AbbVie Inc (ABBV)
Inventory turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 36,852,000 | 35,318,000 | 34,557,000 | 36,331,000 | 35,682,000 | 35,832,000 | 34,109,000 | 32,414,000 | 32,444,000 | 32,808,000 | 33,431,000 | 32,382,000 | 27,416,000 | 24,738,000 | 16,662,000 | 9,843,000 | 7,439,000 | 7,455,000 | 7,370,000 | 7,485,000 |
| Inventory | US$ in thousands | 4,099,000 | 3,981,000 | 4,055,000 | 3,833,000 | 3,579,000 | 3,172,000 | 3,396,000 | 3,483,000 | 3,128,000 | 3,094,000 | 3,386,000 | 3,272,000 | 3,310,000 | 3,474,000 | 4,059,000 | 1,844,000 | 1,813,000 | 1,929,000 | 1,895,000 | 1,702,000 |
| Inventory turnover | 8.99 | 8.87 | 8.52 | 9.48 | 9.97 | 11.30 | 10.04 | 9.31 | 10.37 | 10.60 | 9.87 | 9.90 | 8.28 | 7.12 | 4.10 | 5.34 | 4.10 | 3.86 | 3.89 | 4.40 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $36,852,000K ÷ $4,099,000K
= 8.99
AbbVie Inc's inventory turnover has shown some fluctuations over the past eight quarters, ranging from a low of 4.30 in Q2 2023 to a high of 5.54 in Q3 2022. The inventory turnover ratio indicates how efficiently the company is managing its inventory levels. A higher turnover ratio suggests that inventory is being sold quickly, which is generally positive as it reduces the risk of obsolescence and carrying costs.
Despite the fluctuations, AbbVie's inventory turnover has generally remained within a fairly narrow range, indicating relatively stable inventory management practices. However, the slight decrease in Q2 2023 compared to the previous quarters may indicate a slower rate of inventory turnover during that period, which could potentially lead to increased carrying costs or excess inventory levels.
Overall, AbbVie's inventory turnover ratio seems to reflect effective inventory management, but analysts may want to further investigate the reasons behind the fluctuations in order to assess the impact on the company's financial performance and operations.
Peer comparison
Dec 31, 2023
Dec 31, 2023