AbbVie Inc (ABBV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 54,318,000 | 58,054,000 | 56,197,000 | 45,804,000 | 33,266,000 |
| Property, plant and equipment | US$ in thousands | 4,989,000 | 4,935,000 | 5,110,000 | 5,248,000 | 2,962,000 |
| Fixed asset turnover | 10.89 | 11.76 | 11.00 | 8.73 | 11.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $54,318,000K ÷ $4,989,000K
= 10.89
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more efficiently to generate sales.
Analyzing AbbVie Inc's fixed asset turnover over the past five years, we can observe fluctuations in the ratio. In 2023, the fixed asset turnover was 10.89, a decrease from the previous year's ratio of 11.76 in 2022. This implies that in 2023, AbbVie generated $10.89 in revenue for every dollar invested in fixed assets. Despite the decrease in 2023, the ratio remains relatively high, suggesting efficient utilization of fixed assets.
Comparing 2023 to earlier years, the fixed asset turnover was also higher than in 2020 (8.73) and 2021 (11.00), indicating an improvement in the company's efficiency in generating sales from fixed assets. However, it was lower than the ratio in 2019 (11.23), reflecting a slight decline in asset turnover efficiency compared to that year.
Overall, AbbVie Inc's fixed asset turnover shows variations over the years, but the company generally appears to be effectively utilizing its fixed assets to generate sales revenue. Further analysis and comparison with industry benchmarks could provide additional insights into AbbVie's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023