AbbVie Inc (ABBV)
Cash conversion cycle
| 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | 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 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 102.65 + — – —
= 102.65
The cash conversion cycle for AbbVie Inc has fluctuated over the past few years, indicating variations in the company's efficiency in managing its working capital.
From March 31, 2020, to June 30, 2020, there was a significant increase in the cash conversion cycle from 87.56 days to 154.66 days, suggesting a potential delay in converting inventory and receivables into cash.
Subsequently, there was a notable decrease in the cash conversion cycle to 78.52 days by December 31, 2020, indicating a potential improvement in efficiency. This trend continued through March 31, 2021, where the cycle decreased further to 67.63 days.
From September 30, 2021, to December 31, 2021, the cash conversion cycle remained relatively stable within a range of 63.41 to 65.44 days, indicating consistent working capital management during this period.
However, from March 31, 2022, to September 30, 2024, there were fluctuations in the cycle, reaching a peak of 126.34 days on September 30, 2024. These fluctuations suggest potential challenges or changes in the company's working capital efficiency during this period.
Overall, analyzing the cash conversion cycle can provide insights into AbbVie Inc's ability to efficiently manage its working capital, optimize cash flow, and convert resources into cash effectively.
Peer comparison
Dec 31, 2024