AbbVie Inc (ABBV)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 9,768,000 | 15,884,000 | 15,503,000 | 15,446,000 | 15,635,000 | 17,189,000 | 19,746,000 | 20,542,000 | 22,087,000 | 22,774,000 | 22,653,000 | 21,647,000 | 20,891,000 | 20,410,000 | 19,048,000 | 16,515,000 | 15,699,000 | 12,676,000 | 12,822,000 | 14,153,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,325,000 | 6,032,000 | 6,778,000 | 8,007,000 | 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 |
| Return on total capital | 293.77% | 263.33% | 228.73% | 192.91% | 150.92% | 142.13% | 153.47% | 154.75% | 128.01% | 142.39% | 154.60% | 132.94% | 135.59% | 150.63% | 151.55% | 120.46% | 120.06% | 83.01% | 87.18% | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $9,768,000K ÷ ($—K + $3,325,000K)
= 293.77%
AbbVie Inc's return on total capital has shown a strong upward trend over the years, indicating the company's ability to generate significant returns on the capital employed in its operations. The ratio increased consistently from 87.18% in June 2020 to 293.77% in December 2024. Particularly noteworthy is the substantial increase in the ratio from March 2024 to December 2024, reaching a high of 293.77%.
This demonstrates AbbVie's increasing efficiency in utilizing its total capital to generate profits. A high return on total capital suggests that the company is effectively leveraging its resources and investments to create value for its shareholders. It also indicates the company's strong operational performance and potential for sustainable growth in the future.
Overall, AbbVie Inc's return on total capital has displayed a positive trajectory over the period under review, reflecting the company's profitability and efficiency in utilizing its assets and capital effectively.
Peer comparison
Dec 31, 2024