Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Analysis of Short-term (Operating) Activity Ratios 
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

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

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Turnover Ratios
Inventory turnover 3.71 4.04 4.09 4.86 4.83 4.98 4.74 4.30 4.53 4.87 5.54 4.99 4.96 5.58 5.76 5.45 5.40 4.65
Receivables turnover 4.60 5.16 4.84 4.69 4.55 4.87 4.83 4.88 4.95 5.16 5.38 5.10 5.29 5.63 5.94 5.42 5.24 5.19
Working capital turnover 130.12
Average No. Days
Average inventory processing period 98 90 89 75 75 73 77 85 81 75 66 73 74 65 63 67 68 79
Add: Average receivable collection period 79 71 75 78 80 75 76 75 74 71 68 72 69 65 61 67 70 70
Operating cycle 177 161 164 153 155 148 153 160 155 146 134 145 143 130 124 134 138 149

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).


Inventory Turnover
The inventory turnover ratio shows an overall declining trend from March 31, 2020, to March 31, 2025. Starting at 4.65 (value first available in March 2020), it increases to a peak of 5.76 by December 31, 2020, indicating faster inventory turnover. However, subsequent quarters show a gradual decrease, reaching 3.71 by March 31, 2025, suggesting a slowdown in inventory movement or accumulation of stock over time.
Receivables Turnover
The receivables turnover ratio exhibits modest fluctuations over the reviewed period. Beginning around 5.19 in March 2020, it slightly rises to a high of 5.94 by December 2020, indicating more efficient collection of receivables. Following this peak, there is a mild downward trend with some variability, ending at 4.6 by March 2025. This indicates a general lengthening in the time taken to collect receivables over the years.
Working Capital Turnover
Working capital turnover is reported only for one period with a single value of 130.12 and lacks data for comparative analysis or trend evaluation over time.
Average Inventory Processing Period
The average inventory processing period shows variability with a general upward trend in later years. It starts near 79 days in early 2020, declines to a low of approximately 63 days by December 2020, indicating faster inventory processing. From 2021 onward, the period fluctuates and then increases again, peaking close to 98 days by March 2025. This suggests slower inventory turnover in recent periods, correlating with the declining inventory turnover ratio noted.
Average Receivable Collection Period
The average receivable collection period remains relatively stable with some mild fluctuations. It begins around 70 days in early 2020, decreases to about 61 days by December 2020, signaling faster collection. Post-2020, the period trends slightly upward, reaching 79 days by March 2025, implying a gradual lengthening in collection times consistent with the trends observed in receivables turnover.
Operating Cycle
The operating cycle, representing the sum of inventory processing and receivables collection periods, follows a pattern reflective of its components. Starting near 149 days in 2020, it decreases to a low of 124 days around December 2020, corresponding with improved operational efficiency. From 2021 forward, the cycle lengthens consistently, reaching 177 days by March 2025. This extension indicates that collectively, inventory and receivables management have become slower compared to earlier years.

Turnover Ratios


Average No. Days


Inventory Turnover

AbbVie Inc., inventory turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Cost of products sold 4,002 4,396 4,212 4,202 4,094 5,704 6,485 4,240 3,986 4,170 5,022 4,170 4,052 4,320 4,390 4,523 4,213 4,684 5,050 3,711 1,942
Inventories 4,526 4,181 4,450 4,218 4,245 4,099 3,981 4,055 3,833 3,579 3,172 3,396 3,483 3,128 3,094 3,386 3,272 3,310 3,474 4,059 1,844
Short-term Activity Ratio
Inventory turnover1 3.71 4.04 4.09 4.86 4.83 4.98 4.74 4.30 4.53 4.87 5.54 4.99 4.96 5.58 5.76 5.45 5.40 4.65
Benchmarks
Inventory Turnover, Competitors2
Amgen Inc. 1.88 1.84 1.75 1.42 1.14 0.89 1.41 1.38 1.31 1.30 1.34 1.40 1.48 1.58 1.53 1.53 1.53 1.58
Bristol-Myers Squibb Co. 5.28 5.46 3.57 3.72 3.70 4.02 4.33 4.39 3.93 4.33 4.77 4.59 4.55 4.74 4.85 5.01 5.61 5.68
Danaher Corp. 3.79 4.15 3.60 3.59 3.73 3.80 3.53 3.58 3.50 4.03 3.80 3.71 3.87 4.16 4.06 4.28 4.34 4.28
Eli Lilly & Co. 0.96 1.11 1.05 1.16 1.17 1.23 1.40 1.37 1.36 1.54 1.86 1.79 1.93 1.88 1.79 1.80 1.68 1.38
Gilead Sciences Inc. 3.55 3.66 3.62 3.33 3.59 3.64 3.49 3.45 3.57 3.75 4.71 4.50 4.50 4.08 3.21 2.99 2.79 2.72
Johnson & Johnson 2.24 2.21 2.15 2.20 2.32 2.37 2.46 2.23 2.36 2.49 2.68 2.69 2.77 2.87 2.86 2.91 2.86 3.04
Merck & Co. Inc. 2.43 2.49 2.45 2.39 2.42 2.54 2.63 2.66 2.72 2.95 3.10 3.06 2.74 2.29 2.73 2.79 2.40 2.45
Pfizer Inc. 1.60 1.65 1.66 2.05 2.15 2.45 2.65 2.31 3.07 3.82 3.62 3.66 3.67 3.40 2.78 1.80 1.28 1.08
Regeneron Pharmaceuticals Inc. 0.63 0.64 0.64 0.65 0.66 0.70 0.72 0.69 0.67 0.65 0.83 0.96 1.27 1.25 0.88 0.82 0.56 0.58
Thermo Fisher Scientific Inc. 4.82 5.06 4.62 4.83 4.93 5.06 4.83 4.64 4.62 4.60 4.29 4.03 3.87 3.88 3.90 4.03 4.01 4.02
Vertex Pharmaceuticals Inc. 1.14 1.27 1.37 1.53 1.65 1.71 1.71 1.90 2.06 2.35 2.69 2.70 2.83 2.56 2.58 2.52 2.56 2.62

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Inventory turnover = (Cost of products soldQ1 2025 + Cost of products soldQ4 2024 + Cost of products soldQ3 2024 + Cost of products soldQ2 2024) ÷ Inventories
= (4,002 + 4,396 + 4,212 + 4,202) ÷ 4,526 = 3.71

2 Click competitor name to see calculations.


The cost of products sold exhibited significant fluctuations over the observed quarterly periods. Initially, there was a sharp increase from approximately 1,942 million USD in Q1 2020 to a peak exceeding 5,000 million USD in Q3 2020. Subsequently, costs displayed a moderating trend, with values oscillating around the 4,000 to 5,000 million USD range. Notably, in Q3 2023, there was a substantial surge to nearly 6,485 million USD, followed by a decline and subsequent stabilization near 4,000 to 4,500 million USD toward Q1 2025.

Inventories also showed varying levels during the time frame. Starting around 1,844 million USD in Q1 2020, inventories increased notably by Q2 2020, reaching above 4,000 million USD in multiple instances thereafter. Despite some oscillations, including a dip around mid-2022, the general trend shows inventories maintaining a higher base level compared to the initial quarter, frequently exceeding 3,500 million USD. Towards the later quarters, quantities approached and surpassed 4,500 million USD again, suggesting ongoing inventory accumulation.

Inventory turnover ratio data was only available from Q4 2020 onward. The ratio started at 4.65 and experienced a steady increase reaching the highest point near 5.76 during Q4 2021. In subsequent periods, a gradual but consistent decline followed, bringing the ratio down to approximately 3.71 by Q1 2025. This downward trend in turnover ratio indicates a slowing in the rate at which inventory was converted into sales or usage, suggesting potential inventory management challenges or shifts in sales velocity.

Cost of Products Sold
Sharp rise observed in early 2020, peaking in Q3 2020, followed by moderate fluctuations mostly between 4,000 and 5,000 million USD.
Significant peak in Q3 2023 above 6,400 million USD, then decreasing to stabilize near 4,000 million USD in later quarters.
Inventories
Increased sharply during Q2 2020, then fluctuated with a general upward tendency.
Stabilized mostly above 3,500 million USD with multiple quarters exceeding 4,000 million USD, reaching as high as 4,526 million USD in Q1 2025.
Inventory Turnover Ratio
Started at 4.65 in Q4 2020, peaked at 5.76 in Q4 2021.
Subsequent steady decline to approximately 3.71 in Q1 2025, reflecting decreased efficiency in inventory utilization over time.

In summary, the data indicates rising inventory levels alongside fluctuating costs of goods sold, with inventory turnover efficiency diminishing towards the end of the period. These patterns could imply increasing stockpiling or slower sales activity, warranting attention to inventory management and cost control measures moving forward.


Receivables Turnover

AbbVie Inc., receivables turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Net revenues 13,343 15,102 14,460 14,462 12,310 14,301 13,927 13,865 12,225 15,121 14,812 14,583 13,538 14,886 14,342 13,959 13,010 13,858 12,902 10,425 8,619
Accounts receivable, net 12,477 10,919 11,472 11,724 11,949 11,155 11,412 11,491 11,473 11,254 10,743 11,237 10,733 9,977 9,281 9,914 9,588 8,822 8,416 8,354 6,362
Short-term Activity Ratio
Receivables turnover1 4.60 5.16 4.84 4.69 4.55 4.87 4.83 4.88 4.95 5.16 5.38 5.10 5.29 5.63 5.94 5.42 5.24 5.19
Benchmarks
Receivables Turnover, Competitors2
Amgen Inc. 4.03 4.72 4.26 4.26 4.16 3.70 4.17 4.34 4.34 4.46 4.60 4.62 4.81 4.96 5.11 5.39 5.41 5.36
Danaher Corp. 6.79 6.75 6.77 7.15 7.02 6.09 6.15 6.64 6.89 6.40 7.09 6.81 6.87 6.36 6.69 6.51 6.28 5.51
Eli Lilly & Co. 4.07 4.09 3.97 3.53 4.56 3.75 3.93 3.93 3.68 4.14 4.35 4.57 4.64 4.24 4.69 4.58 4.56 4.18
Gilead Sciences Inc. 6.51 6.47 6.14 5.92 5.84 5.78 5.68 6.43 6.43 5.65 6.16 6.60 7.18 6.01 5.95 6.34 6.43 4.98
Johnson & Johnson 5.58 5.98 5.42 5.48 5.73 5.73 5.91 5.36 5.65 5.88 6.04 5.92 6.08 6.14 6.13 6.00 5.64 6.08
Merck & Co. Inc. 5.92 6.24 5.55 5.37 5.40 5.81 5.71 5.29 5.56 6.27 6.22 5.93 5.49 5.28 5.56 6.00 5.65 6.11
Pfizer Inc. 5.27 5.55 4.18 4.93 5.09 5.33 6.25 7.66 7.57 9.16 6.21 6.68 6.99 7.08 5.81 5.23 4.70 5.28
Regeneron Pharmaceuticals Inc. 2.53 2.29 2.27 2.36 2.51 2.31 2.35 2.47 2.42 2.28 2.47 2.76 3.41 2.66 2.48 1.77 2.20 2.07
Thermo Fisher Scientific Inc. 5.07 5.23 5.13 5.33 5.36 5.21 5.19 5.43 5.53 5.53 5.76 5.53 5.21 4.92 7.03 6.99 6.46 5.61
Vertex Pharmaceuticals Inc. 6.15 6.85 6.07 6.24 5.68 6.31 6.27 6.11 5.95 6.19 6.28 6.26 6.15 6.66 6.48 7.19 6.56 7.01

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Receivables turnover = (Net revenuesQ1 2025 + Net revenuesQ4 2024 + Net revenuesQ3 2024 + Net revenuesQ2 2024) ÷ Accounts receivable, net
= (13,343 + 15,102 + 14,460 + 14,462) ÷ 12,477 = 4.60

2 Click competitor name to see calculations.


The net revenues of the company demonstrate notable fluctuation over the period observed. Initially, there is a consistent upward trend from March 2020 through December 2021, with revenues rising from $8,619 million to $14,886 million. This suggests a period of growth in sales or service delivery. Subsequently, revenue figures exhibit volatility, with a decline occurring in the first quarter of 2023 ($12,225 million) before partially recovering in the following quarters. By March 2025, net revenues reach $13,343 million, which remains below the peak levels of late 2021, indicating potential challenges in maintaining previous revenue momentum or the impact of market or operational changes.

Accounts receivable, net, similarly show an overall increasing pattern from March 2020 ($6,362 million) through March 2025 ($12,477 million), more than doubling during the period. This rise generally corresponds with the growth in net revenues, but the continuous increase suggests that receivables are accumulating consistently. This could imply longer collection periods or challenges in cash inflows. The levels peak at various points, notably in June 2024 and March 2025, reflecting potential pressure on the company's credit management or customer payment behavior.

The receivables turnover ratio, which measures how efficiently the company collects its accounts receivable, fluctuates throughout the period. Starting around 5.19 in September 2020, it improves slightly to reach a peak near 5.94 in December 2020, indicative of efficient collection and management of receivables at that point. However, from 2021 onwards, the ratio generally trends downward, reaching a low of 4.55 in June 2024 before a mild recovery to 4.60 by March 2025. This decline corresponds with the rising accounts receivable balances and suggests a lengthening in the average collection period or diminished efficiency in receivable management over time.

Revenue Trend
Strong growth from early 2020 to late 2021 followed by volatility and partial decline through early 2025.
Accounts Receivable Trend
Consistent increase throughout the period indicating rising outstanding customer balances and potential collection challenges.
Receivables Turnover Ratio
Fluctuated with improvement through 2020, then a gradual decrease reflecting slower collection efficiency in subsequent years.

Working Capital Turnover

AbbVie Inc., working capital turnover calculation (quarterly data)

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data (US$ in millions)
Current assets 27,675 25,582 27,785 33,816 38,871 33,002 33,224 28,852 26,488 28,463 30,364 29,100 26,509 27,928 28,957 25,999 26,569 24,173 23,009 21,256 51,758
Less: Current liabilities 36,403 38,749 43,062 41,915 41,522 37,841 34,773 32,239 27,590 29,538 32,712 34,473 32,521 35,194 28,533 28,684 31,951 28,661 24,181 24,646 16,471
Working capital (8,728) (13,167) (15,277) (8,099) (2,651) (4,839) (1,549) (3,387) (1,102) (1,075) (2,348) (5,373) (6,012) (7,266) 424 (2,685) (5,382) (4,488) (1,172) (3,390) 35,287
 
Net revenues 13,343 15,102 14,460 14,462 12,310 14,301 13,927 13,865 12,225 15,121 14,812 14,583 13,538 14,886 14,342 13,959 13,010 13,858 12,902 10,425 8,619
Short-term Activity Ratio
Working capital turnover1 130.12
Benchmarks
Working Capital Turnover, Competitors2
Amgen Inc. 8.36 5.40 4.83 5.19 3.39 2.25 0.81 0.84 0.82 3.82 2.52 3.67 4.34 3.37 2.55 5.35 2.84 2.55
Bristol-Myers Squibb Co. 6.87 7.79 8.49 12.50 15.56 4.60 10.47 5.53 5.55 8.30 5.75 4.92 6.24 3.95 4.43 4.24 4.25 3.72
Danaher Corp. 8.27 8.85 8.73 8.10 3.60 4.22 2.18 3.08 3.81 4.20 5.00 5.43 5.91 8.40 7.98 3.12 3.45 3.48
Eli Lilly & Co. 4.38 10.32 6.06 12.62 5.45 31.79 12.21 5.77 31.84 14.71 19.45 8.19 8.33 6.73 12.14 5.21 4.93
Gilead Sciences Inc. 6.27 3.99 9.22 17.98 26.58 5.61 6.74 84.15 9.14 8.42 8.56 6.87 6.68 8.54 7.25 7.09 7.06 5.30
Johnson & Johnson 6.10 15.94 58.86 22.29 10.35 11.81 9.37 14.06 23.02 4.88 5.02 5.57 5.95 5.97 5.93 7.26 9.44
Merck & Co. Inc. 6.19 6.19 5.86 5.14 9.68 9.29 6.69 8.86 5.63 5.16 5.58 6.39 6.09 7.62 6.51 6.97 84.97 109.83
Pfizer Inc. 6.64 8.64 5,036.00 29.17 1.62 2.03 6.89 11.00 3.83 5.05 6.10 4.78 4.29 4.21 3.60 4.58
Regeneron Pharmaceuticals Inc. 1.01 0.97 0.88 0.87 0.86 0.82 0.87 0.92 0.90 0.96 1.09 1.14 1.46 1.59 1.35 1.29 1.35 1.20
Thermo Fisher Scientific Inc. 4.20 4.87 4.61 3.96 4.38 4.05 4.86 7.40 10.13 5.46 5.40 6.03 6.13 5.87 2.30 3.10 3.36 2.76
Vertex Pharmaceuticals Inc. 1.78 1.83 1.82 1.92 1.07 0.93 0.87 0.90 0.93 0.85 0.90 0.93 0.97 1.02 1.03 1.01 0.97 0.99

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Working capital turnover = (Net revenuesQ1 2025 + Net revenuesQ4 2024 + Net revenuesQ3 2024 + Net revenuesQ2 2024) ÷ Working capital
= (13,343 + 15,102 + 14,460 + 14,462) ÷ -8,728 =

2 Click competitor name to see calculations.


Working Capital
The working capital figures display significant volatility throughout the observed periods. Starting with a positive balance of 35,287 million USD in March 2020, the item experienced a steep decline into negative territory in subsequent quarters. This negative trend persisted with fluctuations, reaching pronounced lows around the end of 2024, where the lowest working capital was recorded at -15,277 million USD in December 2024. Overall, this indicates increasing short-term liabilities or declining current assets over time, suggesting tightening liquidity conditions.
Net Revenues
Net revenues demonstrated a general upward trajectory with some fluctuations. Beginning at 8,619 million USD in March 2020, revenues surged consistently through 2020 and 2021, peaking at 15,121 million USD in December 2022. Following this peak, revenues displayed periodic variation, with occasional declines such as in March 2023 (12,225 million USD) and March 2024 (12,310 million USD). Despite these fluctuations, the general trend suggests growth in revenue over the five-year span, although the final quarter of March 2025 shows a slight decrease to 13,343 million USD compared to prior peaks.
Working Capital Turnover
Working capital turnover is only provided for one period, with an extraordinarily high ratio of 130.12 recorded, which is likely not representative due to data limitations or errors. The absence of additional data precludes a reliable trend analysis for this metric.
Insights and Overall Patterns
The financial data indicates a dichotomy where net revenues steadily increase while working capital deteriorates into negative values, suggesting that the company might be managing increased sales but potentially facing challenges in working capital management. The pronounced negative working capital in later periods could imply aggressive liability management or inventory and receivables issues. This condition merits closer scrutiny as sustained negative working capital can affect operational flexibility.

Average Inventory Processing Period

AbbVie Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Inventory turnover 3.71 4.04 4.09 4.86 4.83 4.98 4.74 4.30 4.53 4.87 5.54 4.99 4.96 5.58 5.76 5.45 5.40 4.65
Short-term Activity Ratio (no. days)
Average inventory processing period1 98 90 89 75 75 73 77 85 81 75 66 73 74 65 63 67 68 79
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amgen Inc. 195 199 209 257 321 411 259 265 279 281 272 260 247 231 239 239 239 231
Bristol-Myers Squibb Co. 69 67 102 98 99 91 84 83 93 84 76 79 80 77 75 73 65 64
Danaher Corp. 96 88 101 102 98 96 104 102 104 91 96 98 94 88 90 85 84 85
Eli Lilly & Co. 379 329 349 316 312 298 261 267 268 237 196 204 189 194 204 203 217 265
Gilead Sciences Inc. 103 100 101 110 102 100 105 106 102 97 78 81 81 89 114 122 131 134
Johnson & Johnson 163 165 169 166 158 154 149 164 155 147 136 136 132 127 128 125 128 120
Merck & Co. Inc. 150 147 149 153 151 144 139 137 134 124 118 119 133 159 134 131 152 149
Pfizer Inc. 229 222 219 178 170 149 138 158 119 95 101 100 99 107 131 203 284 338
Regeneron Pharmaceuticals Inc. 582 572 573 562 553 519 508 532 549 562 440 379 287 292 415 445 653 625
Thermo Fisher Scientific Inc. 76 72 79 76 74 72 76 79 79 79 85 91 94 94 94 91 91 91
Vertex Pharmaceuticals Inc. 320 287 267 238 222 214 213 192 177 156 136 135 129 143 142 145 142 139

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.71 = 98

2 Click competitor name to see calculations.


Inventory Turnover Ratio
The inventory turnover ratio demonstrates a declining trend from the first reported value in March 31, 2021, starting at 4.65. It increases to 5.76 by December 31, 2021, indicating improved efficiency in inventory management during that period. However, from 2022 onwards, the ratio generally decreases, with minor fluctuations. By March 31, 2025, the ratio has dropped to 3.71, reflecting a reduction in the frequency of inventory being sold and replaced.
Average Inventory Processing Period
The average inventory processing period trends inversely to the inventory turnover ratio. Beginning at 79 days in March 31, 2021, the period shortens to 63 days by December 31, 2021, suggesting faster inventory movement early on. From 2022, the processing period exhibits an increasing pattern, rising to 98 days by March 31, 2025. This elongation indicates inventory is being held longer before sale or use, implying reduced inventory turnover efficiency over time.
Overall Insights
The data indicates an initial improvement in inventory management efficiency during 2021, with faster turnover and shorter processing periods. However, subsequent periods reveal a reversal of this trend, with declining turnover ratios and extended processing durations. This suggests increasing inventory holding times, which may impact working capital and operational efficiency adversely if the trend continues.

Average Receivable Collection Period

AbbVie Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Receivables turnover 4.60 5.16 4.84 4.69 4.55 4.87 4.83 4.88 4.95 5.16 5.38 5.10 5.29 5.63 5.94 5.42 5.24 5.19
Short-term Activity Ratio (no. days)
Average receivable collection period1 79 71 75 78 80 75 76 75 74 71 68 72 69 65 61 67 70 70
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Amgen Inc. 91 77 86 86 88 99 88 84 84 82 79 79 76 74 71 68 67 68
Danaher Corp. 54 54 54 51 52 60 59 55 53 57 51 54 53 57 55 56 58 66
Eli Lilly & Co. 90 89 92 103 80 97 93 93 99 88 84 80 79 86 78 80 80 87
Gilead Sciences Inc. 56 56 59 62 62 63 64 57 57 65 59 55 51 61 61 58 57 73
Johnson & Johnson 65 61 67 67 64 64 62 68 65 62 60 62 60 59 60 61 65 60
Merck & Co. Inc. 62 58 66 68 68 63 64 69 66 58 59 62 66 69 66 61 65 60
Pfizer Inc. 69 66 87 74 72 69 58 48 48 40 59 55 52 52 63 70 78 69
Regeneron Pharmaceuticals Inc. 144 160 161 155 146 158 156 148 151 160 148 132 107 137 147 206 166 177
Thermo Fisher Scientific Inc. 72 70 71 68 68 70 70 67 66 66 63 66 70 74 52 52 56 65
Vertex Pharmaceuticals Inc. 59 53 60 58 64 58 58 60 61 59 58 58 59 55 56 51 56 52

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.60 = 79

2 Click competitor name to see calculations.


Receivables Turnover
The receivables turnover ratio demonstrates a fluctuating pattern over the analyzed periods. Initially observed at 5.19, it experienced a gradual increase, peaking at 5.94 in December 2020. Subsequently, the ratio declined steadily, hitting a low point of 4.55 in March 2024, before showing slight recovery through December 2024 at 5.16. The ratio declined again to 4.6 by March 2025. This fluctuation indicates variability in the effectiveness of the company's credit and collection efforts over time.
Average Receivable Collection Period
The average collection period, expressed in days, inversely mirrors the trend in receivables turnover. Starting at 70 days in June 2020, it decreased to 61 days by December 2020, indicating an improvement in collecting receivables faster. Following this improvement, the collection period increased consistently to reach 80 days in March 2024, suggesting a slower collection pace. A slight decrease is then observed through the later quarters, with values ranging between 71 and 79 days up to March 2025, indicating some recovery but not returning to earlier efficiency levels.
Overall Trend and Insights
The data suggest that the company experienced the most efficient receivables management around late 2020, characterized by the highest turnover ratio and shortest collection period. Post that peak, a gradual decline in turnover coupled with lengthening collection days points toward potential challenges in accounts receivable management or changes in credit policy or customer payment behavior. Although there is some improvement late in the observed period, it does not reach previous efficiency levels, indicating ongoing variability and possible room for enhanced receivables management practices.

Operating Cycle

AbbVie Inc., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Selected Financial Data
Average inventory processing period 98 90 89 75 75 73 77 85 81 75 66 73 74 65 63 67 68 79
Average receivable collection period 79 71 75 78 80 75 76 75 74 71 68 72 69 65 61 67 70 70
Short-term Activity Ratio
Operating cycle1 177 161 164 153 155 148 153 160 155 146 134 145 143 130 124 134 138 149
Benchmarks
Operating Cycle, Competitors2
Amgen Inc. 286 276 295 343 409 510 347 349 363 363 351 339 323 305 310 307 306 299
Danaher Corp. 150 142 155 153 150 156 163 157 157 148 147 152 147 145 145 141 142 151
Eli Lilly & Co. 469 418 441 419 392 395 354 360 367 325 280 284 268 280 282 283 297 352
Gilead Sciences Inc. 159 156 160 172 164 163 169 163 159 162 137 136 132 150 175 180 188 207
Johnson & Johnson 228 226 236 233 222 218 211 232 220 209 196 198 192 186 188 186 193 180
Merck & Co. Inc. 212 205 215 221 219 207 203 206 200 182 177 181 199 228 200 192 217 209
Pfizer Inc. 298 288 306 252 242 218 196 206 167 135 160 155 151 159 194 273 362 407
Regeneron Pharmaceuticals Inc. 726 732 734 717 699 677 664 680 700 722 588 511 394 429 562 651 819 802
Thermo Fisher Scientific Inc. 148 142 150 144 142 142 146 146 145 145 148 157 164 168 146 143 147 156
Vertex Pharmaceuticals Inc. 379 340 327 296 286 272 271 252 238 215 194 193 188 198 198 196 198 191

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 98 + 79 = 177

2 Click competitor name to see calculations.


The data reflects trends in the average inventory processing period, average receivable collection period, and operating cycle over a series of quarterly dates from 2020 to 2025.

Average Inventory Processing Period
This metric shows fluctuations over the periods observed. Starting from 79 days in March 2020, the inventory processing period generally decreases to a low of 63 days by December 2020. It then rises and falls moderately until the end of 2022, with values ranging between 65 and 74 days. From early 2023 onwards, there is a noticeable upward trend reaching a peak of 90 days by March 2025. The period varies substantially, indicating some challenges or changes in inventory management or supply chain efficiency over time.
Average Receivable Collection Period
The receivable collection period remains relatively stable around 70 days, with slight variations. Starting at 70 days in March 2020, it declines to 61 days by December 2020 before moving back to the low 70s range during 2021 and 2022. In the years 2023 and 2024, it fluctuates between 71 and 80 days, ending at 79 days in March 2025. This suggests a consistent collection cycle with minor elongation toward the end of the period, which may reflect changing credit policies or customer payment behavior.
Operating Cycle
The operating cycle, representing the sum of the inventory processing and receivable collection periods, generally follows the same trend as its components. Starting at 149 days in March 2020, the cycle shortens to a low of 124 days by December 2020. Afterwards, it increases with some volatility, consistently remaining above 130 days through 2021 and 2022. From 2023 onward, the operating cycle lengthens further, reaching 177 days by March 2025. The prolonged operating cycle indicates extended working capital tied in operations, which may impact liquidity and cash flow management.