The business behind the dividend
| Measure | ABBV | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 24.6% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $3.77bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $17.82bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 24.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 6.9% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 5.21x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.67x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 4.50x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Debt to equity, Long-term debt to working capital, Return on equity — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | — | 128.7% | 46.9% | 68.6% | 74.9% | 35.3% | — | — | 104.2% | 128.4% | 74.9% |
| Return on capital employed | 24.6% | 13.0% | 18.3% | 22.5% | 19.6% | 11.6% | 22.0% | 24.0% | 26.5% | 22.7% | 22.0% |
| Operating margin | 24.6% | 16.2% | 23.5% | 31.2% | 31.9% | 24.8% | 39.0% | 19.5% | 33.8% | 36.4% | 24.8% |
| Net margin | 6.9% | 7.6% | 9.0% | 20.4% | 20.5% | 10.1% | 23.7% | 17.4% | 18.8% | 23.2% | 17.4% |
| Debt to equity | — | 20.10x | 5.72x | 3.66x | 4.93x | 6.50x | — | — | 6.07x | 7.86x | 6.07x |
| Current ratio | 0.67x | 0.66x | 0.87x | 0.96x | 0.79x | 0.84x | 3.18x | 0.98x | 1.28x | 1.65x | 0.87x |
| Cash conversion | 4.50x | 4.40x | 4.70x | 2.11x | 1.97x | 3.81x | 1.69x | 2.36x | 1.88x | 1.18x | 2.11x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, AbbVie pays out less than 7 of them. The median for that group is 39.3%, against this company’s 65.4%.
Closest on free cash flow
- Johnson & Johnson (JNJ) 62.9%
- Amgen (AMGN) 63.3%
- Merck (MRK) 66.1%
- Medtronic (MDT) 67.1%
Same sector and same denominator, so the figures are comparable. All 44 in health care →