AbbVie Inc (ABBV)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,278,000 | 4,863,000 | 11,836,000 | 11,542,000 | 4,616,000 |
| Total assets | US$ in thousands | 135,161,000 | 134,711,000 | 138,805,000 | 146,529,000 | 150,565,000 |
| ROA | 3.17% | 3.61% | 8.53% | 7.88% | 3.07% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,278,000K ÷ $135,161,000K
= 3.17%
Based on the provided data, AbbVie Inc's return on assets (ROA) has shown fluctuations over the past five years. In December 2020, the ROA was 3.07%, indicating that for every dollar of assets, the company generated a return of 3.07 cents.
The ROA experienced a significant increase to 7.88% by December 2021, suggesting improved efficiency in asset utilization. This positive trend continued in December 2022, reaching 8.53%, which signifies the company's ability to generate higher profits relative to its assets.
However, there was a decline in ROA in December 2023 to 3.61%, possibly indicating challenges in maintaining the same level of profitability relative to its assets. This trend continued in December 2024, with the ROA further decreasing to 3.17%.
Overall, while there have been fluctuations in AbbVie Inc's ROA over the years, it is essential for investors and stakeholders to continue monitoring this ratio to assess the company's efficiency in generating profits from its assets.
Peer comparison
Dec 31, 2024