AbbVie Inc (ABBV)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	9,137,000	12,757,000	18,117,000	17,924,000	11,363,000
Total assets	US$ in thousands	135,161,000	134,711,000	138,805,000	146,529,000	150,565,000
Operating ROA		6.76%	9.47%	13.05%	12.23%	7.55%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $9,137,000K ÷ $135,161,000K
= 6.76%

Operating Return on Assets (Operating ROA) is a crucial financial metric that measures a company's ability to generate earnings from its operational assets. Analyzing AbbVie Inc's Operating ROA data from 2020 to 2024 reveals fluctuations in the company's efficiency in utilizing its assets to generate operating income.

In 2020, AbbVie Inc had an Operating ROA of 7.55%, indicating that the company generated approximately 7.55 cents of operating income for every dollar of assets employed in its operations. Over the next few years, AbbVie Inc's Operational ROA showed a positive trend, increasing to 12.23% by the end of 2021 and reaching its peak at 13.05% by the end of 2022. This upward trend suggests that AbbVie Inc was becoming more efficient in generating operating income from its assets.

However, in 2023, AbbVie Inc's Operating ROA declined to 9.47%, indicating a potential decrease in the company's efficiency in utilizing its assets to generate operating income. The trend continued in 2024 as AbbVie Inc's Operating ROA further dropped to 6.76%.

Overall, while AbbVie Inc demonstrated an improvement in operational efficiency from 2020 to 2022, the subsequent decline in Operating ROA in 2023 and 2024 suggests a potential inefficiency in asset utilization during those periods. Further analysis of the company's financial and operational strategies may be needed to address the decline and enhance its ability to generate operating income from its assets in the future.