AbbVie Inc (ABBV)
Payables 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 |
| Payables | US$ in thousands | 3,688,000 | 2,934,000 | 2,882,000 | 2,276,000 | 1,452,000 |
| Payables turnover | 12.31 | 14.02 | 13.01 | 14.27 | 5.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $45,416,000K ÷ $3,688,000K
= 12.31
AbbVie Inc's payables turnover ratio has fluctuated over the past five years. The ratio decreased from 6.76 in 2020 to 5.12 in 2019 before gradually increasing to 5.94 in 2022. In the most recent year, as of December 31, 2023, the payables turnover ratio improved slightly to 5.54. This ratio indicates how efficiently AbbVie is managing its accounts payable. A higher turnover ratio generally suggests that the company is paying off its suppliers more quickly, which could imply strong liquidity or negotiation power with suppliers. It is worth monitoring this ratio over time to assess any trends or changes in AbbVie's payment practices and working capital management.
Peer comparison
Dec 31, 2023