AbbVie
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/2
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Owner earnings | $3.77bn | positive | ✓ |
| Return on equity | — | median 11.7% | — |
| Debt to equity | — | median 0.79x | — |
| Operating margin | 24.6% | median 15.0% | ✓ |
Passes 2 of 2. To be clear: Warren Buffett has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 3/3
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Return on capital employed | 24.6% | median 10.1% | ✓ |
| Cash conversion | 4.50x | median 1.78x | ✓ |
| Operating margin | 24.6% | median 15.0% | ✓ |
| Debt to equity | — | median 0.79x | — |
Passes 3 of 3. To be clear: Terry Smith has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 2/2
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Return on capital employed | 24.6% | median 10.1% | ✓ |
| Return on equity | — | median 11.7% | — |
| Operating margin | 24.6% | median 15.0% | ✓ |
Passes 2 of 2. To be clear: Charlie Munger has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/1
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Return on equity | — | median 11.7% | — |
| Debt to equity | — | median 0.79x | — |
| Cash conversion | 4.50x | median 1.78x | ✓ |
Passes 1 of 1. To be clear: Chuck Akre has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 2/4
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Operating margin | 24.6% | median 15.0% | ✓ |
| Net margin | 6.9% | median 10.2% | ✗ |
| Return on capital employed | 24.6% | median 10.1% | ✓ |
| Operating margin, held or improving | 24.6% | 10-yr median 24.8% | ✗ |
Passes 2 of 4. To be clear: Philip Fisher has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 0/1
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Current ratio | 0.67x | median 1.25x | ✗ |
| Debt to equity | — | median 0.79x | — |
Passes 0 of 1. To be clear: Walter Schloss has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/2
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Current ratio | 0.67x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 2. To be clear: Benjamin Graham has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Return on capital employed | 24.6% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 0/1
| Measure | ABBV | Checked against | |
|---|---|---|---|
| Debt to equity | — | median 0.79x | — |
| Net margin | 6.9% | median 10.2% | ✗ |
Passes 0 of 1. To be clear: Peter Lynch has never said anything about AbbVie. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 281.8% | whyThe figure most screeners publish. |
| Operating cash flow | 61.3% | whyBefore capital spending. |
| Free cash flow | 65.4% | whyAfter maintaining the business. |
Spread between highest and lowest: 220.5 percentage points. Same filings, different denominators.
Coverage rating 28 / 100 — Strained. ? Peer standing 9/50Direction 4/30Stability 15/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 65.4% |
| 2024-12-31 | 61.8% |
| 2023-12-31 | 47.8% |
| 2022-12-31 | 41.4% |
| 2021-12-31 | 42.1% |
| 2020-12-31 | 46.0% |
Coverage has deteriorated three years running, 41.4% to 65.4%. Still covered, but moving the wrong way.
18% of the 38 health care here pay out more — at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $6.65 ÷ diluted EPS $2.36
- Operating cash flow — dividends paid $11,657m ÷ operating cash flow $19,030m
- Free cash flow — dividends paid $11,657m ÷ (operating cash flow $19,030m − capex $1,214m)
Where the figures came from
- 10-K filed 2026-02-20 · accession 0001551152-26-000008
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: uncovered on earnings, covered on the basis that applies · rated strained · when it files.
When this changes
Every figure above is recomputed whenever AbbVie files. The monthly letter carries what filed, what moved, and one finding computed across every company here.