Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Abbott Laboratories, consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Trade accounts payable	4,240)	4,195)	4,295)	4,607)	4,408)
Salaries, wages and commissions	1,745)	1,701)	1,597)	1,556)	1,625)
Accrued rebates payable to government agencies	682)	621)	650)	638)	364)
Accrued other rebates	1,257)	1,098)	1,091)	1,087)	1,082)
All other	3,873)	3,424)	3,681)	4,120)	3,735)
Other accrued liabilities	5,812)	5,143)	5,422)	5,845)	5,181)
Dividends payable	1,097)	1,024)	955)	887)	831)
Income taxes payable	569)	594)	492)	343)	306)
Current portion of long-term debt	3,033)	1,500)	1,080)	2,251)	754)
Current liabilities	16,496)	14,157)	13,841)	15,489)	13,105)
Long-term debt, excluding current portion	9,896)	12,625)	13,599)	14,522)	17,296)
Defined benefit pension plans and post-employment medical and dental plans for significant plans	2,125)	1,880)	1,964)	1,784)	2,738)
Net unrecognized tax benefits	1,397)	857)	—)	—)	—)
Deferred income taxes	559)	512)	568)	991)	1,392)
Operating lease liability, non-current	931)	896)	949)	943)	956)
All other	2,538)	2,586)	3,466)	3,804)	3,685)
Post-employment obligations and other long-term liabilities	7,550)	6,731)	6,947)	7,522)	8,771)
Long-term liabilities	17,446)	19,356)	20,546)	22,044)	26,067)
Total liabilities	33,942)	33,513)	34,387)	37,533)	39,172)
Preferred shares, one dollar par value, none issued	—)	—)	—)	—)	—)
Common shares, without par value	25,527)	25,153)	24,869)	24,709)	24,470)
Common shares held in treasury, at cost	(17,177)	(16,844)	(15,981)	(15,229)	(11,822)
Earnings employed in the business	49,781)	47,261)	37,554)	35,257)	31,528)
Accumulated other comprehensive loss	(6,001)	(7,906)	(7,839)	(8,051)	(8,374)
Total Abbott shareholders’ investment	52,130)	47,664)	38,603)	36,686)	35,802)
Noncontrolling interests in subsidiaries	641)	237)	224)	219)	222)
Total shareholders’ investment	52,771)	47,901)	38,827)	36,905)	36,024)
Total liabilities and shareholders’ investment	86,713)	81,414)	73,214)	74,438)	75,196)

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).

An examination of the provided financial information reveals several noteworthy trends in liabilities and stockholders’ equity over the five-year period. Total liabilities generally decreased from 2021 to 2023, then stabilized, with a slight increase in 2025. Stockholders’ equity, conversely, exhibited a consistent upward trend throughout the period, contributing to overall growth in total liabilities and equity.

Current Liabilities: Current liabilities increased significantly from 2021 to 2022, rising from US$13,105 million to US$15,489 million. However, they decreased in 2023 to US$13,841 million before increasing again in 2025 to US$16,496 million. A substantial portion of this fluctuation appears driven by changes in the current portion of long-term debt, which increased dramatically in 2022 before decreasing in subsequent years, and then increasing again in 2025. Trade accounts payable remained relatively stable, fluctuating within a narrow range.
Long-Term Liabilities: Long-term liabilities demonstrated a consistent decline from 2021 to 2025, decreasing from US$26,067 million to US$17,446 million. This decrease was primarily attributable to a reduction in long-term debt, excluding the current portion. Post-employment obligations also contributed to this decline, though to a lesser extent. Net unrecognized tax benefits and deferred income taxes also decreased over the period.
Total Liabilities: Total liabilities peaked in 2021 at US$39,172 million, then decreased through 2023 to US$34,387 million. They then experienced a moderate increase in 2024 and 2025, reaching US$33,942 million. The overall trend suggests a period of liability management followed by a stabilization and slight increase.
Stockholders’ Equity: Total stockholders’ equity exhibited a clear upward trajectory, increasing from US$36,024 million in 2021 to US$52,771 million in 2025. This growth was largely driven by increases in earnings employed in the business and common shares, without par value. The impact of common shares held in treasury was consistently negative, offsetting some of the positive contributions. Accumulated other comprehensive loss decreased over the period, further contributing to the growth in equity. Noncontrolling interests in subsidiaries also increased significantly in 2025.
Debt Composition: The composition of debt shifted over the period. While long-term debt decreased, the current portion of long-term debt experienced significant volatility. This suggests a potential strategy of refinancing or restructuring debt obligations. The overall debt level, however, remained substantial throughout the period.

In summary, the company appears to have focused on managing its overall debt levels while simultaneously increasing stockholders’ equity. The fluctuations in current liabilities warrant further investigation, particularly concerning the current portion of long-term debt. The consistent growth in stockholders’ equity indicates a strengthening financial position.

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Abbott Laboratories (NYSE:ABT)

Balance Sheet: Liabilities and Stockholders’ Equity