AbbVie Inc (ABBV)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 89,115,000 | 59,441,000 | 57,142,000 | 56,769,000 |
| Total stockholders’ equity | US$ in thousands | 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 | -8,172,000 | -8,226,000 | -8,566,000 | -7,826,000 |
| Financial leverage ratio | 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, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $134,711,000K ÷ $10,360,000K
= 13.00
The financial leverage ratio of Abbvie Inc has exhibited an increasing trend over the recent quarters, indicating a rising level of leverage in the company's capital structure. The ratio stood at 13.00 in Q4 2023, showing a significant increase from the previous quarter's ratio of 11.26 in Q3 2023. This suggests that Abbvie Inc has been relying more on debt financing compared to equity in the most recent quarter.
Looking at the trend over the past year, the financial leverage ratio has generally been on an upward trajectory, starting at 8.80 in Q1 2022 and gradually increasing to 13.00 in Q4 2023. This signifies a persistent buildup of leverage in the company's operations and could potentially imply higher financial risk.
A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure, which can magnify returns on equity but also increase the risk of financial distress, especially during economic downturns or unfavorable business conditions. It is essential for investors and stakeholders to closely monitor Abbvie Inc's leverage levels and assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023