AbbVie Inc (ABBV)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 45,416,000 | 41,133,000 | 37,495,000 | 32,486,000 | 7,439,000 |
| Inventory | US$ in thousands | 4,099,000 | 3,579,000 | 3,128,000 | 3,310,000 | 1,813,000 |
| Inventory turnover | 11.08 | 11.49 | 11.99 | 9.81 | 4.10 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $45,416,000K ÷ $4,099,000K
= 11.08
The inventory turnover ratio for Abbvie Inc has shown a generally increasing trend over the five-year period from 2019 to 2023. The ratio improved from 4.10 in 2019 to 4.98 in 2023, indicating the company managed its inventory more efficiently over the years. A higher inventory turnover ratio implies that Abbvie Inc is selling its products more quickly and effectively converting inventory into sales.
The 2021 figure of 5.58 is the highest in the five-year period, reflecting the company's strong inventory management during that year. However, the ratio slightly decreased to 4.87 in 2022 before increasing again in 2023.
Overall, the trend suggests that Abbvie Inc has been successful in optimizing its inventory levels and turnover rate, which is a positive sign of effective inventory management and potential operational efficiency within the company.
Peer comparison
Dec 31, 2023