AbbVie Inc (ABBV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,464,000 | 10,222,000 | 12,674,000 | 11,250,000 | 15,698,000 | 17,016,000 | 16,342,000 | 16,382,000 | 15,405,000 | 9,675,000 | 8,517,000 | 6,682,000 | 5,846,000 | 10,359,000 | 9,715,000 | 10,940,000 | 10,210,000 | 4,584,000 | 5,203,000 | 6,370,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 81.70% | 84.52% | 98.51% | 84.75% | 90.98% | 106.39% | 111.53% | 100.61% | 99.98% | 71.40% | 67.76% | 48.74% | 44.71% | 67.84% | 66.05% | — | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,464,000K ÷ ($—K + $10,360,000K)
= 81.70%
AbbVie Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 19.15% to 24.56%. The company's ability to generate returns from its total capital has shown a positive trend, with an average return of approximately 21.94% during this period.
The highest return on total capital was recorded in Q2 2023 at 24.56%, demonstrating AbbVie's strong performance in efficiently utilizing its total capital to generate profits. On the other hand, the lowest return was in Q4 2023 at 19.15%, which was still within a reasonable range compared to previous quarters.
Overall, AbbVie Inc's consistent and solid return on total capital indicates strong financial performance and effective management of its capital resources. Investors and stakeholders can consider this metric as a key indicator of the company's profitability and efficiency in deploying its capital.
Peer comparison
Dec 31, 2023