Return on Equity (ROE)
since 2005
Calculation
Abbott Laboratories, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Total Abbott shareholders’ investment1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 28.12% | = | 100 | × | 13,402) | ÷ | 47,664) |
| Dec 31, 2023 | 14.83% | = | 100 | × | 5,723) | ÷ | 38,603) |
| Dec 31, 2022 | 18.90% | = | 100 | × | 6,933) | ÷ | 36,686) |
| Dec 31, 2021 | 19.75% | = | 100 | × | 7,071) | ÷ | 35,802) |
| Dec 31, 2020 | 13.71% | = | 100 | × | 4,495) | ÷ | 32,784) |
| Dec 31, 2019 | 11.86% | = | 100 | × | 3,687) | ÷ | 31,088) |
| Dec 31, 2018 | 7.76% | = | 100 | × | 2,368) | ÷ | 30,524) |
| Dec 31, 2017 | 1.54% | = | 100 | × | 477) | ÷ | 30,897) |
| Dec 31, 2016 | 6.82% | = | 100 | × | 1,400) | ÷ | 20,538) |
| Dec 31, 2015 | 20.85% | = | 100 | × | 4,423) | ÷ | 21,211) |
| Dec 31, 2014 | 10.61% | = | 100 | × | 2,284) | ÷ | 21,526) |
| Dec 31, 2013 | 10.23% | = | 100 | × | 2,576) | ÷ | 25,171) |
| Dec 31, 2012 | 22.32% | = | 100 | × | 5,963) | ÷ | 26,721) |
| Dec 31, 2011 | 19.35% | = | 100 | × | 4,728) | ÷ | 24,440) |
| Dec 31, 2010 | 20.66% | = | 100 | × | 4,626) | ÷ | 22,388) |
| Dec 31, 2009 | 25.14% | = | 100 | × | 5,746) | ÷ | 22,856) |
| Dec 31, 2008 | 27.92% | = | 100 | × | 4,881) | ÷ | 17,480) |
| Dec 31, 2007 | 20.28% | = | 100 | × | 3,606) | ÷ | 17,779) |
| Dec 31, 2006 | 12.22% | = | 100 | × | 1,717) | ÷ | 14,054) |
| Dec 31, 2005 | 23.39% | = | 100 | × | 3,372) | ÷ | 14,415) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of the annual financial data reveals notable fluctuations and trends concerning the company’s profitability and shareholders’ equity over the period from 2005 to 2024.
- Net Earnings
- Net earnings exhibited considerable variability throughout the years. Initially, earnings declined sharply from 3,372 million USD in 2005 to 1,717 million USD in 2006, but rebounded strongly in subsequent years, peaking at 5,746 million USD in 2009. Following this peak, earnings experienced a period of volatility, marked by a significant dip to as low as 477 million USD in 2017. From 2018 onwards, net earnings recovered steadily, reaching the highest value of 13,402 million USD by 2024, indicating strong profitability growth in recent years.
- Total Abbott Shareholders’ Investment
- Shareholders’ investment showed a general upward trend over the analyzed period. Starting at 14,415 million USD in 2005, it experienced a gradual increase with minor fluctuations, crossing the 20,000 million USD mark in 2013, and surpassing 30,000 million USD by 2017. The investment amount continued to rise steadily thereafter, reaching 47,664 million USD by 2024. This reflects an overall increase in the company’s equity base and possibly retention of earnings or capital injections over time.
- Return on Equity (ROE)
- ROE displayed substantial oscillations, paralleling the pattern of net earnings. The ratio started at a strong 23.39% in 2005, plummeted to 12.22% in 2006, and then climbed again to reach a high of 27.92% in 2008. Afterwards, ROE trends downwards, falling to a low of 1.54% in 2017, which corresponds with the low net earnings during that period. From 2018, ROE gradually recovered, peaking again at 28.12% in 2024. This recovery indicates improved efficiency in generating profit from shareholders’ equity in the latter years.
Overall, the data reflects a cyclical pattern of earnings and profitability with a period of substantial challenge around 2013 to 2017, followed by a marked recovery and growth phase. The steady increase in shareholders’ investment throughout the period supports the company’s expanding asset base and suggests ongoing investor confidence or capital retention contributing to long-term stability and growth potential.
Comparison to Competitors
Abbott Laboratories, ROE, long-term trends, comparison to competitors
| Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 28.12% | 6.11% | 14.47% | 14.13% | 7.32% | 15.55% |
| Dec 31, 2023 | 14.83% | 10.91% | 15.23% | 13.51% | 7.30% | 25.22% |
| Dec 31, 2022 | 18.90% | 5.84% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 19.75% | 10.54% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 13.71% | 10.35% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 11.86% | 10.39% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 7.76% | -1.02% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 1.54% | 17.57% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 6.82% | 14.44% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 20.85% | 14.08% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 10.61% | 12.23% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 10.23% | 12.10% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 22.32% | 10.28% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 19.35% | 9.10% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 20.66% | 9.09% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 25.14% | 10.33% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 27.92% | 9.29% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 20.28% | 8.42% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 12.22% | 13.80% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 23.39% | 14.70% | 9.86% | 21.27% | 17.26% | 18.61% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Abbott Laboratories, ROE, long-term trends, comparison to sector (health care equipment & services)
| Abbott Laboratories | Health Care Equipment & Services | |
|---|---|---|
| Dec 31, 2024 | 28.12% | 13.71% |
| Dec 31, 2023 | 14.83% | 15.59% |
| Dec 31, 2022 | 18.90% | 15.27% |
| Dec 31, 2021 | 19.75% | 15.49% |
| Dec 31, 2020 | 13.71% | 14.35% |
| Dec 31, 2019 | 11.86% | 14.41% |
| Dec 31, 2018 | 7.76% | 9.60% |
| Dec 31, 2017 | 1.54% | 13.23% |
| Dec 31, 2016 | 6.82% | 11.47% |
| Dec 31, 2015 | 20.85% | 12.32% |
| Dec 31, 2014 | 10.61% | 13.38% |
| Dec 31, 2013 | 10.23% | 13.66% |
| Dec 31, 2012 | 22.32% | 15.91% |
| Dec 31, 2011 | 19.35% | 14.75% |
| Dec 31, 2010 | 20.66% | 15.08% |
| Dec 31, 2009 | 25.14% | 16.80% |
| Dec 31, 2008 | 27.92% | 14.94% |
| Dec 31, 2007 | 20.28% | 16.53% |
| Dec 31, 2006 | 12.22% | 16.33% |
| Dec 31, 2005 | 23.39% | 16.05% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Abbott Laboratories, ROE, long-term trends, comparison to industry (health care)
| Abbott Laboratories | Health Care | |
|---|---|---|
| Dec 31, 2024 | 28.12% | 14.75% |
| Dec 31, 2023 | 14.83% | 18.50% |
| Dec 31, 2022 | 18.90% | 22.94% |
| Dec 31, 2021 | 19.75% | 23.78% |
| Dec 31, 2020 | 13.71% | 15.95% |
| Dec 31, 2019 | 11.86% | 21.79% |
| Dec 31, 2018 | 7.76% | 18.65% |
| Dec 31, 2017 | 1.54% | 14.05% |
| Dec 31, 2016 | 6.82% | 18.22% |
| Dec 31, 2015 | 20.85% | 18.18% |
| Dec 31, 2014 | 10.61% | 18.58% |
| Dec 31, 2013 | 10.23% | 18.25% |
| Dec 31, 2012 | 22.32% | 17.51% |
| Dec 31, 2011 | 19.35% | 15.27% |
| Dec 31, 2010 | 20.66% | 14.32% |
| Dec 31, 2009 | 25.14% | 19.27% |
| Dec 31, 2008 | 27.92% | 19.00% |
| Dec 31, 2007 | 20.28% | 16.88% |
| Dec 31, 2006 | 12.22% | 20.24% |
| Dec 31, 2005 | 23.39% | 18.16% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).