AbbVie Inc (ABBV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.39% | 29.15% | 33.28% | 29.08% | 77.64% |
| Operating profit margin | 23.49% | 31.21% | 31.89% | 24.81% | 39.03% |
| Pretax margin | 11.49% | 23.20% | 23.10% | 7.41% | 25.33% |
| Net profit margin | 8.95% | 20.39% | 20.54% | 10.08% | 23.69% |
Based on the profitability ratios of Abbvie Inc over the past five years, several trends can be noted:
1. Gross Profit Margin: The gross profit margin has been fluctuating, with a decrease from 2019 to 2020 followed by an increase in 2021 and a slight decrease in 2022. In 2023, the gross profit margin further decreased to 62.42%. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin also shows variability, with a significant drop in 2020, followed by a recovery in subsequent years. However, there was a notable decline in 2023 to 24.59%. This ratio reflects the company's ability to generate profits from its core operations after deducting operating expenses.
3. Pretax Margin: The pretax margin saw a notable increase from 2019 to 2020, followed by fluctuations in the following years. In 2023, there was a significant drop to 11.51%. This ratio indicates the company's profitability before accounting for taxes, showing the portion of revenue that translates into pre-tax profits.
4. Net Profit Margin: The net profit margin also shows variability, with a decrease in 2020, followed by a recovery in subsequent years. However, in 2023, there was a substantial decline to 8.87%. This ratio reveals the company's profitability after accounting for all expenses, including taxes, providing insight into the final percentage of revenue retained as net income.
Overall, while Abbvie Inc has shown fluctuations in its profitability ratios over the past five years, it is important to assess these ratios in conjunction with other financial metrics and industry benchmarks for a comprehensive evaluation of the company's financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.47% | 13.05% | 12.23% | 7.55% | 14.57% |
| Return on assets (ROA) | 3.61% | 8.53% | 7.88% | 3.07% | 8.84% |
| Return on total capital | 81.70% | 90.98% | 99.98% | 44.71% | — |
| Return on equity (ROE) | 46.94% | 68.60% | 74.91% | 35.30% | — |
AbbVie Inc's profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has fluctuated, with a notable decrease in 2020 followed by a recovery in subsequent years. This ratio indicates the company's ability to generate profits from its assets used in operations.
2. Return on assets (ROA) also experienced fluctuations, reaching a peak in 2022 before declining in the following years. ROA measures AbbVie's overall efficiency in utilizing its assets to generate profits.
3. Return on total capital saw an upward trend from 2020 to 2022, indicating the company's ability to generate returns for both debt and equity holders relative to the total capital employed.
4. Return on equity (ROE) displays a significant increase from 2019 to 2022, suggesting that AbbVie was able to generate higher returns for its shareholders during this period.
Overall, these profitability ratios reflect AbbVie Inc's performance in generating profits relative to its assets, capital structure, and equity holders over the past five years. It is essential for investors and stakeholders to analyze these ratios in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health and performance.