AbbVie Inc (ABBV)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	8,464,000	10,222,000	12,674,000	11,250,000	15,698,000	17,016,000	16,342,000	16,382,000	15,405,000	9,675,000	8,517,000	6,682,000	5,846,000	10,359,000	9,715,000	10,940,000	10,210,000	4,584,000	5,203,000	6,370,000
Interest expense (ttm)	US$ in thousands	2,224,000	2,226,000	2,231,000	2,235,000	2,230,000	2,244,000	2,280,000	2,339,000	2,423,000	2,472,000	2,506,000	2,523,000	2,454,000	2,384,000	2,234,000	1,960,000	1,784,000	1,605,000	1,464,000	1,426,000
Interest coverage		3.81	4.59	5.68	5.03	7.04	7.58	7.17	7.00	6.36	3.91	3.40	2.65	2.38	4.35	4.35	5.58	5.72	2.86	3.55	4.47

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,464,000K ÷ $2,224,000K
= 3.81

AbbVie Inc's interest coverage ratio has remained relatively stable over the past eight quarters, ranging from 7.93 to 9.65. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income. A higher ratio indicates that the company is more capable of meeting its interest payments, which is a positive sign for investors and creditors. AbbVie's interest coverage ratio consistently staying above 1 indicates that the company's operating income is sufficient to cover its interest expenses comfortably. This stability and strong interest coverage ratio suggest that AbbVie has a healthy financial position and is able to manage its debt obligations effectively.