AbbVie Inc (ABBV)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	4.87	4.83	4.88	4.95	5.16	5.38	5.10	5.29	5.63	5.94	5.42	5.24	5.19	4.83	4.34	5.35	6.13	5.94	5.95	5.75
Payables turnover	9.99	—	—	—	12.16	—	—	—	11.26	—	—	—	12.05	—	—	—	5.12	—	—	—
Working capital turnover	—	—	—	—	—	—	—	—	—	130.12	—	—	—	—	—	0.97	0.98	12.30	—	64.14

AbbVie Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.

1. Inventory Turnover: AbbVie Inc's inventory turnover ratio has shown some fluctuations over the quarters, ranging from 4.30 to 5.54. A higher inventory turnover indicates that the company is selling its products quickly. AbbVie's inventory turnover has generally remained quite stable, indicating efficient management of its inventory levels.

2. Receivables Turnover: The company's receivables turnover ratio has ranged from 4.83 to 5.38 over the quarters. A higher receivables turnover ratio suggests that the company is collecting its accounts receivable efficiently. AbbVie's consistent performance in this ratio indicates effective credit management and timely collection of receivables.

3. Payables Turnover: The data shows payables turnover only for Q4 2022 and Q4 2023, at 5.94 and 5.54, respectively. A higher payables turnover ratio implies that the company is paying its suppliers more quickly. The ratios suggest that AbbVie Inc has been managing its payables efficiently, but a comparison across more quarters would provide a better understanding of its performance in this area.

4. Working Capital Turnover: The data did not provide working capital turnover ratios for any of the quarters. This ratio measures how effectively a company utilizes its working capital to generate sales. A higher ratio indicates efficient use of working capital. Without this data, it is challenging to assess AbbVie's performance in utilizing its working capital for generating revenue.

In conclusion, AbbVie Inc's activity ratios, particularly inventory turnover and receivables turnover, indicate efficient management of inventory and timely collection of receivables. The limited data on payables turnover and the absence of working capital turnover ratios make it challenging to provide a comprehensive analysis of AbbVie's overall activity performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	40.60	41.14	42.83	38.51	36.61	32.31	36.34	39.22	35.19	34.42	36.97	36.88	44.07	51.26	88.92	68.38	88.96	94.44	93.85	83.00
Days of sales outstanding (DSO)	days	74.96	75.54	74.87	73.80	70.76	67.82	71.52	69.06	64.80	61.40	67.35	69.72	70.30	75.57	84.17	68.18	59.56	61.40	61.33	63.50
Number of days of payables	days	36.53	—	—	—	30.01	—	—	—	32.42	—	—	—	30.30	—	—	—	71.24	—	—	—

Days of inventory on hand (DOH) measures how efficiently Abbvie Inc manages its inventory. A decreasing trend in DOH indicates that the company is selling its products faster. In Q4 2023, the DOH decreased to 73.29 days from 76.96 days in Q3 2023, suggesting improved inventory management.

Days of sales outstanding (DSO) reflects how quickly the company collects on its receivables. A declining DSO indicates that Abbvie Inc is collecting payments more quickly. In Q4 2023, the DSO increased to 74.96 days from 73.80 days in Q1 2023, potentially indicating a moderate slowdown in collections.

Number of days of payables shows how long it takes the company to pay its suppliers. An increase in this ratio may suggest that Abbvie Inc is taking longer to pay its bills. In Q4 2023, the number of days of payables increased to 65.94 days from 61.50 days in Q4 2022, indicating a potential extension in payment terms to suppliers.

Overall, these activity ratios suggest that Abbvie Inc is managing its inventory efficiently and is improving its collections process, but may be taking longer to pay its suppliers. The company should continue monitoring and optimizing these ratios to enhance its operational efficiency.

Long-term

	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
Fixed asset turnover	10.89	11.18	11.33	11.51	11.76	11.82	11.57	11.18	11.00	10.75	10.41	9.67	8.73	8.15	7.38	11.50	11.23	11.36	11.33	11.42
Total asset turnover	0.40	0.40	0.41	0.42	0.42	0.41	0.40	0.40	0.38	0.37	0.36	0.33	0.30	0.27	0.24	0.37	0.37	0.55	0.57	0.58

The fixed asset turnover ratio for Abbvie Inc has been consistently high over the last eight quarters, ranging from 10.89 to 11.82. This indicates that the company is generating substantial revenue relative to its investment in fixed assets. The trend suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been relatively stable, fluctuating between 0.40 and 0.42. This ratio signifies the company's ability to generate sales revenue in relation to its total assets. Although the ratio is lower compared to the fixed asset turnover, it is in line with industry averages and reflects the company's effective use of its total assets to generate revenue.

Overall, the high fixed asset turnover and stable total asset turnover ratios indicate Abbvie Inc's efficient management of assets to drive sales and revenue generation.