AbbVie Inc (ABBV)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	16,904,000	20,415,000	17,414,000	17,446,000	15,387,000
Inventory	US$ in thousands	4,181,000	4,099,000	3,579,000	3,128,000	3,310,000
Inventory turnover		4.04	4.98	4.87	5.58	4.65

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $16,904,000K ÷ $4,181,000K
= 4.04

AbbVie Inc's inventory turnover has shown some variability over the past five years. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times inventory is sold and replaced in a period.

In December 2020, AbbVie had an inventory turnover ratio of 4.65, which means the company sold and replaced its inventory approximately 4.65 times during that year. This indicates a moderate efficiency in managing inventory.

By December 2021, the inventory turnover ratio improved to 5.58, indicating that AbbVie became more efficient in managing its inventory by selling and replacing stock more frequently.

However, in the following years, there was some fluctuation in the inventory turnover ratio. In December 2022 and December 2023, the ratio stood at 4.87 and 4.98, respectively, showing a slight decrease in inventory turnover efficiency compared to the previous year.

In December 2024, AbbVie's inventory turnover ratio dropped to 4.04, suggesting a decrease in the company's ability to swiftly sell and replace its inventory compared to the previous year.

Overall, while there have been fluctuations in AbbVie's inventory turnover ratio over the years, it is essential for the company to closely monitor and potentially improve its inventory management practices to maintain optimal efficiency in handling its inventory levels.