Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Abbott Laboratories, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Domestic	528)	1,309)	859)	39)	291)
Foreign	874)	723)	790)	566)	590)
Current	1,402)	2,032)	1,649)	605)	881)
Domestic	(382)	(610)	(355)	(18)	(305)
Foreign	(79)	(49)	(154)	(90)	(186)
Deferred	(461)	(659)	(509)	(108)	(491)
Taxes on earnings from continuing operations	941)	1,373)	1,140)	497)	390)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Abbott Laboratories current increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Abbott Laboratories deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Taxes on earnings from continuing operations	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Abbott Laboratories taxes on earnings from continuing operations increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Abbott Laboratories, effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Statutory tax rate on earnings from continuing operations	21.00%	21.00%	21.00%	21.00%	21.00%
Impact of foreign operations	-3.60%	-2.50%	-3.90%	-3.30%	-5.00%
Foreign-derived intangible income benefit	-2.20%	-2.00%	-1.10%	-1.00%	-2.00%
Domestic impairment loss	0.00%	0.00%	-0.10%	-2.70%	0.00%
Excess tax benefits related to stock compensation	-0.30%	-0.50%	-1.70%	-1.90%	-2.50%
Research tax credit	-1.10%	-0.90%	-0.60%	-1.00%	-1.20%
Resolution of certain tax positions pertaining to prior years	1.20%	0.20%	-0.70%	-2.80%	0.00%
Intercompany restructurings and integration	-1.40%	0.00%	0.10%	0.50%	0.00%
State taxes, net of federal benefit	0.50%	0.70%	0.40%	0.50%	0.80%
All other, net	0.00%	0.50%	0.50%	0.20%	0.60%
Effective tax rate on earnings from continuing operations, before impact of TCJA and other related items	14.10%	16.50%	13.90%	9.50%	11.70%
Impact of TCJA and other related items	0.00%	0.00%	0.00%	0.50%	-2.10%
Effective tax rate on earnings from continuing operations	14.10%	16.50%	13.90%	10.00%	9.60%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
Effective tax rate on earnings from continuing operations, before impact of TCJA and other related items	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Abbott Laboratories effective tax rate on earnings from continuing operations, before impact of TCJA and other related items increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Abbott Laboratories, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Compensation and employee benefits	89)	230)	618)	1,003)	982)
Trade receivable reserves	221)	227)	206)	196)	190)
Research and development costs	568)	319)	—)	—)	—)
Inventory reserves	198)	187)	169)	146)	110)
Lease liabilities	272)	263)	273)	259)	209)
Deferred intercompany profit	283)	260)	261)	254)	259)
NOLs, reserves not currently deductible, credit carryforwards and other	9,922)	2,402)	2,425)	2,383)	2,227)
Deferred tax assets before valuation allowance	11,553)	3,888)	3,952)	4,241)	3,977)
Valuation allowance	(8,690)	(1,169)	(1,180)	(1,060)	(978)
Deferred tax assets	2,863)	2,719)	2,772)	3,181)	2,999)
Depreciation	(414)	(376)	(330)	(297)	(219)
Right of Use lease assets	(258)	(252)	(264)	(251)	(209)
Other, primarily the excess of book basis over tax basis of intangible assets	(1,777)	(2,038)	(2,364)	(2,876)	(3,107)
Deferred tax liabilities	(2,449)	(2,666)	(2,958)	(3,424)	(3,535)
Net deferred tax assets (liabilities)	414)	53)	(186)	(243)	(536)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
Deferred tax assets before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Abbott Laboratories deferred tax assets before valuation allowance decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Abbott Laboratories deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Abbott Laboratories net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Abbott Laboratories, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	154)	1,044)	1,206)	1,163)	1,010)
	Deferred tax liabilities	568)	991)	1,392)	1,406)	1,546)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Download chart

Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Abbott Laboratories deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Abbott Laboratories deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Abbott Laboratories, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	73,214)	74,438)	75,196)	72,548)	67,887)
Less: Noncurrent deferred tax assets, net	154)	1,044)	1,206)	1,163)	1,010)
Total assets (adjusted)	73,060)	73,394)	73,990)	71,385)	66,877)
Adjustment to Total Liabilities
Total liabilities (as reported)	34,387)	37,533)	39,172)	39,545)	36,586)
Less: Noncurrent deferred tax liabilities, net	568)	991)	1,392)	1,406)	1,546)
Total liabilities (adjusted)	33,819)	36,542)	37,780)	38,139)	35,040)
Adjustment to Total Abbott Shareholders’ Investment
Total Abbott shareholders’ investment (as reported)	38,603)	36,686)	35,802)	32,784)	31,088)
Less: Net deferred tax assets (liabilities)	414)	53)	(186)	(243)	(536)
Total Abbott shareholders’ investment (adjusted)	38,189)	36,633)	35,988)	33,027)	31,624)
Adjustment to Net Earnings
Net earnings (as reported)	5,723)	6,933)	7,071)	4,495)	3,687)
Add: Deferred income tax expense (benefit)	(461)	(659)	(509)	(108)	(491)
Net earnings (adjusted)	5,262)	6,274)	6,562)	4,387)	3,196)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Abbott Laboratories, Financial Data: Reported vs. Adjusted

Download chart

Abbott Laboratories, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	14.27%	15.88%	16.42%	12.99%	11.56%
Adjusted net profit margin	13.12%	14.37%	15.23%	12.68%	10.02%
Total Asset Turnover
Reported total asset turnover	0.55	0.59	0.57	0.48	0.47
Adjusted total asset turnover	0.55	0.59	0.58	0.48	0.48
Financial Leverage
Reported financial leverage	1.90	2.03	2.10	2.21	2.18
Adjusted financial leverage	1.91	2.00	2.06	2.16	2.11
Return on Equity (ROE)
Reported ROE	14.83%	18.90%	19.75%	13.71%	11.86%
Adjusted ROE	13.78%	17.13%	18.23%	13.28%	10.11%
Return on Assets (ROA)
Reported ROA	7.82%	9.31%	9.40%	6.20%	5.43%
Adjusted ROA	7.20%	8.55%	8.87%	6.15%	4.78%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Abbott Laboratories adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abbott Laboratories adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abbott Laboratories adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Abbott Laboratories adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Abbott Laboratories adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Abbott Laboratories, Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	5,723)	6,933)	7,071)	4,495)	3,687)
Net sales	40,109)	43,653)	43,075)	34,608)	31,904)
Profitability Ratio
Net profit margin¹	14.27%	15.88%	16.42%	12.99%	11.56%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	5,262)	6,274)	6,562)	4,387)	3,196)
Net sales	40,109)	43,653)	43,075)	34,608)	31,904)
Profitability Ratio
Adjusted net profit margin²	13.12%	14.37%	15.23%	12.68%	10.02%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 5,723 ÷ 40,109 = 14.27%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 5,262 ÷ 40,109 = 13.12%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Abbott Laboratories adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	40,109)	43,653)	43,075)	34,608)	31,904)
Total assets	73,214)	74,438)	75,196)	72,548)	67,887)
Activity Ratio
Total asset turnover¹	0.55	0.59	0.57	0.48	0.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	40,109)	43,653)	43,075)	34,608)	31,904)
Adjusted total assets	73,060)	73,394)	73,990)	71,385)	66,877)
Activity Ratio
Adjusted total asset turnover²	0.55	0.59	0.58	0.48	0.48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 40,109 ÷ 73,214 = 0.55

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 40,109 ÷ 73,060 = 0.55

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Abbott Laboratories adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	73,214)	74,438)	75,196)	72,548)	67,887)
Total Abbott shareholders’ investment	38,603)	36,686)	35,802)	32,784)	31,088)
Solvency Ratio
Financial leverage¹	1.90	2.03	2.10	2.21	2.18
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	73,060)	73,394)	73,990)	71,385)	66,877)
Adjusted total Abbott shareholders’ investment	38,189)	36,633)	35,988)	33,027)	31,624)
Solvency Ratio
Adjusted financial leverage²	1.91	2.00	2.06	2.16	2.11

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Abbott shareholders’ investment
= 73,214 ÷ 38,603 = 1.90

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Abbott shareholders’ investment
= 73,060 ÷ 38,189 = 1.91

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Abbott Laboratories adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	5,723)	6,933)	7,071)	4,495)	3,687)
Total Abbott shareholders’ investment	38,603)	36,686)	35,802)	32,784)	31,088)
Profitability Ratio
ROE¹	14.83%	18.90%	19.75%	13.71%	11.86%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	5,262)	6,274)	6,562)	4,387)	3,196)
Adjusted total Abbott shareholders’ investment	38,189)	36,633)	35,988)	33,027)	31,624)
Profitability Ratio
Adjusted ROE²	13.78%	17.13%	18.23%	13.28%	10.11%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net earnings ÷ Total Abbott shareholders’ investment
= 100 × 5,723 ÷ 38,603 = 14.83%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total Abbott shareholders’ investment
= 100 × 5,262 ÷ 38,189 = 13.78%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Abbott Laboratories adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	5,723)	6,933)	7,071)	4,495)	3,687)
Total assets	73,214)	74,438)	75,196)	72,548)	67,887)
Profitability Ratio
ROA¹	7.82%	9.31%	9.40%	6.20%	5.43%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	5,262)	6,274)	6,562)	4,387)	3,196)
Adjusted total assets	73,060)	73,394)	73,990)	71,385)	66,877)
Profitability Ratio
Adjusted ROA²	7.20%	8.55%	8.87%	6.15%	4.78%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 5,723 ÷ 73,214 = 7.82%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 5,262 ÷ 73,060 = 7.20%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Abbott Laboratories adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Abbott Laboratories (NYSE:ABT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Abbott Laboratories, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Abbott Laboratories, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)