Abbvie

Key Performance Metrics

  • The review of Gross Profit Margin/Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 18.82% in 2017 to 20.55% in 2021.
  • In the current year, Abbvie was able to cover its interest liabilities 7.52 times in the current year- compared to 2017 when it was 9.51 times.
  • The capital turnover stood at 0.50 times in 2021 from 0.52 in 2017, implying a low/high performance on capital of the business in relation to revenue.

Profitability

  • The revenue of Abbvie has increased year on year. The revenue decreased/increased by 16.1% between 2017 and 2018 and a further 1.6% increase was recorded between 2018 and 2019. There also occurred an increase of 22.7% between 2020 and 2021 (the current period). 
  • Abbvie’s performance in profitability looks bad/good as the return on capital employed also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio/acid test decreased from 0.84:1/0.73:1 to 0.79:1/0.70:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Abbvie is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 416% in the current year.

Source: Abbvie Annual Report

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