AbbVie Inc (ABBV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,863,000 | 11,836,000 | 11,542,000 | 4,616,000 | 7,882,000 |
| Total assets | US$ in thousands | 134,711,000 | 138,805,000 | 146,529,000 | 150,565,000 | 89,115,000 |
| ROA | 3.61% | 8.53% | 7.88% | 3.07% | 8.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $4,863,000K ÷ $134,711,000K
= 3.61%
The return on assets (ROA) for Abbvie Inc has shown fluctuation over the past five years. In 2023, the ROA decreased to 3.58% from 8.49% in 2022, indicating a decline in the company's ability to generate profits relative to its assets. This decrease follows a positive trend from 2020 to 2022, where ROA increased from 3.03% to 8.49%, showcasing improved efficiency in asset utilization.
Comparing the 2023 ROA to the peak of 8.80% in 2019, there has been a notable decline in the company's profitability relative to its total assets. It is essential for Abbvie Inc to closely monitor its asset management strategies to ensure sustainable and efficient use of resources to maximize returns for its shareholders.
Peer comparison
Dec 31, 2023