Abbvie

Key Performance Metrics

  • The review of Gross Profit Margin/Net Profit Margin witnessed a mixed trend. The Net Profit Margin reduced from 23.69% in 2019 to 8.97% in 2023.
  • In the current year, Abbvie was able to cover its interest liabilities 75.75 times in the current year- compared to 2019 when it was 8.6 times.
  • The Return on capital stood at 131.69% in 2023 from 17.66% in 2019, implying a high performance on capital of the business in relation to revenue.

Profitability

  • The revenue of Abbvie has increased year on year. The revenue increased by 38% between 2019 and 2020 and a further 23% increase was recorded between 2020 and There also occurred a decrease of -6% between 2022 and 2023 (the current period).
  • Abbvie’s performance in profitability looks 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 3.18:1/3.06:1 to 0.87:1/0.77:1 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/increasing year on year. The gearing position of the company appears to be high as it stood at 5.02 in the current year.

Source: Abbvie Annual Report

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