AbbVie Inc (ABBV)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	10,360,000	17,254,000	15,408,000	13,076,000	-8,172,000
Debt-to-capital ratio		0.00	0.00	0.00	0.00	—

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $10,360,000K)
= 0.00

Based on the provided data, Abbvie Inc's debt-to-capital ratio has shown fluctuation over the past five years. The ratio decreased from 1.14 in 2019 to 0.85 in 2023, indicating a reduction in the proportion of debt in the company's capital structure. This trend suggests that Abbvie Inc has been managing its debt levels relative to its total capital more effectively in recent years.

The decreasing trend in the debt-to-capital ratio from 2020 to 2023 implies that the company may have been focusing on deleveraging or using more equity financing to fund its operations. This could potentially indicate improved financial stability and reduced financial risk for Abbvie Inc.

However, it is important to note that a debt-to-capital ratio of 0.85 in 2023 still indicates that a significant portion of Abbvie Inc's capital structure is financed by debt. While the decreasing trend is positive, investors and stakeholders should continue to monitor the company's debt management strategies and overall financial health to ensure long-term sustainability.

Overall, the trend in Abbvie Inc's debt-to-capital ratio highlights the company's efforts to maintain a balanced capital structure and manage its debt effectively over the past five years.