AbbVie Inc (ABBV)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 135,161,000 | 143,422,000 | 141,937,000 | 148,874,000 | 134,711,000 | 136,221,000 | 135,367,000 | 134,544,000 | 138,805,000 | 141,325,000 | 143,186,000 | 143,211,000 | 146,529,000 | 148,858,000 | 147,972,000 | 150,501,000 | 150,565,000 | 149,621,000 | 149,530,000 | 91,199,000 |
| 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 |
| Financial leverage ratio | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | 9.51 | 10.99 | 11.77 | 10.98 | 11.51 | 9.80 | 10.17 | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $135,161,000K ÷ $3,325,000K
= 40.65
The financial leverage ratio of AbbVie Inc has been fluctuating over the period from March 31, 2020, to December 31, 2024. The ratio started at an undisclosed value on March 31, 2020, and then increased gradually to reach 11.51 on December 31, 2020. Subsequently, there was some variability in the ratio, but it generally trended downwards to 8.04 by December 31, 2022. However, starting from March 31, 2023, the financial leverage ratio began to rise significantly, reaching its peak at 40.65 on December 31, 2024.
This indicates that AbbVie Inc's reliance on debt to finance its operations and growth increased substantially towards the end of the period under review. Such high levels of financial leverage may pose risks to the company, such as higher interest payments, potential liquidity issues, and increased vulnerability to economic downturns. Investors and stakeholders should closely monitor AbbVie Inc's financial leverage ratio to assess its ability to meet its debt obligations and sustain its financial health in the long run.
Peer comparison
Dec 31, 2024