AbbVie Inc (ABBV)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 130.12 | — | — | — | — | — | 0.97 |
AbbVie Inc's inventory turnover ratio has shown some fluctuations over the years, ranging from a low of 2.36 to a high of 5.76. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory more efficiently.
The receivables turnover ratio for AbbVie Inc is not available in the data provided, which limits the assessment of how quickly the company collects its accounts receivable.
The payables turnover ratio is also not provided, making it challenging to evaluate how quickly AbbVie Inc is paying its suppliers.
The working capital turnover ratio for AbbVie Inc has been sporadic, with a notable increase to 130.12 on September 30, 2021. A higher working capital turnover ratio generally signifies that the company is utilizing its working capital effectively to generate sales.
Overall, it is essential for AbbVie Inc to monitor and manage these activity ratios effectively to ensure optimal operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 102.65 | 126.34 | 101.76 | 90.12 | 87.51 | 76.96 | 84.97 | 80.65 | 75.02 | 65.92 | 73.21 | 73.55 | 65.44 | 63.41 | 66.91 | 67.63 | 78.52 | 99.77 | 154.66 | 87.56 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, AbbVie Inc's activity ratios exhibit fluctuations over the observed periods.
1. Days of Inventory on Hand (DOH):
- AbbVie's DOH ranged from a low of 63.41 days (September 30, 2021) to a high of 126.34 days (September 30, 2024) during the period.
- Generally, a lower number of days of inventory on hand is preferable as it implies faster turnover and better inventory management.
- The company experienced a significant spike in DOH in September 30, 2024, indicating a potential issue with inventory management or sales performance that led to excess inventory.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO, indicating a lack of data on the collection of accounts receivable.
- DSO is a measure of how efficiently a company manages its accounts receivable, so the absence of this data limits the analysis of AbbVie's receivables management.
3. Number of Days of Payables:
- Similar to DSO, there is no information provided on the number of days of payables, which hinders the evaluation of AbbVie's payables management.
- The management of payables is essential to optimize cash flow and working capital efficiency, so the absence of this data prevents insights into the company's payment practices.
In summary, while the data on AbbVie Inc's DOH provides some insights into its inventory management, the lack of information on DSO and payables limits the comprehensive analysis of the company's overall activity ratios and working capital efficiency.
See also:
AbbVie Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 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 |
| Total asset turnover | 0.42 | 0.39 | 0.39 | 0.37 | 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 |
The fixed asset turnover ratio for AbbVie Inc has shown a consistent upward trend over the years, indicating that the company is generating more revenue per dollar invested in fixed assets. This trend reflects efficient utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio, which includes all assets (both fixed and current), demonstrates a gradual improvement in AbbVie's efficiency in generating sales from its total asset base. The ratio has been steadily increasing, suggesting that the company is becoming more effective at utilizing its total assets to generate revenue.
Overall, both the fixed asset turnover and total asset turnover ratios for AbbVie Inc indicate an improvement in asset utilization efficiency, which is a positive sign for the company's long-term operational performance and financial health.
See also:
AbbVie Inc Long-term (Investment) Activity Ratios (Quarterly Data)