The review of 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 capital turnover stood at 0.45 times in 2023 from 0.56 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 2021. 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.
