AbbVie Inc. (NYSE:ABBV)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a generally stable but slightly declining trend over the quarters analyzed. Starting at 9.67, the ratio increased steadily, reaching a peak of 11.82 in the third quarter of 2022. After this peak, the ratio experienced a gradual decline, dropping to 10.88 by the third quarter of 2025. This pattern suggests that the company initially improved its efficiency in generating sales from its fixed assets but faced a reduction in this efficiency in more recent periods.

Total Asset Turnover

Total asset turnover displayed a moderate upward trend throughout the time frame, beginning at 0.33 and increasing progressively to 0.45 by the third quarter of 2025. There were minor fluctuations, with slight decreases observed around 2023 and early 2024, but overall the ratio improved, indicating increased effectiveness in utilizing total assets to generate revenue.

Equity Turnover

The equity turnover ratio showed significant volatility and a remarkable upward trend over the periods. Initially fluctuating between 3.36 and 4.56 during the earlier quarters, it escalated dramatically starting from the first quarter of 2024, reaching as high as 40.4 by the second quarter of 2025. The data for the last quarter of 2025 are missing. This substantial increase suggests a significant acceleration in the volume of sales generated per unit of equity, potentially reflective of either an increase in sales or changes in equity levels. The pronounced spike in the final quarters requires further examination to understand underlying factors contributing to this sharp rise.

The analysis of the quarterly financial data over the observed periods reveals several key trends and patterns regarding revenues, property and equipment, and asset utilization efficiency.

Net Revenues

Net revenues exhibit a generally cyclical pattern with fluctuations each quarter. From March 2021 to December 2021, revenues increased steadily from approximately $13.0 billion to nearly $14.9 billion. The following year, there was a slight dip in the first quarter of 2022, followed by a recovery and continued growth into the latter part of 2022, reaching about $15.1 billion by December 2022.

In 2023, revenues experienced some volatility, starting from $12.2 billion in March, rising moderately to $14.3 billion by December. A similar pattern of recovery and growth is visible into 2024 and 2025, with revenues generally increasing, peaking near or above $15.7 billion by September 2025. Despite some interim declines, the overall trend suggests a moderate growth trajectory with seasonal variations.

Property and Equipment, Net

The net value of property and equipment shows a gradual decline from $5.19 billion in March 2021 to a low point of around $4.89 billion in September 2022. Following this trough, the figure stabilizes and then begins to increase steadily from early 2023 onward, reaching approximately $5.48 billion by September 2025.

This pattern may indicate an ongoing divestiture or depreciation phase in the earlier periods, followed by new capital investments or acquisitions later, contributing to asset base growth.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio demonstrates a consistent upward trend from 9.67 in March 2021 to a peak of about 11.82 in September 2022, reflecting improving efficiency in generating revenue from fixed assets during this interval.

After reaching this peak, the ratio experiences a slight decline and fluctuates in the range of approximately 10.8 to 11.5 through 2023 and 2024, suggesting a stabilization in asset utilization efficiency. Toward the end of the data series in 2025, the ratio remains fairly steady around the 10.9 to 11.0 mark, indicating maintained effectiveness in asset deployment.

In summary, the data reveal a company that experiences cyclical revenue patterns with an overall upward trajectory, stabilization and growth in its asset base after a period of reduction, and relatively high and stable asset utilization efficiency. These trends suggest effective management of fixed assets in relation to revenue generation, alongside a possible strategic renewal of asset investments in the recent periods.

Net Revenues

The net revenues exhibited a fluctuating pattern over the analyzed periods. Initially, from March 2021 to December 2021, there was a steady increase from approximately $13.0 billion to $14.9 billion. This was followed by a slight decline in the first quarter of 2022, with revenues dropping to around $13.5 billion, but then rebounded consistently through the rest of 2022, reaching about $15.1 billion by year-end.

In 2023, the trend became more volatile. The revenues decreased sharply to about $12.2 billion in the first quarter, before recovering to the range of $13.9 billion to $14.3 billion by the last quarter. The period spanning the first quarter of 2024 through the end of 2025 showed a general upward trajectory, with net revenues increasing from approximately $12.3 billion in early 2024 to about $15.8 billion by the third quarter of 2025, despite some intermittent dips.

Total Assets

Total assets demonstrated a gradual decline from March 2021 to December 2023. Initially reported at about $150.5 billion in early 2021, total assets decreased steadily over this period, falling to approximately $134.7 billion by the end of 2023.

An upward adjustment was observed from early 2024, with total assets increasing to around $148.9 billion but then decreasing again through the subsequent quarters, settling near $133.9 billion by the third quarter of 2025. This trend suggests some asset revaluation or acquisition activity in early 2024, followed by reductions or disposals thereafter.

Total Asset Turnover

The total asset turnover ratio showed a generally positive trend, indicating improving efficiency in the use of assets to generate revenues. Starting at 0.33 in March 2021, the ratio increased steadily to approximately 0.42 by December 2021.

Throughout 2022 and 2023, the ratio hovered around 0.40 to 0.42, displaying stable efficiency levels. In 2024 and through the first three quarters of 2025, the ratio continued to improve, reaching 0.45 by September 2025. This gradual increase signals more effective asset utilization despite fluctuations in total assets and net revenues.

Overall Insights

The company’s net revenues have experienced periods of volatility, with notable dips in early 2022 and 2023, but generally demonstrate a rebound and upward momentum into 2025. Total assets underwent a general decline from 2021 through 2023, with a temporary rise in early 2024, suggesting possible strategic asset management activities. The increasing total asset turnover ratio over time reflects enhanced operational efficiency, indicating that the company has improved its ability to generate revenues from its asset base even as total assets fluctuate.

Net Revenues

The net revenues demonstrate a pattern of fluctuations over the reported periods. Initially, revenues showed a general upward trend from 13,010 million to 14,886 million over 2021. This was followed by a secondary peak in late 2022 at approximately 15,121 million, after which revenues declined sharply in early 2023 to around 12,225 million. A recovery phase is visible from mid-2023 onwards, with revenues again increasing towards late 2024 and continuing strongly into 2025, reaching approximately 15,776 million by September 2025. The data reflects cyclical movements with periods of both decline and robust recoveries occurring within roughly annual cycles.

Stockholders’ Equity (Deficit)

Stockholders’ equity exhibited a general decreasing trend throughout the period under review. Starting at roughly 13,710 million in early 2021, equity values peaked at around 17,254 million at the end of 2022. Following this high point, there was a marked and continuous decline in equity, crossing into deficit territory by early 2025, with values falling from positive figures into negative territory (notably -183 million and further to -2,642 million by September 2025). This trend indicates potential challenges related to retained earnings, liabilities, or other equity factors, reflecting increasing financial strain or distribution beyond net asset values over time.

Equity Turnover Ratio

The equity turnover ratio reveals significant volatility and a strong upward trajectory over the available periods. Initially fluctuating between roughly 3.36 and 4.56 in 2021 and 2022, the ratio increases sharply from early 2023 onwards, reaching a peak of approximately 16.94 by December 2024 and 40.4 shortly thereafter. This substantial increase suggests a rising efficiency in generating revenues from stockholders’ equity, mainly driven by the declining equity base rather than large increases in net revenues. However, the disproportionate increase in turnover ratio alongside diminishing equity levels points to an elevated risk profile and possible financial instability.

Overall Insights

The data reflects a complex financial picture characterized by moderate revenue growth disrupted by periodic declines, a deteriorating equity base transitioning into deficit, and a rapidly rising equity turnover ratio indicating both increased operational leverage and financial risk. This combination suggests aggressive utilization of equity resources and may imply the need for careful financial management to address equity deficits and sustain revenue generation capacity.