AbbVie Inc (ABBV)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 14,866,000 | 12,856,000 | 15,129,000 | 17,193,000 | 17,097,000 | 18,881,000 | 17,418,000 | 17,348,000 | 17,414,000 | 17,564,000 | 16,932,000 | 17,285,000 | 17,446,000 | 17,810,000 | 18,470,000 | 17,658,000 | 15,387,000 | 12,709,000 | 9,579,000 | 7,687,000 |
| Inventory | US$ in thousands | 4,181,000 | 4,450,000 | 4,218,000 | 4,245,000 | 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 |
| Inventory turnover | 3.56 | 2.89 | 3.59 | 4.05 | 4.17 | 4.74 | 4.30 | 4.53 | 4.87 | 5.54 | 4.99 | 4.96 | 5.58 | 5.76 | 5.45 | 5.40 | 4.65 | 3.66 | 2.36 | 4.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,866,000K ÷ $4,181,000K
= 3.56
AbbVie Inc's inventory turnover ratio fluctuated over the past five years. The inventory turnover ratio measures how efficiently a company is managing its inventory by indicating how many times the inventory is sold and replaced during a specific period.
From December 31, 2020, to March 31, 2024, AbbVie Inc's inventory turnover ratio ranged from 2.89 to 5.76. The increase in the ratio from 2.89 to 5.76 signifies a significant improvement in inventory management efficiency. Generally, a higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently.
However, the ratio slightly decreased in the most recent period, dropping from 5.76 on September 30, 2021, to 3.56 on December 31, 2024. This decline may suggest potential issues such as overstocking or slowing sales, which could impact the company's cash flow and profitability.
Overall, it's essential for AbbVie Inc to closely monitor its inventory turnover ratio to ensure optimal inventory management and identify any potential inefficiencies that may impact its financial performance in the future.
Peer comparison
Dec 31, 2024
Dec 31, 2024