GURUFOCUS.COM » STOCK LIST » USA » NYSE » AbbVie Inc (NYSE:ABBV) » Definitions » Financial Strength
Switch to:

AbbVie Financial Strength

: 4 (As of Jun. 2022)
View and export this data going back to 2012. Start your Free Trial

AbbVie has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

AbbVie's Interest Coverage for the quarter that ended in Jun. 2022 was 6.41. AbbVie's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.25. As of today, AbbVie's Altman Z-Score is 1.93.


Competitive Comparison

For the Drug Manufacturers - General subindustry, AbbVie's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

AbbVie Financial Strength Distribution

For the Drug Manufacturers industry and Healthcare sector, AbbVie's Financial Strength distribution charts can be found below:

* The bar in red indicates where AbbVie's Financial Strength falls into.



AbbVie Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

AbbVie's Interest Expense for the months ended in Jun. 2022 was $-556 Mil. Its Operating Income for the months ended in Jun. 2022 was $3,564 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $61,002 Mil.

AbbVie's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*3564/-556
=6.41

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

AbbVie's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11930 + 61002) / 58332
=1.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

AbbVie has a Z-score of 1.93, indicating it is in Grey Zones. This implies that AbbVie is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.93 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AbbVie  (NYSE:ABBV) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

AbbVie has the Financial Strength Rank of 4.


AbbVie Financial Strength Related Terms

Thank you for viewing the detailed overview of AbbVie's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


AbbVie Business Description

AbbVie logo
Address
1 North Waukegan Road, North Chicago, IL, USA, 60064-6400
AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The company's top drug, Humira, represents close to half of the company's current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women's health.
Executives
Sorg Elaine K. officer: Sr. V.P., U.S. Commercial Ops. 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Strom Carrie C officer: SVP & Pres Global Allerg Aesth 1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064
Rapp Edward J director 100 NE ADAMS STREET PEORIA IL 61629
Liddy Edward M director 2775 SANDERS ROAD NORTHBROOK IL 60062-6127
Alpern Robert J director YALE SCHOOL OF MEDICINE 333 CEDAR STREET, C203 SHM NEW HAVEN CT 06520
Richmond Timothy J. officer: EVP, Chief HR Officer 1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064
Hudson Thomas J officer: SVP, R&D and CSO 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Donoghoe Nicholas officer: SVP, Enterprise Innovation 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Stewart Jeffrey Ryan officer: SVP, US Commercial Operations 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Durkin Brian L officer: VP, Controller 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Roberts Rebecca B director 1000 LOUISIANA SUITE 5800 HOUSTON TX 77002
Meyer Melody B director 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Michael Robert A. officer: VP, Controller 1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064
Hart Brett J director 233 S. WACKER DRIVE, 11TH FLOOR CHICAGO IL 60606
Gosebruch Henry O officer: Chief Strategy Officer 1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064-6092

AbbVie Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)