Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Abbott Laboratories (NYSE:ABT)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Abbott Laboratories, adjustment to net earnings

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (as reported) 3,687  2,368  477  1,400  4,423 
Add: Unrealized gains (losses) on marketable equity securities, net of taxes —  —  64  (134) 64 
Net earnings (adjusted) 3,687  2,368  541  1,266  4,487 

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Abbott Laboratories, adjusted profitability ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 11.56% 7.74% 1.74% 6.71% 21.68%
Adjusted net profit margin 11.56% 7.74% 1.98% 6.07% 21.99%
Return on Equity (ROE)
Reported ROE 11.86% 7.76% 1.54% 6.82% 20.85%
Adjusted ROE 11.86% 7.76% 1.75% 6.16% 21.15%
Return on Assets (ROA)
Reported ROA 5.43% 3.53% 0.63% 2.66% 10.72%
Adjusted ROA 5.43% 3.53% 0.71% 2.40% 10.88%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Abbott Laboratories’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Abbott Laboratories’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Abbott Laboratories’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Abbott Laboratories, Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 3,687  2,368  477  1,400  4,423 
Net sales 31,904  30,578  27,390  20,853  20,405 
Profitability Ratio
Net profit margin1 11.56% 7.74% 1.74% 6.71% 21.68%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 3,687  2,368  541  1,266  4,487 
Net sales 31,904  30,578  27,390  20,853  20,405 
Profitability Ratio
Adjusted net profit margin2 11.56% 7.74% 1.98% 6.07% 21.99%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 3,687 ÷ 31,904 = 11.56%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 3,687 ÷ 31,904 = 11.56%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Abbott Laboratories’s adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 3,687  2,368  477  1,400  4,423 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Profitability Ratio
ROE1 11.86% 7.76% 1.54% 6.82% 20.85%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 3,687  2,368  541  1,266  4,487 
Total Abbott shareholders’ investment 31,088  30,524  30,897  20,538  21,211 
Profitability Ratio
Adjusted ROE2 11.86% 7.76% 1.75% 6.16% 21.15%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROE = 100 × Net earnings ÷ Total Abbott shareholders’ investment
= 100 × 3,687 ÷ 31,088 = 11.86%

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Total Abbott shareholders’ investment
= 100 × 3,687 ÷ 31,088 = 11.86%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Abbott Laboratories’s adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 3,687  2,368  477  1,400  4,423 
Total assets 67,887  67,173  76,250  52,666  41,247 
Profitability Ratio
ROA1 5.43% 3.53% 0.63% 2.66% 10.72%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 3,687  2,368  541  1,266  4,487 
Total assets 67,887  67,173  76,250  52,666  41,247 
Profitability Ratio
Adjusted ROA2 5.43% 3.53% 0.71% 2.40% 10.88%

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

2019 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 3,687 ÷ 67,887 = 5.43%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 3,687 ÷ 67,887 = 5.43%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Abbott Laboratories’s adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.