AbbVie Inc (ABBV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,325,000 | 10,360,000 | 17,254,000 | 15,408,000 | 13,076,000 |
| ROE | 128.66% | 46.94% | 68.60% | 74.91% | 35.30% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,278,000K ÷ $3,325,000K
= 128.66%
AbbVie Inc's return on equity (ROE) has shown a significant upward trend over the past five years. In December 2020, the ROE stood at 35.30%, indicating a moderate level of profitability relative to the shareholders' equity. This metric saw a substantial increase to 74.91% by December 2021, reflecting a notable improvement in the company's ability to generate profit from shareholders' investments.
By December 2022, AbbVie Inc's ROE remained strong at 68.60%, indicating continued efficiency in utilizing equity to generate earnings. Although there was a slight decline in the ROE to 46.94% by December 2023, the metric remained at a respectable level, suggesting that the company was still generating considerable returns on equity.
The most remarkable increase occurred in December 2024, with AbbVie Inc's ROE soaring to 128.66%. This substantial jump indicates a significant improvement in the company's profitability and efficiency in leveraging shareholders' equity to generate returns. Overall, the trend in AbbVie Inc's ROE over the past five years demonstrates the company's ability to create value for its shareholders and indicates a strong financial performance.
Peer comparison
Dec 31, 2024