Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

AbbVie Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 135,161 134,711 138,805 146,529 150,565
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 135,161 134,711 138,805 146,529 150,565
Adjustment to Total Debt
Total debt (as reported) 67,144 59,385 63,271 76,684 86,056
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current operating lease liabilities (included in Accounts payable and accrued liabilities) 178 166 166 178 175
Add: Noncurrent operating lease liabilities (included in Other long-term liabilities) 697 735 754 713 832
Total debt (adjusted) 68,019 60,286 64,191 77,575 87,063

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1, 2 Equal to total present value of future operating lease payments.


AbbVie Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

AbbVie Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover1
Reported total asset turnover 0.42 0.40 0.42 0.38 0.30
Adjusted total asset turnover 0.42 0.40 0.42 0.38 0.30
Debt to Equity2
Reported debt to equity 20.19 5.73 3.67 4.98 6.58
Adjusted debt to equity 20.46 5.82 3.72 5.03 6.66
Return on Assets3 (ROA)
Reported ROA 3.17% 3.61% 8.53% 7.88% 3.07%
Adjusted ROA 3.17% 3.61% 8.53% 7.88% 3.07%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AbbVie Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. AbbVie Inc. adjusted debt to equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. AbbVie Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

AbbVie Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net revenues 56,334 54,318 58,054 56,197 45,804
Total assets 135,161 134,711 138,805 146,529 150,565
Activity Ratio
Total asset turnover1 0.42 0.40 0.42 0.38 0.30
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net revenues 56,334 54,318 58,054 56,197 45,804
Adjusted total assets 135,161 134,711 138,805 146,529 150,565
Activity Ratio
Adjusted total asset turnover2 0.42 0.40 0.42 0.38 0.30

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 56,334 ÷ 135,161 = 0.42

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 56,334 ÷ 135,161 = 0.42

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AbbVie Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 67,144 59,385 63,271 76,684 86,056
Stockholders’ equity 3,325 10,360 17,254 15,408 13,076
Solvency Ratio
Debt to equity1 20.19 5.73 3.67 4.98 6.58
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 68,019 60,286 64,191 77,575 87,063
Stockholders’ equity 3,325 10,360 17,254 15,408 13,076
Solvency Ratio
Adjusted debt to equity2 20.46 5.82 3.72 5.03 6.66

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 67,144 ÷ 3,325 = 20.19

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 68,019 ÷ 3,325 = 20.46

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. AbbVie Inc. adjusted debt-to-equity ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,278 4,863 11,836 11,542 4,616
Total assets 135,161 134,711 138,805 146,529 150,565
Profitability Ratio
ROA1 3.17% 3.61% 8.53% 7.88% 3.07%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net earnings attributable to AbbVie Inc. 4,278 4,863 11,836 11,542 4,616
Adjusted total assets 135,161 134,711 138,805 146,529 150,565
Profitability Ratio
Adjusted ROA2 3.17% 3.61% 8.53% 7.88% 3.07%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net earnings attributable to AbbVie Inc. ÷ Total assets
= 100 × 4,278 ÷ 135,161 = 3.17%

2 Adjusted ROA = 100 × Net earnings attributable to AbbVie Inc. ÷ Adjusted total assets
= 100 × 4,278 ÷ 135,161 = 3.17%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. AbbVie Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.