate is sustained.
The substantial decrease in stockholders’ equity from 2022 through 2025 is a key driver of the equity turnover ratio’s behavior. While net revenues generally increased over the period, the more pronounced decline in equity amplified the ratio. The negative stockholders’ equity reported for 2025, if accurate, warrants further investigation as it could indicate significant accumulated losses or substantial share repurchases/dividend distributions exceeding retained earnings.
- Revenue and Equity Relationship
- Net revenues increased from US$56,197 million in 2021 to US$61,160 million in 2025, representing an overall growth of approximately 8.8%. However, stockholders’ equity experienced a dramatic shift, moving from a positive US$15,408 million in 2021 to a negative US$3,270 million in 2025. This divergence is the primary factor influencing the observed changes in the equity turnover ratio.
The increasing equity turnover ratio, particularly the high value in 2024, should be interpreted cautiously. While a higher ratio can indicate efficient use of equity, it can also be a consequence of decreasing equity, which may signal financial distress or aggressive capital allocation strategies. Further analysis, including examination of the components of stockholders’ equity and the underlying drivers of revenue growth, is necessary to fully understand the implications of these trends.