Common-Size Income Statement
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- Common-Size Balance Sheet: Assets
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Abbott Laboratories, common-size consolidated income statement
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 common-size income statement reveals several noteworthy trends over the five-year period. A consistent pattern emerges in the cost structure, while profitability exhibits more volatility. Gross profit as a percentage of net sales generally declined from 2021 to 2023, before recovering in 2024 and 2025. Operating earnings experienced a similar trajectory, with a notable increase in 2024, followed by a slight decrease in 2025. Net earnings demonstrate the most significant fluctuation, peaking in 2024 before returning to a level closer to that of 2021 and 2023.
- Cost of Products Sold & Gross Profit
- The cost of products sold, excluding amortization, consistently increased as a percentage of net sales from -43.03% in 2021 to -44.82% in 2023, indicating increasing production costs or decreasing pricing power. This trend reversed somewhat in 2024 and 2025, falling to -44.59% and -43.58% respectively. Consequently, gross profit declined from 52.21% in 2021 to 50.28% in 2023, before increasing to 50.93% in 2024 and 52.62% in 2025. The recovery in gross profit suggests potential cost management initiatives or improved pricing strategies in the later years.
- Operating Expenses
- Research and development expenses remained relatively stable, fluctuating between -6.62% and -6.83% of net sales. Selling, general, and administrative expenses increased from -26.29% in 2021 to -27.88% in 2024, before decreasing slightly to -27.82% in 2025. The increase in SG&A expenses contributed to the decline in operating earnings observed between 2021 and 2023.
- Interest & Other Income
- Interest expense as a percentage of net sales increased from -1.24% in 2021 to -1.59% in 2023, then decreased to -1.11% in 2025, potentially reflecting changes in debt levels or interest rates. Interest income showed a substantial increase from 0.10% in 2021 to 0.96% in 2023, before decreasing to 0.69% in 2025. Other income, net, also increased over the period, from 0.64% to 1.24%, contributing positively to earnings. Net foreign exchange gains/losses remained minimal until 2025, where it represented 0.11% of net sales.
- Net Earnings & Taxes
- Net earnings experienced significant volatility. While declining from 16.42% in 2021 to 14.27% in 2023, it surged to 31.95% in 2024 before falling back to 14.72% in 2025. This fluctuation is strongly correlated with changes in taxes on earnings. The tax rate as a percentage of net sales was relatively consistent between 2021 and 2023, but decreased significantly in 2024, contributing to the substantial increase in net earnings. In 2025, the tax rate became negative, further impacting net earnings.
Overall, the period demonstrates a dynamic financial performance. While cost management and revenue generation efforts appear to have improved gross profit in the later years, net earnings are heavily influenced by tax considerations and exhibit considerable year-to-year variation.