Stock Analysis on Net
Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Common-Size Balance Sheet: Assets 

Abbott Laboratories, common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Cash and cash equivalents 9.83 9.35 9.42 13.28 13.03
Investments, primarily bank time deposits and U.S. treasury bills 0.48 0.43 0.52 0.39 0.60
Trade receivables, less allowances 9.14 8.51 8.97 8.35 8.63
Inventories 7.48 7.61 8.97 8.29 6.86
Other prepaid expenses and receivables 3.04 3.16 3.08 3.58 3.12
Current assets 29.98% 29.06% 30.96% 33.89% 32.23%
Equity securities 0.69 0.68 0.76 0.75 0.99
Other 0.37 0.41 0.33 0.28 0.09
Long-term investments 1.06% 1.09% 1.09% 1.03% 1.09%
Net property and equipment 13.63 13.09 13.87 12.31 11.91
Intangible assets, net of amortization 6.37 8.16 12.04 14.04 16.94
Goodwill 27.72 28.38 32.34 30.63 30.89
Deferred income taxes and other assets 21.24 20.22 9.69 8.10 6.93
Long-term assets 70.02% 70.94% 69.04% 66.11% 67.77%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The asset composition of the entity demonstrates notable shifts over the five-year period. Current assets, while consistently representing approximately one-third of total assets, experienced initial growth followed by a decline and stabilization. Long-term assets constitute the majority of the asset base, exhibiting a slight overall increase before stabilizing in the later years.

Liquidity and Current Assets
The proportion of current assets to total assets increased from 32.23% in 2021 to a peak of 33.89% in 2022, before decreasing to 29.98% in 2025. Within current assets, cash and cash equivalents decreased from 13.03% to 9.83% over the period, while trade receivables showed an increasing trend, rising from 8.63% to 9.14%. Inventories also increased initially, peaking at 8.97% in both 2022 and 2023, then decreased to 7.48% in 2025. These movements suggest a potential shift in working capital management, with a greater reliance on receivables and a reduction in cash holdings.
Long-Term Investments and Fixed Assets
Long-term investments remained relatively stable, fluctuating between 1.03% and 1.09% of total assets. Net property and equipment increased from 11.91% in 2021 to 13.63% in 2025, indicating continued investment in fixed assets. Equity securities experienced a slight decrease over the period, falling from 0.99% to 0.69%.
Intangible Assets and Goodwill
A significant trend is observed in intangible assets and goodwill. Intangible assets decreased substantially from 16.94% in 2021 to 6.37% in 2025, while goodwill also decreased, though less dramatically, from 30.89% to 27.72%. This suggests potential asset write-downs or amortization of intangible assets, and a possible restructuring of the entity’s long-term asset portfolio.
Deferred Income Taxes and Other Assets
Deferred income taxes and other assets experienced a substantial increase, rising from 6.93% in 2021 to 21.24% in 2025. This significant growth warrants further investigation to understand the underlying factors contributing to this change, such as changes in tax regulations or accounting practices.

Overall, the asset allocation demonstrates a shift away from intangible assets and towards deferred tax assets, alongside a moderate increase in property, plant, and equipment. The fluctuations in current asset components suggest dynamic working capital management practices.

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