AbbVie Inc (ABBV)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	4,863,000	6,514,000	8,685,000	7,585,000	11,836,000	13,407,000	12,637,000	12,479,000	11,542,000	7,534,000	6,663,000	5,159,000	4,616,000	7,381,000	6,957,000	8,436,000	7,882,000	3,255,000	4,118,000	5,360,000
Total stockholders’ equity	US$ in thousands	10,360,000	12,094,000	12,866,000	13,274,000	17,254,000	15,994,000	14,653,000	16,283,000	15,408,000	13,550,000	12,569,000	13,710,000	13,076,000	15,270,000	14,708,000	-7,415,000	-8,172,000	-8,226,000	-8,566,000	-7,826,000
ROE		46.94%	53.86%	67.50%	57.14%	68.60%	83.83%	86.24%	76.64%	74.91%	55.60%	53.01%	37.63%	35.30%	48.34%	47.30%	—	—	—	—	—

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,863,000K ÷ $10,360,000K
= 46.94%

AbbVie Inc's return on equity (ROE) has been fluctuating over the past eight quarters. The ROE decreased from 85.79% in Q2 2022 to 46.53% in Q4 2023, indicating a significant decline in profitability generated from shareholders' equity during this period. However, the ROE has shown some variability between the quarters, with higher values such as 83.43% in Q3 2022 and 67.17% in Q2 2023.

The downward trend in ROE suggests that AbbVie Inc may be facing challenges in generating profits from the shareholders' equity investment. It is essential for the company to investigate the factors behind this decline in ROE and take appropriate measures to improve profitability and efficiency in utilizing equity capital. Monitoring and analyzing ROE over time can provide valuable insights into the company's financial performance and its ability to generate returns for its shareholders.