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.