ABBVCAUTIOUS

ABBV Return on Equity (ROE) Analysis

-129.2%

Higher than 0% of Healthcare sector peers

Updated 3033h ago·SEC filings & market data

Key Takeaway

AbbVie’s Return on Equity (ROE) of -129.2% means the company is losing more than its entire shareholders’ equity in net income over the past year, indicating severe financial distress relative to the capital invested.

Sector Performance

0th percentile

ABBV

-129.2%

Sector Median

11.3%

Sector Avg

72.2%

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Deep Analysis

This is far below the healthcare sector median of 11.1%, and the company sits at the 0th percentile among its peers, meaning every other company in the sector has a higher ROE. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no improvement or deterioration in this negative reading. The combination of an extremely negative level and a flat trend implies high investment risk, as AbbVie is persistently destroying shareholder value without any sign of recovery. This performance directly contradicts the overall NEUTRAL verdict, because a -129.2% ROE with stable negative momentum would typically warrant a more cautious stance than neutral.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ABBV?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ABBV's Return on Equity (ROE) compare to its sector?

ABBV's Return on Equity (ROE) of -129.2% compares to a Healthcare sector median of 11.3%, placing it in the 0th percentile.

Who are ABBV's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ABT (12.5%), ALGN (10.1%), TMO (13.5%), TECH (9.0%), VEEV (13.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.