Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
AbbVie Inc. pages available for free this week:
- 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
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to AbbVie Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
AbbVie Inc., profitability ratios
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).
The profitability metrics demonstrate a period of fluctuation between 2021 and 2025. Initial stability gives way to declines in several key areas, followed by a partial recovery in the later years of the observed period.
- Gross Profit Margin
- The gross profit margin exhibited initial growth, increasing from 68.96% in 2021 to 70.00% in 2022. However, a significant decrease to 62.42% occurred in 2023. This was followed by a recovery to 69.99% in 2024 and a slight further increase to 70.24% in 2025, approaching the levels seen in 2022.
- Operating Profit Margin
- The operating profit margin showed a modest decline from 31.89% in 2021 to 31.21% in 2022. A more substantial decrease was observed in 2023, falling to 23.49%. This downward trend continued into 2024, reaching a low of 16.22%. A notable recovery occurred in 2025, with the margin increasing to 24.65%, though it did not return to the levels observed in the earlier years.
- Net Profit Margin
- The net profit margin followed a similar pattern to the operating margin, with a slight decrease from 20.54% in 2021 to 20.39% in 2022. A significant decline occurred in 2023, dropping to 8.95%, and continued in 2024, reaching 7.59%. The margin decreased further in 2025 to 6.91%, indicating a consistent erosion of profitability at the net level.
- Return on Equity (ROE)
- Return on equity experienced substantial volatility. It decreased from 74.91% in 2021 to 68.60% in 2022, then fell sharply to 46.94% in 2023. A dramatic increase was observed in 2024, reaching 128.66%. No value is available for 2025, preventing assessment of any subsequent trend.
- Return on Assets (ROA)
- Return on assets showed a gradual decline throughout the period. It increased slightly from 7.88% in 2021 to 8.53% in 2022, but then decreased to 3.61% in 2023. This downward trend continued in 2024 (3.17%) and 2025 (3.15%), indicating a diminishing ability to generate profit from its assets.
Overall, the period was characterized by a weakening of profitability, particularly in operating and net margins, although some recovery was evident in gross profit margin and operating profit margin towards the end of the observed timeframe. The significant fluctuation in ROE warrants further investigation, while ROA consistently declined.
Return on Sales
Return on Investment
Gross Profit Margin
AbbVie Inc., gross profit margin 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) | ||||||
| Gross margin | ||||||
| Net revenues | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, 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. | ||||||
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
Gross profit margin = 100 × Gross margin ÷ Net revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the five-year period. Initially, an increase was observed, followed by a decline, and then a recovery towards the end of the period. A closer examination reveals specific trends in both gross margin and net revenues, which contribute to the observed margin behavior.
- Gross Profit Margin Trend
- The gross profit margin began at 68.96% in 2021, increasing to a peak of 70.00% in 2022. A significant decrease followed in 2023, with the margin falling to 62.42%. Subsequently, the margin rebounded in 2024 to 69.99% and continued to rise slightly in 2025, reaching 70.24%. This indicates a period of margin expansion, a subsequent contraction, and then a return to growth.
- Gross Margin Analysis
- The gross margin in US$ millions increased from 38,751 in 2021 to 40,640 in 2022, aligning with the initial increase in the gross profit margin percentage. However, in 2023, the gross margin decreased substantially to 33,903, driving the overall margin percentage down. The gross margin then recovered to 39,430 in 2024 and further increased to 42,956 in 2025, supporting the observed margin percentage recovery.
- Net Revenues Correlation
- Net revenues generally increased over the period, moving from 56,197 in 2021 to 61,160 in 2025. The decrease in net revenues from 58,054 in 2022 to 54,318 in 2023 likely contributed to the significant drop in the gross profit margin during that year, despite the decrease in gross margin being proportionally larger. The subsequent increases in both net revenues and gross margin in 2024 and 2025 suggest a positive correlation between the two metrics.
The fluctuations in gross profit margin appear to be influenced by the interplay between gross margin in dollar terms and net revenues. While revenue growth generally supported margin expansion, the substantial decline in gross margin during 2023 had a disproportionately negative impact on the overall gross profit margin percentage.
Operating Profit Margin
AbbVie Inc., operating profit margin 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) | ||||||
| Operating earnings | ||||||
| Net revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, 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. | ||||||
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating earnings ÷ Net revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the five-year period. Initial stability gave way to a marked decline, followed by a recovery in the most recent year.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at 31.89%. A slight decrease was observed in 2022, with the margin falling to 31.21%. However, 2023 witnessed a more substantial decline, dropping to 23.49%. This downward trend continued into 2024, reaching a low of 16.22%. A significant recovery occurred in 2025, with the operating profit margin increasing to 24.65%.
The decline in operating profit margin from 2021 to 2024 suggests increasing costs relative to revenue, or potentially pricing pressures. The recovery in 2025 indicates a potential stabilization of costs, improved pricing strategies, or increased operational efficiency. The operating earnings decreased significantly from 2022 to 2024, while net revenues also experienced a decrease in 2023, contributing to the margin compression. The simultaneous increase in both operating earnings and net revenues in 2025 likely drove the observed margin improvement.
- Relationship to Underlying Financial Items
- The operating profit margin’s movement closely correlates with changes in both operating earnings and net revenues. The largest margin decrease coincided with the largest decrease in operating earnings, specifically between 2022 and 2024. The subsequent increase in operating earnings in 2025 directly contributed to the margin’s recovery.
Further investigation into the components of operating expenses and revenue streams would be necessary to fully understand the drivers behind these fluctuations. A detailed analysis of cost of goods sold, selling, general, and administrative expenses, and research and development expenditures would provide valuable insights.
Net Profit Margin
AbbVie Inc., net profit margin 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 earnings attributable to AbbVie Inc. | ||||||
| Net revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, 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 Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Profit Margin, 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 profit margin = 100 × Net earnings attributable to AbbVie Inc. ÷ Net revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited a declining trend over the five-year period. Initially strong, the metric decreased significantly from 2021 to 2023, and continued to fall, albeit at a slower rate, through 2025.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 20.54%. A slight decrease to 20.39% was observed in 2022. However, 2023 witnessed a substantial decline to 8.95%, representing a significant contraction in profitability. This downward trajectory persisted in 2024, with the margin falling to 7.59%, and continued into 2025, reaching 6.91%.
The decrease in net profit margin appears to be driven by a combination of factors. While net revenues generally increased over the period, the rate of revenue growth did not offset the substantial reduction in net earnings attributable to AbbVie Inc. between 2021 and 2023. The revenue increase from 2024 to 2025 was more substantial, but was not enough to reverse the declining profit margin trend.
- Relationship to Net Earnings and Net Revenues
- Net earnings attributable to AbbVie Inc. decreased from US$11,542 million in 2021 to US$4,226 million in 2025. Net revenues increased from US$56,197 million in 2021 to US$61,160 million in 2025. The disparity between the decline in earnings and the increase in revenues is the primary driver of the observed reduction in net profit margin.
The consistent decline in the net profit margin suggests increasing cost pressures, a shift in revenue mix towards lower-margin products, or other factors impacting profitability. Further investigation into the underlying drivers of these changes would be necessary to fully understand the implications for the company’s financial performance.
Return on Equity (ROE)
AbbVie Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to AbbVie Inc. | ||||||
| Stockholders’ equity (deficit) | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, 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. | ||||||
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROE, 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
ROE = 100 × Net earnings attributable to AbbVie Inc. ÷ Stockholders’ equity (deficit)
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the observed period. Net earnings attributable to AbbVie Inc. decreased significantly from 2021 to 2023, before stabilizing in 2024 and 2025. Simultaneously, stockholders’ equity experienced a substantial decline, culminating in a deficit by the end of 2025. These movements have a pronounced effect on the calculated ROE.
- ROE Trend
- ROE began at 74.91% in 2021 and decreased to 68.60% in 2022. A more substantial decline followed, with ROE falling to 46.94% in 2023, reflecting the decrease in net earnings. An unexpected increase occurred in 2024, with ROE reaching 128.66%. This surge is attributable to the combination of declining net earnings and a dramatic reduction in stockholders’ equity. The ROE for 2025 is not available, but the negative stockholders’ equity suggests a potentially negative or undefined ROE value.
- Net Earnings
- Net earnings attributable to AbbVie Inc. demonstrated a modest increase from $11,542 million in 2021 to $11,836 million in 2022. However, a significant decrease was observed in 2023, with net earnings falling to $4,863 million. Net earnings remained relatively stable between 2024 and 2025, at $4,278 million and $4,226 million respectively.
- Stockholders’ Equity
- Stockholders’ equity increased from $15,408 million in 2021 to $17,254 million in 2022. A substantial decrease began in 2023, with equity falling to $10,360 million. This downward trend accelerated in 2024, with equity decreasing to $3,325 million. By the end of 2025, stockholders’ equity had become a deficit of -$3,270 million.
The considerable decline in stockholders’ equity, particularly the transition to a deficit position, is a key observation. While the ROE increased in 2024, this was largely a mathematical artifact of the shrinking equity base and does not necessarily indicate improved operational performance. Further investigation into the factors driving the reduction in equity is warranted.
Return on Assets (ROA)
AbbVie Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to AbbVie Inc. | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, 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. | ||||||
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| ROA, 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
ROA = 100 × Net earnings attributable to AbbVie Inc. ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a notable shift over the five-year period. Initially, the ROA demonstrated growth, followed by a substantial decline and subsequent stabilization at a lower level.
- Overall Trend
- The ROA increased from 7.88% in 2021 to 8.53% in 2022, representing a period of improved asset utilization in generating earnings. However, a significant downward trend commenced in 2022, with the ROA decreasing to 3.61% in 2023 and further to 3.17% in 2024. This decline continued modestly to 3.15% in 2025, indicating a stabilization at a considerably reduced profitability level compared to the earlier years.
- Net Earnings Impact
- The decline in ROA correlates with a decrease in net earnings attributable to AbbVie Inc. While net earnings remained relatively stable between 2021 and 2022, a substantial reduction occurred in 2023, falling to US$4,863 million. This decrease continued in 2024 and 2025, reaching US$4,278 million and US$4,226 million respectively. This consistent reduction in earnings is a primary driver of the observed ROA decline.
- Asset Base Consideration
- Total assets decreased from US$146,529 million in 2021 to US$138,805 million in 2022, potentially contributing to the initial ROA increase. However, the asset base remained relatively stable between 2022 and 2025, fluctuating within a narrow range of US$134,711 million to US$135,161 million, before decreasing slightly to US$133,960 million in 2025. The stabilization of the asset base suggests that the primary cause of the ROA decline is the reduction in net earnings, rather than significant changes in the asset level.
In summary, the ROA experienced a period of initial improvement followed by a marked decline and eventual stabilization at a lower level. This trend is largely attributable to a consistent reduction in net earnings, despite a relatively stable asset base.