AbbVie Inc (ABBV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,360,000 | 17,254,000 | 15,408,000 | 13,076,000 | -8,172,000 |
| ROE | 46.94% | 68.60% | 74.91% | 35.30% | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,863,000K ÷ $10,360,000K
= 46.94%
AbbVie Inc's return on equity (ROE) has shown fluctuations over the past five years. In 2023, the ROE was 46.53%, a decrease from the previous year's 68.29%. This decline could be attributed to various factors such as changes in profitability, leverage, or shareholder equity.
Comparing 2023 to 2021, there is a noticeable downward trend in ROE from 74.43% to 46.53%. This suggests a potential decrease in the company's ability to generate returns on the shareholders' equity during this period. However, it is essential to further investigate the reasons behind this decline to evaluate the company's financial performance accurately.
Overall, AbbVie Inc's ROE has experienced significant fluctuations in recent years, indicating a varying performance in utilizing shareholder equity to generate profits. Further analysis and consideration of other financial metrics are recommended to gain a comprehensive understanding of the company's financial health and efficiency.
Peer comparison
Dec 31, 2023