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.
Peer comparison
Dec 31, 2023