AbbVie Inc (ABBV)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 90.28 | 73.29 | 75.02 | 65.44 | 78.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 90.28 | 73.29 | 75.02 | 65.44 | 78.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 90.28 + — – —
= 90.28
The cash conversion cycle of AbbVie Inc has shown varying trends over the past five years. In December 2020, the cash conversion cycle was at 78.52 days, indicating that it took the company approximately 78.52 days to convert its investments in inventory and accounts receivable into cash.
By December 2021, there was a decrease in the cash conversion cycle to 65.44 days, which suggests an improvement in the efficiency of AbbVie's working capital management. The company was able to convert its investments into cash more quickly compared to the previous year.
In 2022, the cash conversion cycle increased to 75.02 days, indicating a slight deterioration in the efficiency of AbbVie's working capital management. However, by December 2023, there was a slight improvement with the cash conversion cycle decreasing to 73.29 days.
The most significant change was observed in December 2024 when the cash conversion cycle significantly increased to 90.28 days. This may imply that AbbVie faced challenges in converting its investments into cash efficiently, potentially indicating issues in managing its working capital effectively.
Overall, fluctuations in the cash conversion cycle of AbbVie Inc over the years suggest the need for continuous monitoring and potential adjustments in its working capital management strategies to ensure optimal cash flow efficiency.
Peer comparison
Dec 31, 2024