Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

AbbVie Inc. (NYSE:ABBV)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

AbbVie Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Inventory turnover 4.65 4.10 4.81 4.39 4.04
Receivables turnover 5.19 6.13 6.08 5.55 5.39
Payables turnover 6.76 5.12 4.99 4.78 4.15
Working capital turnover 0.98 6.16 4.00
Average No. Days
Average inventory processing period 79 89 76 83 90
Add: Average receivable collection period 70 60 60 66 68
Operating cycle 149 149 136 149 158
Less: Average payables payment period 54 71 73 76 88
Cash conversion cycle 95 78 63 73 70

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AbbVie Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. AbbVie Inc.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AbbVie Inc.’s payables turnover ratio increased from 2018 to 2019 and from 2019 to 2020.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. AbbVie Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. AbbVie Inc.’s number of days of payables outstanding decreased from 2018 to 2019 and from 2019 to 2020.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. AbbVie Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.

Inventory Turnover

AbbVie Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 15,387  7,439  7,718  7,040  5,833 
Inventories 3,310  1,813  1,605  1,605  1,444 
Short-term Activity Ratio
Inventory turnover1 4.65 4.10 4.81 4.39 4.04
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 2.99 3.07 3.35 3.43 3.71
Amgen Inc. 1.58 1.22 1.39 1.44 1.52
Bristol-Myers Squibb Co. 5.68 1.88 5.48 5.20 3.99
Eli Lilly & Co. 1.38 1.48 1.56 1.36 1.59
Gilead Sciences Inc. 5.07 5.96 5.46 2.68
Illumina Inc. 2.78 3.00 2.68 2.78 2.44
Johnson & Johnson 3.04 3.05 3.15 2.89 2.66
Merck & Co. Inc. 2.36 2.48 2.51 2.85
Pfizer Inc. 1.23 1.50 1.48 1.82
Regeneron Pharmaceuticals Inc. 0.26 0.26 0.16 0.28 0.49
Vertex Pharmaceuticals Inc. 2.62 3.27 3.29 2.46 2.71
Zoetis Inc. 1.26 1.41 1.37 1.24 1.11
Inventory Turnover, Sector
Pharmaceuticals & Biotechnology 2.20 2.50 2.40 2.41
Inventory Turnover, Industry
Health Care 5.37 5.80 5.50 5.59

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Inventory turnover = Cost of products sold ÷ Inventories
= 15,387 ÷ 3,310 = 4.65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. AbbVie Inc.’s inventory turnover ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Receivables Turnover

AbbVie Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net revenues 45,804  33,266  32,753  28,216  25,638 
Accounts receivable, net 8,822  5,428  5,384  5,088  4,758 
Short-term Activity Ratio
Receivables turnover1 5.19 6.13 6.08 5.55 5.39
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 5.40 5.88 5.90 5.22 6.42
Amgen Inc. 5.36 5.47 6.29 6.73 6.92
Bristol-Myers Squibb Co. 5.72 3.89 4.66 4.43 4.69
Eli Lilly & Co. 4.18 4.91 4.68 5.03 5.27
Gilead Sciences Inc. 6.18 6.52 6.66 6.64
Illumina Inc. 6.65 6.18 6.48 6.70 6.29
Johnson & Johnson 6.08 5.67 5.79 5.67 6.14
Merck & Co. Inc. 6.91 5.98 5.84 5.67
Pfizer Inc. 5.93 6.68 6.39 6.42
Regeneron Pharmaceuticals Inc. 1.79 2.30 2.38 2.42 2.49
Vertex Pharmaceuticals Inc. 7.01 6.57 7.44 8.85 8.47
Zoetis Inc. 6.59 5.76 5.62 5.32 5.35
Receivables Turnover, Sector
Pharmaceuticals & Biotechnology 5.58 5.77 5.65 5.90
Receivables Turnover, Industry
Health Care 7.39 7.49 7.32 7.59

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 45,804 ÷ 8,822 = 5.19

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. AbbVie Inc.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Payables Turnover

AbbVie Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 15,387  7,439  7,718  7,040  5,833 
Accounts payable 2,276  1,452  1,546  1,474  1,407 
Short-term Activity Ratio
Payables turnover1 6.76 5.12 4.99 4.78 4.15
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 3.80 4.07 4.27 5.14 7.66
Amgen Inc. 4.33 3.18 3.40 3.01 4.54
Bristol-Myers Squibb Co. 4.34 3.30 3.46 2.70 2.97
Eli Lilly & Co. 3.41 3.36 4.55 4.30 4.19
Gilead Sciences Inc. 6.56 6.14 5.37 3.53
Illumina Inc. 5.40 7.22 5.61 5.79 5.31
Johnson & Johnson 2.99 3.23 3.59 3.47 3.13
Merck & Co. Inc. 3.78 4.07 4.12 4.95
Pfizer Inc. 2.42 2.41 2.41 2.72
Regeneron Pharmaceuticals Inc. 1.03 0.87 0.82 1.14 1.44
Vertex Pharmaceuticals Inc. 4.75 6.25 3.69 3.72 3.42
Zoetis Inc. 4.50 6.62 6.11 6.80 6.29
Payables Turnover, Sector
Pharmaceuticals & Biotechnology 3.50 3.73 3.64 3.75
Payables Turnover, Industry
Health Care 5.78 5.99 5.81 5.96

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Payables turnover = Cost of products sold ÷ Accounts payable
= 15,387 ÷ 2,276 = 6.76

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. AbbVie Inc.’s payables turnover ratio increased from 2018 to 2019 and from 2019 to 2020.

Working Capital Turnover

AbbVie Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current assets 24,173  49,519  16,945  21,223  16,187 
Less: Current liabilities 28,661  15,585  17,239  16,641  9,781 
Working capital (4,488) 33,934  (294) 4,582  6,406 
 
Net revenues 45,804  33,266  32,753  28,216  25,638 
Short-term Activity Ratio
Working capital turnover1 0.98 6.16 4.00
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 4.06 6.64 5.44 2.44 1.04
Amgen Inc. 2.55 3.96 0.93 0.54 0.63
Bristol-Myers Squibb Co. 3.72 2.28 3.32 3.64 3.64
Eli Lilly & Co. 4.93 11.54 2.84 4.90 5.16
Gilead Sciences Inc. 1.08 0.86 1.27 2.67
Illumina Inc. 1.00 0.94 1.24 1.23 1.49
Johnson & Johnson 9.44 8.81 5.51 6.09 1.86
Merck & Co. Inc. 8.90 11.53 6.52 2.97
Pfizer Inc. 2.97 4.90 6.74
Regeneron Pharmaceuticals Inc. 0.79 0.86 0.82 1.16 1.72
Vertex Pharmaceuticals Inc. 0.99 1.19 1.12 1.35 1.64
Zoetis Inc. 1.50 2.13 1.83 1.70 2.15
Working Capital Turnover, Sector
Pharmaceuticals & Biotechnology 3.44 2.90 2.60 2.12
Working Capital Turnover, Industry
Health Care 5.24 5.18 4.28 3.70

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 45,804 ÷ -4,488 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

AbbVie Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Inventory turnover 4.65 4.10 4.81 4.39 4.04
Short-term Activity Ratio (no. days)
Average inventory processing period1 79 89 76 83 90
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 122 119 109 107 98
Amgen Inc. 231 300 262 254 241
Bristol-Myers Squibb Co. 64 194 67 70 92
Eli Lilly & Co. 265 247 233 268 230
Gilead Sciences Inc. 72 61 67 136
Illumina Inc. 131 122 136 131 150
Johnson & Johnson 120 119 116 126 137
Merck & Co. Inc. 155 147 146 128
Pfizer Inc. 296 244 246 201
Regeneron Pharmaceuticals Inc. 1,422 1,426 2,334 1,309 749
Vertex Pharmaceuticals Inc. 139 112 111 148 135
Zoetis Inc. 289 258 266 293 329
Average Inventory Processing Period, Sector
Pharmaceuticals & Biotechnology 166 146 152 151
Average Inventory Processing Period, Industry
Health Care 68 63 66 65

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.65 = 79

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. AbbVie Inc.’s number of days of inventory outstanding deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Average Receivable Collection Period

AbbVie Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Receivables turnover 5.19 6.13 6.08 5.55 5.39
Short-term Activity Ratio (no. days)
Average receivable collection period1 70 60 60 66 68
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 68 62 62 70 57
Amgen Inc. 68 67 58 54 53
Bristol-Myers Squibb Co. 64 94 78 82 78
Eli Lilly & Co. 87 74 78 73 69
Gilead Sciences Inc. 59 56 55 55
Illumina Inc. 55 59 56 55 58
Johnson & Johnson 60 64 63 64 59
Merck & Co. Inc. 53 61 63 64
Pfizer Inc. 62 55 57 57
Regeneron Pharmaceuticals Inc. 204 159 153 151 147
Vertex Pharmaceuticals Inc. 52 56 49 41 43
Zoetis Inc. 55 63 65 69 68
Average Receivable Collection Period, Sector
Pharmaceuticals & Biotechnology 65 63 65 62
Average Receivable Collection Period, Industry
Health Care 49 49 50 48

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.19 = 70

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

AbbVie Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 79 89 76 83 90
Average receivable collection period 70 60 60 66 68
Short-term Activity Ratio
Operating cycle1 149 149 136 149 158
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 190 181 171 177 155
Amgen Inc. 299 367 320 308 294
Bristol-Myers Squibb Co. 128 288 145 152 170
Eli Lilly & Co. 352 321 311 341 299
Gilead Sciences Inc. 131 117 122 191
Illumina Inc. 186 181 192 186 208
Johnson & Johnson 180 183 179 190 196
Merck & Co. Inc. 208 208 209 192
Pfizer Inc. 358 299 303 258
Regeneron Pharmaceuticals Inc. 1,626 1,585 2,487 1,460 896
Vertex Pharmaceuticals Inc. 191 168 160 189 178
Zoetis Inc. 344 321 331 362 397
Operating Cycle, Sector
Pharmaceuticals & Biotechnology 231 209 217 213
Operating Cycle, Industry
Health Care 117 112 116 113

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 79 + 70 = 149

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period.

Average Payables Payment Period

AbbVie Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Payables turnover 6.76 5.12 4.99 4.78 4.15
Short-term Activity Ratio (no. days)
Average payables payment period1 54 71 73 76 88
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 96 90 85 71 48
Amgen Inc. 84 115 107 121 80
Bristol-Myers Squibb Co. 84 110 105 135 123
Eli Lilly & Co. 107 109 80 85 87
Gilead Sciences Inc. 56 59 68 103
Illumina Inc. 68 51 65 63 69
Johnson & Johnson 122 113 102 105 116
Merck & Co. Inc. 97 90 89 74
Pfizer Inc. 151 152 151 134
Regeneron Pharmaceuticals Inc. 353 421 442 321 253
Vertex Pharmaceuticals Inc. 77 58 99 98 107
Zoetis Inc. 81 55 60 54 58
Average Payables Payment Period, Sector
Pharmaceuticals & Biotechnology 104 98 100 97
Average Payables Payment Period, Industry
Health Care 63 61 63 61

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.76 = 54

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. AbbVie Inc.’s number of days of payables outstanding decreased from 2018 to 2019 and from 2019 to 2020.

Cash Conversion Cycle

AbbVie Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 79 89 76 83 90
Average receivable collection period 70 60 60 66 68
Average payables payment period 54 71 73 76 88
Short-term Activity Ratio
Cash conversion cycle1 95 78 63 73 70
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 94 91 86 106 107
Amgen Inc. 215 252 213 187 214
Bristol-Myers Squibb Co. 44 178 40 17 47
Eli Lilly & Co. 245 212 231 256 212
Gilead Sciences Inc. 75 58 54 88
Illumina Inc. 118 130 127 123 139
Johnson & Johnson 58 70 77 85 80
Merck & Co. Inc. 111 118 120 118
Pfizer Inc. 207 147 152 124
Regeneron Pharmaceuticals Inc. 1,273 1,164 2,045 1,139 643
Vertex Pharmaceuticals Inc. 114 110 61 91 71
Zoetis Inc. 263 266 271 308 339
Cash Conversion Cycle, Sector
Pharmaceuticals & Biotechnology 127 111 117 116
Cash Conversion Cycle, Industry
Health Care 54 51 53 52

Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 79 + 7054 = 95

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. AbbVie Inc.’s cash conversion cycle deteriorated from 2018 to 2019 and from 2019 to 2020.