Cash conversion efficiency is high, evidenced by a 2026Q1 OCF/NI ratio of 5.48, which highlights the company's ability to generate significant liquidity despite heavy non-cash amortization charges.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 21.22B | 19.03B | 18.81B | 22.84B | 24.94B | 22.78B | 17.59B | 13.32B | 13.43B | 9.96B | 7.04B | 7.54B | 3.55B | 6.27B | 6.34B | 6.25B | 4.98B |
| Operating CF Margin % | - | 31.12% | 33.38% | 42.05% | 42.97% | 40.53% | 38.4% | 40.05% | 40.99% | 35.3% | 27.46% | 32.96% | 17.78% | 33.35% | 34.52% | 35.81% | 31.82% |
| Operating CF Growth % | 264.08% | 1.19% | -17.66% | -8.44% | 9.51% | 29.5% | 32% | -0.77% | 34.81% | 41.46% | -6.56% | 112.31% | -43.37% | -1.23% | 1.57% | 25.54% | - |
| Net Income | 3.64B | 4.23B | 4.29B | 4.82B | 11.85B | 11.55B | 4.62B | 7.88B | 5.69B | 5.31B | 5.95B | 5.14B | 1.77B | 4.13B | 5.28B | 3.43B | 4.18B |
| Depreciation & Amortization | 8.04B | 8.14B | 8.39B | 8.7B | 8.47B | 8.52B | 6.47B | 2.02B | 1.76B | 1.5B | 1.19B | 836M | 786M | 897M | 1.15B | 1.27B | 1.18B |
| Stock-Based Compensation | 989M | 955M | 911M | 747M | 671M | 692M | 753M | 430M | 421M | 365M | 353M | 282M | 241M | 212M | 187M | 162.98M | 167M |
| Deferred Taxes | -327M | -492M | -1.45B | -2.89B | -1.93B | -898M | -2.33B | 700M | 424M | 1.24B | 298M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 8.71B | 8.6B | 9.45B | 8.65B | 6.15B | 4.24B | 7.96B | 3.62B | 6.26B | 1.53B | 937M | 769M | 1.54B | 372M | 354M | 672.5M | 313M |
| Working Capital Changes | 185M | -2.36B | -2.78B | 2.81B | -258M | -1.32B | 106M | -1.33B | -1.13B | 9M | -1.69B | 504M | -788M | 658M | -621M | 706.16M | -866M |
| Change in Receivables | 76M | -1.49B | 207M | 66M | -1.46B | -1.32B | -929M | -74M | -591M | -391M | -71M | -5.99B | -5.08B | -9.83B | 223M | -497.74M | -60M |
| Change in Inventory | -263M | -234M | -319M | -417M | -686M | -142M | -40M | -231M | -226M | 93M | -38M | -434M | -203M | -56M | -203M | -87.6M | -73M |
| Change in Payables | 53M | 951M | 177M | 3.84B | 1.6B | 1.63B | 1.51B | -1.12B | 190M | 425M | -1.19B | 1.5B | -193M | -426M | -731M | 1.5B | -695M |
| Cash from Investing | -6.48B | -6.64B | -20.82B | -2.01B | -623M | -2.34B | -37.56B | 596M | -1.01B | -274M | -6.07B | -12.94B | -926M | 879M | -2.42B | 553.9M | -5.03B |
| Capital Expenditures | -359M | -1.21B | -974M | -777M | -695M | -787M | -798M | -552M | -638M | -529M | -479M | -532M | -612M | -491M | -333M | -355.51M | -448M |
| CapEx % of Revenue | 0.57% | 1.98% | 1.73% | 1.43% | 1.2% | 1.4% | 1.74% | 1.66% | 1.95% | 1.87% | 1.87% | 2.33% | 3.07% | 2.61% | 1.81% | 2.04% | 2.86% |
| Acquisitions | -827M | -204M | -17.49B | -1.22B | -794M | -1.9B | -39.61B | -1.14B | -736M | -308M | -2.76B | -12.45B | -622M | -405M | -688M | -272.5M | -2.62B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.05B | -5.27B | -2.83B | 13M | 774M | 366M | 1.39B | 167M | 0 | 0 | 118M | 19M | 308M | 1.77B | -2.08B | 1.87B | -1.87B |
| Cash from Financing | -10.55B | -12.72B | -5.21B | -17.22B | -24.8B | -19.04B | -11.5B | 18.71B | -14.4B | -5.51B | -3.93B | 5.75B | -3.29B | -3.44B | 1.93B | -6.78B | 65M |
| Debt Issued (Net) | 2.63B | -327M | 7.35B | -4.15B | -12.43B | -8.41B | -2.68B | 26.25B | 3.23B | -2M | 5.59B | 16.62B | -5M | -601M | 15.59B | -21.09M | 0 |
| Equity Issued (Net) | -2.43B | -808M | -1.71B | -1.97B | -1.49B | -934M | -978M | -629M | -12.01B | -1.41B | -6.03B | -7.59B | -665M | -320M | 0 | 0 | 0 |
| Dividends Paid | -11.82B | -11.66B | -11.03B | -10.54B | -10.04B | -9.26B | -7.72B | -6.37B | -5.58B | -4.11B | -3.72B | -3.29B | -2.66B | -2.56B | 0 | 0 | 0 |
| Share Repurchases | -1.5B | -980M | -1.71B | -1.97B | -1.49B | -934M | -978M | -629M | -12.01B | -1.41B | -6.03B | -7.59B | -665M | -320M | 0 | 0 | 0 |
| Other Financing | 1.07B | 68M | 172M | -562M | -840M | -430M | -124M | -544M | -31M | 30M | 228M | 9M | 38M | 34M | -13.65B | -6.76B | 65M |
| Net Change in Cash | 4.22B | -295M | -7.29B | 3.61B | -545M | 1.3B | -31.48B | 32.63B | -2.01B | 4.2B | -3.3B | 51M | -1.25B | 3.69B | 5.87B | 17.84M | 65M |
| Free Cash Flow | 20.86B | 17.82B | 17.83B | 22.06B | 24.25B | 21.99B | 16.79B | 12.77B | 12.79B | 9.43B | 6.56B | 7B | 2.94B | 5.78B | 6.01B | 5.89B | 4.53B |
| FCF Margin % | 33.21% | 29.13% | 31.65% | 40.62% | 41.77% | 39.13% | 36.66% | 38.39% | 39.05% | 33.42% | 25.59% | 30.64% | 14.71% | 30.74% | 32.71% | 33.77% | 28.96% |
| FCF Growth % | 35.62% | -0.09% | -19.17% | -9.02% | 10.27% | 30.97% | 31.46% | -0.13% | 35.61% | 43.72% | -6.3% | 138.44% | -49.15% | -3.93% | 2.05% | 30.11% | - |
| FCF per Share | 11.76 | 10.04 | 10.06 | 12.44 | 13.64 | 12.37 | 10.04 | 8.61 | 8.27 | 5.88 | 4.02 | 4.28 | 1.82 | 3.60 | 3.81 | 3.63 | 2.79 |
| FCF Conversion (FCF/Net Income) | 5.73x | 4.50x | 4.40x | 4.70x | 2.11x | 1.97x | 3.81x | 1.69x | 2.36x | 1.88x | 1.18x | 1.46x | 2.00x | 1.52x | 1.20x | 1.82x | 1.19x |
| Interest Paid | 0 | 0 | 2.81B | 2.47B | 2.55B | 2.71B | 2.62B | 1.79B | 1.22B | 1.1B | 986M | 536M | 419M | 283M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 4.06B | 4.7B | 2.99B | 3.65B | 1.67B | 1.45B | -35M | 1.7B | 3.56B | 1.11B | 498M | 1.3B | 0 | 0 | 0 |
M&A Integration and IRA
As reported in recent financial statements, AbbVie's operating cash flow consistently dwarfs net income, with the 2026Q1 OCF/NI ratio reaching 5.48, highlighting that GAAP earnings are heavily suppressed by non-cash amortization charges stemming from the company's aggressive acquisition-led growth strategy.
The persistent gap between net income and operating cash flow suggests that investors should prioritize cash-based metrics to gauge the firm's true dividend-paying capacity. This divergence appears structural rather than operational, reflecting the accounting treatment of intangible assets acquired through major transactions like the Allergan deal.
Based on AbbVie's reported figures, free cash flow margins have remained resilient, peaking at 47.7% in 2025Q3, which indicates that the core business generates substantial liquidity despite the ongoing transition away from legacy Humira revenue and the associated costs of integrating new therapeutic assets.
The ability to maintain high FCF margins suggests that the company's newer immunology assets are successfully scaling without requiring prohibitive levels of incremental capital. This trajectory supports the firm's commitment to dividend growth, provided that future clinical trial outcomes do not necessitate a pivot toward more capital-intensive R&D.
According to recent SEC filings, AbbVie maintains a low capital intensity, with CapEx/Revenue ratios consistently hovering around 1.6% to 2.0%, demonstrating that the firm's primary growth engine is driven by intellectual property acquisition rather than heavy investment in physical manufacturing infrastructure.
This low capital intensity is a hallmark of the pharmaceutical model, allowing the company to direct excess cash toward M&A and shareholder returns. Investors should monitor whether future expansion into new therapeutic areas requires a shift toward higher maintenance CapEx to support specialized production requirements.
As indicated by quarterly data, AbbVie experiences significant swings in working capital, including a $1.9 billion outflow in 2026Q1, which suggests that timing differences in rebate payments and inventory management can create meaningful, albeit temporary, fluctuations in the company's quarterly operating cash flow profile.
These working capital swings appear to be a function of the complex rebate structures inherent in the U.S. immunology market. Analysts should look past these quarterly variances to identify the underlying cash conversion efficiency, as these outflows do not necessarily reflect a deterioration in operational health.
Based on the provided cash flow data, AbbVie consistently utilizes its strong cash generation to fund both significant M&A activity, such as the $9.4 billion net acquisition spend in 2024Q1, and a steady stream of shareholder dividends, reflecting a balanced approach to growth and return.
The firm's reliance on large-scale acquisitions to fill revenue gaps warrants careful investigation into the return on invested capital for these deals. While the dividend remains a priority, the high volume of cash deployed for acquisitions suggests that management is prioritizing long-term portfolio diversification over rapid debt reduction.
Quick answers to the most common questions about buying ABBV stock.
AbbVie Inc. (ABBV) generated $19.03B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AbbVie Inc. (ABBV) generated $17.82B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
AbbVie Inc. (ABBV) spent $1.21B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, AbbVie Inc. (ABBV) returned $11.66B to shareholders via cash dividends and spent $980.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.