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.
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
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Abbott Laboratories, consolidated balance sheet: liabilities and stockholders’ equity
US$ in millions
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals a range of trends in liabilities, equity, and overall company position over the five-year period.
- Current Liabilities
- Current liabilities increased from $11.9 billion in 2020 to a peak of $15.5 billion in 2022, followed by a slight decline to approximately $14.2 billion in 2024. Notable components driving fluctuations include trade accounts payable, which rose from $3.9 billion in 2020 to $4.6 billion in 2022 before decreasing gradually to $4.2 billion in 2024. Salaries, wages, and commissions increased steadily from $1.4 billion in 2020 to $1.7 billion in 2024, showing consistent growth in personnel costs. Accrued rebates payable to government agencies nearly doubled between 2020 ($316 million) and 2022 ($638 million), stabilizing near $620 million thereafter. Dividends payable exhibited a continuous upward trajectory, increasing from $798 million in 2020 to over $1 billion in 2024, indicating higher shareholder distributions over time. Income taxes payable fluctuated moderately, increasing to $594 million by 2024 from $362 million in 2020. The current portion of long-term debt showed considerable volatility, surging to $2.25 billion in 2022 before settling at $1.5 billion in 2024.
- Long-term Liabilities
- Long-term debt, excluding current portion, has consistently decreased from $18.5 billion in 2020 to $12.6 billion in 2024, indicating a reduction in long-term borrowings. Post-employment obligations and other long-term liabilities also declined steadily from $9.1 billion to $6.7 billion across the period, reflecting possible improvements in pension-related funding or liabilities management. Deferred income taxes showed a significant drop from $1.4 billion in 2020 to roughly $512 million by 2024. Operating lease liabilities and other long-term liabilities exhibited relatively marginal fluctuations. Overall, long-term liabilities declined substantially from $27.6 billion in 2020 to $19.4 billion in 2024.
- Total Liabilities
- Total liabilities decreased from $39.5 billion in 2020 to $33.5 billion in 2024. This decline is largely due to reductions in long-term liabilities and somewhat stabilized current liabilities after 2022.
- Shareholders’ Investment
- Shareholders’ investment increased from $33.0 billion in 2020 to $47.9 billion in 2024. Common shares experienced modest growth over the period, from $24.1 billion to $25.2 billion. Treasury shares held at cost increased significantly in negative value, moving from approximately -$10 billion in 2020 to nearly -$17 billion in 2024, indicating increased share buyback activity. Earnings employed in the business grew notably from $27.6 billion in 2020 to $47.3 billion in 2024, a sign of enhanced retained earnings or reinvested profits. Accumulated other comprehensive loss slightly improved, moving from approximately -$8.9 billion to about -$7.9 billion, suggesting a reduction in comprehensive losses over time. Overall, the total shareholders’ equity showed consistent strengthening, reflecting improved financial health and capital base stability.
- Total Liabilities and Shareholders’ Investment
- The overall total of liabilities and shareholders’ investment decreased slightly from $72.5 billion in 2020 to $73.2 billion in 2023 before rising sharply to $81.4 billion in 2024. This jump in 2024 is primarily driven by the significant increase in shareholder equity components, particularly earnings and treasury shares adjustments, alongside a less pronounced decline in liabilities.
In summary, the financial data indicates tension between rising current liabilities in the early years and progressive deleveraging of long-term debt. Shareholder equity has grown strongly, supported by earnings retention and buyback activity, enhancing the company's capital position. The overall balance sheet expanded notably in the final year, driven by equity growth, signaling a strengthening financial stance despite fluctuations in liabilities during the period analyzed.