AbbVie Inc (ABBV)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	—

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,325,000K
= 0.00

The debt-to-equity ratio for AbbVie Inc over the past several periods has consistently remained at 0.00. This indicates that the company has been financing its operations and growth primarily through equity rather than debt. A debt-to-equity ratio of 0.00 means that there is no financial leverage being used by the company, as there is no debt in the capital structure in relation to equity.

Having a low or zero debt-to-equity ratio can be viewed positively as it suggests lower financial risk and greater financial stability for the company. It also indicates that AbbVie Inc may have strong access to equity financing or sufficient cash reserves to support its operations and capital investments without relying on debt.

However, it is essential to note that while a low debt-to-equity ratio can be advantageous, it may also indicate missed opportunities for leveraging debt financing to potentially enhance returns on equity. Overall, maintaining a zero debt-to-equity ratio reflects a conservative financial strategy by AbbVie Inc, emphasizing financial stability and minimizing the risks associated with excessive debt.