Question: Ratios for 2015, 2016, & 2017 2017 2016 2015 Current Ratio 1.27 1.65 1.49 Debt / Equity Ratio 7.25 7.86 7.92 Free Cash Flow $9,431,000

Ratios for 2015, 2016, & 2017
2017 2016 2015
Current Ratio 1.27 1.65 1.49
Debt / Equity Ratio 7.25 7.86 7.92
Free Cash Flow $9,431,000 $6,562,000 $6,571,000
Earnings per Share $ 3.31 $ 3.71 $ 3.17
Price / earnings ratio 19.90 15.17 18.64
Return on Equity 1.03% 1.27% 1.29%
Net profit margin 0.18% 0.23% 0.22%
Return on assets 0.07 0.08 0.09

Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why?

I need help with the above question

AbbVie Inc (NYS: ABBV)
Exchange rate used is that of the Year End reported date
As Reported Annual Cash Flow
Report Date 12/31/2017 12/31/2016 12/31/2015
Currency USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes
Scale Thousands Thousands Thousands
Net earnings 5309000 5953000 5144000
Depreciation 425000 425000 417000
Amortization of intangible assets 1076000 764000 419000
Change in fair value of contingent consideration 626000 228000 -
Stock based compensation 365000 353000 282000
Upfront costs & milestones related to collaborations 470000 280000 280000
Devaluation loss related to Venezuela - 298000 -
Intangible asset impairment 354000 - -
Impact related to U.S. tax reform 1242000 - -
Other adjustments to reconcile earnings to net cash from operating activities 84000 429000 489000
Accounts & other receivables -391000 -71000 -1076000
Inventories 93000 -38000 -434000
Prepaid expenses & other assets -118000 -393000 511000
Accounts payable & other liabilities 425000 -1187000 1503000
Net cash flows from operating activities 9960000 7041000 7535000
Acquisition of Pharmacyclics, Inc., net of cash acquired - -2495000 -11488000
Other acquisitions & investments -308000 -262000 -964000
Acquisitions of property & equipment -529000 -479000 -532000
Purchases of investment securities -2230000 -5315000 -851000
Sales & maturities of investment securities 2793000 2359000 880000
Other investing activities - 118000 19000
Net cash flows from investing activities -274000 -6074000 -12936000
Net change in short-term borrowings 22000 -29000 -19000
Proceeds from issuance of long-term debt - 11627000 20660000
Repayments of long-term debt & lease obligations -25000 -6010000 -4018000
Debt issuance cost - -69000 -182000
Dividends paid -4107000 -3717000 -3294000
Purchases of treasury stock -1410000 -6033000 -7567000
Proceeds from the exercise of stock options 254000 268000 142000
Payments of contingent consideration liabilities -268000 - -
Other financing activities 22000 35000 30000
Net cash flows from financing activities -5512000 -3928000 5752000
Effect of exchange rate changes on cash & equivalents 29000 -338000 -300000
Net increase (decrease) in cash & cash equivalents 4203000 -3299000 51000
Cash & cash equivalents, beginning of year 5100000 8399000 8348000
Cash & cash equivalents, end of year 9303000 5100000 8399000
Interest paid, net of portion capitalized 1099000 986000 536000
Income taxes paid 1696000 3563000 1108000
As Reported Annual Income Statement
Report Date 12/31/2017 12/31/2016 12/31/2015
Currency USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes
Scale Thousands Thousands Thousands
Net revenues 28216000 25638000 22859000
Cost of products sold 7040000 5833000 4500000
Selling, general & administrative expense 6275000 5855000 6387000
Research & development expense 4982000 4366000 4285000
Acquired in-process research & development expense 327000 200000 150000
Total operating costs & expenses 18624000 16254000 15322000
Operating earnings 9592000 9384000 7537000
Interest expense 1150000 1047000 719000
Interest & dividend income 146000 82000 33000
Interest income (expense), net -1004000 -965000 -686000
Net foreign exchange gain (loss) -348000 -303000 -193000
Other income (expense), net -513000 -232000 -13000
Earnings before income tax - domestic -2678000 -1651000 -1038000
Earnings before income tax - foreign 10405000 9535000 7683000
Earnings before income tax expense 7727000 7884000 6645000
Current domestic income tax expense 6204000 2229000 1036000
Current foreign income tax expense 376000 498000 313000
Current income tax expense 6580000 2727000 1349000
Deferred domestic income tax expense (benefit) -4898000 -792000 141000
Deferred foreign income tax expense (benefit) 736000 -4000 11000
Deferred income tax expense (benefit) -4162000 -796000 152000
Income tax expense 2418000 1931000 1501000
Net earnings 5309000 5953000 5144000
Earnings allocated to participating securities 26000 30000 26000
Net income available to common shareholders 5283000 5923000 5118000
Weighted average shares outstanding - basic 1596000 1622000 1625000
Weighted average shares outstanding - diluted 1603000 1631000 1637000
Year end shares outstanding 1592131.025 1592512.72 1609892.94
Earnings per share - basic 3.31 3.65 3.15
Earnings per share - diluted 3.3 3.63 3.13
Cash dividends declared per common share 2.63 2.35 2.1
Total number of employees 29000 30000 28000
Number of common stockholders 50095 52270 53653
Foreign currency translation adjustments - -165000 -667000
As Reported Annual Balance Sheet
Report Date 12/31/2017 12/31/2016 12/31/2015
Currency USD USD USD
Audit Status Not Qualified Not Qualified Not Qualified
Consolidated Yes Yes Yes
Scale Thousands Thousands Thousands
Cash & cash equivalents 9303000 5100000 8399000
Short-term investments 486000 1323000 8000
Accounts receivable, gross 5146000 4830000 4808000
Less: allowance - accounts receivable 58000 72000 78000
Accounts receivables, net 5088000 4758000 4730000
Finished goods 610000 223000 469000
Work in process 822000 1080000 1081000
Materials 173000 141000 169000
Inventories 1605000 1444000 1719000
Prepaid expenses & other current assets 4741000 3562000 1458000
Total current assets 21223000 16187000 16314000
Investments 2090000 1783000 145000
Land 48000 46000 46000
Buildings 1428000 1344000 1284000
Equipment 5991000 5726000 5656000
Construction in progress 604000 410000 348000
Property & equipment, gross 8071000 7526000 7334000
Less: accumulated depreciation 5268000 4922000 4769000
Property & equipment, net 2803000 2604000 2565000
Intangible assets, net of amortization 27559000 28897000 19709000
Goodwill 15785000 15416000 13168000
Other assets 1326000 1212000 1149000
Total assets 70786000 66099000 53050000
Short-term borrowings 400000 377000 406000
Current maturities of long-term debt & lease obligations 6015000 25000 2025000
Sales rebates 3069000 2887000 2355000
Accounts payable 1474000 1407000 1597000
Dividends payable 1143000 1028000 924000
Salaries, wages & commissions 763000 644000 632000
Royalty & license arrangements 514000 434000 411000
Other accounts payable & accrued liabilities 3263000 2979000 2544000
Accounts payable & accrued liabilities 10226000 9379000 8463000
Total current liabilities 16641000 9781000 10894000
Notes 35502000 34964000 27400000
Term loan facilities 2000000 2000000 4000000
Other long-term debt & lease obligations 110000 113000 139000
Fair value hedges & unamortized bond discounts - -338000 -72000
Fair value hedges -401000 - -
Unamortized bond discounts -97000 -110000 -85000
Unamortized deferred financing costs -146000 -164000 -117000
Total long-term debt & lease obligations 36968000 36465000 31265000
Current portion 6015000 25000 2025000
Long-term debt & lease obligations 30953000 36440000 29240000
Deferred income taxes 2490000 6890000 5276000
Other long-term liabilities - 3941000 -
Contingent consideration liabilities 4266000 - -
Pension & other post-employment benefits 2740000 2085000 1949000
Liabilities for unrecognized tax benefits 2683000 1166000 902000
Income taxes payable 4675000 - -
Other long-term liabilities 1241000 1160000 844000
Other long-term liabilities 15605000 8352000 3695000
Common stock 18000 18000 17000
Common stock held in treasury 11923000 10852000 8839000
Additional paid-in capital 14270000 13678000 13080000
Retained earnings 5459000 4378000 2248000
Foreign currency translation adjustments -439000 -1435000 -1270000
Net investment hedging -203000 140000 -
Pension & other post-employment benefits -1919000 -1513000 -1378000
Unrealized gains on marketable equity securities - 46000 47000
Hedging activities -166000 176000 40000
Accumulated other comprehensive income (loss) -2727000 -2586000 -2561000
Total stockholders' equity 5097000 4636000 3945000

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