AbbVie Inc (ABBV)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	135,161,000	134,711,000	138,805,000	146,529,000	150,565,000
Total stockholders’ equity	US$ in thousands	3,325,000	10,360,000	17,254,000	15,408,000	13,076,000
Financial leverage ratio		40.65	13.00	8.04	9.51	11.51

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $135,161,000K ÷ $3,325,000K
= 40.65

The financial leverage ratio for AbbVie Inc has experienced fluctuations over the past five years. As of December 31, 2020, the ratio stood at 11.51, indicating a relatively high level of financial leverage. Over the subsequent years, the ratio declined to 9.51 by December 31, 2021, and further decreased to 8.04 by December 31, 2022, suggesting a decreasing reliance on debt to finance operations.

However, a significant shift occurred by December 31, 2023, where the financial leverage ratio spiked to 13.00, signaling a potential increase in leverage or debt usage during that period. This sudden rise may warrant further investigation into the company's financing strategies and debt management.

By the end of December 31, 2024, the financial leverage ratio soared to 40.65, representing a substantial jump in leverage. An elevated financial leverage ratio may indicate increased financial risk and dependency on debt, which could potentially impact the company's financial stability and ability to meet its debt obligations in the future.

Overall, the fluctuating trend in AbbVie Inc's financial leverage ratio highlights the company's varying levels of reliance on debt financing over the years, underscoring the importance of closely monitoring and managing leverage ratios to ensure financial health and sustainability.