AbbVie Inc (ABBV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.04 | 4.98 | 4.87 | 5.58 | 4.65 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
The activity ratios for AbbVie Inc provide insight into the efficiency of the company's operations.
1. Inventory Turnover:
- The inventory turnover ratio measures how effectively a company is managing its inventory.
- AbbVie's inventory turnover has increased from 4.65 in 2020 to 5.58 in 2021, which indicates that the company is selling its inventory more quickly.
- However, there was a slight decrease to 4.87 in 2022 and then a slight increase to 4.98 in 2023 before dropping to 4.04 in 2024. This suggests some fluctuation in managing inventory levels efficiently during these years.
- Overall, a higher inventory turnover ratio is generally more favorable as it indicates that the company is selling its products quickly.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company is collecting on its credit sales.
- Based on the provided data, there is no information available for receivables turnover for any of the years (noted as "—"). Consequently, it is not possible to assess AbbVie's effectiveness in collecting payments from its customers.
3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company is paying off its suppliers.
- Similar to receivables turnover, there is no data available for payables turnover for any of the years provided (noted as "—"). As a result, the efficiency of AbbVie in managing its payables is unknown.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales.
- For all the years, there is no data available for working capital turnover (noted as "—"), making it impossible to analyze AbbVie's ability to convert working capital into sales.
In conclusion, while the inventory turnover ratio provides some insight into AbbVie's inventory management efficiency, the absence of data for receivables turnover, payables turnover, and working capital turnover limits a more complete assessment of the company's overall operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.28 | 73.29 | 75.02 | 65.44 | 78.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
AbbVie Inc's days of inventory on hand (DOH) have shown a decreasing trend from 78.52 days in December 2020 to 65.44 days in December 2021, followed by an increase to 75.02 days in December 2022, and then a slight decrease to 73.29 days in December 2023, with a noticeable jump to 90.28 days by December 2024. This indicates that the company is managing its inventory levels more efficiently in the short term but may need to monitor and control inventory levels to avoid overstocking in the future.
The days of sales outstanding (DSO) and number of days of payables data are missing for all years, making it challenging to assess the efficiency of AbbVie Inc's accounts receivable and accounts payable management. It is essential for the company to have this information to evaluate how quickly it collects payments from customers and manages its payables effectively.
In summary, while AbbVie Inc has seen fluctuations in its days of inventory on hand, the absence of data on DSO and payables days hinders a comprehensive analysis of the company's overall activity ratios related to inventory, accounts receivable, and accounts payable management.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 11.76 | 11.00 | 8.73 |
| Total asset turnover | 0.42 | 0.40 | 0.42 | 0.38 | 0.30 |
Based on the provided data for AbbVie Inc's long-term activity ratios, we can observe the following trends:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures a company's ability to generate sales from its investment in property, plant, and equipment.
- AbbVie Inc's fixed asset turnover has been increasing steadily over the years, from 8.73 in 2020 to 11.00 in 2021 and further to 11.76 in 2022.
- The significant increase in the fixed asset turnover ratio indicates that AbbVie Inc has been effectively utilizing its fixed assets to generate revenues.
2. Total Asset Turnover:
- The total asset turnover ratio measures a company's efficiency in generating sales from its total assets.
- AbbVie Inc's total asset turnover has also shown a positive trend, increasing from 0.30 in 2020 to 0.42 in both 2022 and 2024, with a slight dip to 0.38 in 2021 and 0.40 in 2023.
- The increasing total asset turnover ratio suggests that AbbVie Inc is efficiently utilizing its total assets to generate sales and revenue.
Overall, the improving trends in both fixed asset turnover and total asset turnover ratios indicate that AbbVie Inc is effectively utilizing its assets, both fixed and total, to generate sales and revenue, which is a positive sign of operational efficiency and effective asset management.