Return on Equity (ROE)
since 2005
Calculation
Abbott Laboratories, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Total Abbott shareholders’ investment1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 12.51% | = | 100 | × | 6,524) | ÷ | 52,130) |
| 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: 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), 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 return on equity (ROE) for the period between 2005 and 2025 demonstrates considerable fluctuation. Initial values are strong, followed by periods of decline, recovery, and ultimately, significant volatility. A general observation is that ROE is sensitive to changes in both net earnings and total shareholders’ investment.
- Initial Period (2005-2008)
- ROE began at 23.39% in 2005, decreased substantially to 12.22% in 2006, then recovered to 20.28% in 2007. A notable increase occurred in 2008, reaching 27.92%, suggesting improved profitability relative to shareholder equity during that year.
- Period of Stability and Decline (2009-2011)
- Following 2008, ROE remained relatively high at 25.14% in 2009, but then experienced a gradual decline to 19.35% by 2011. This suggests that while profitability remained positive, it did not keep pace with growth in shareholder equity.
- Moderate Fluctuations (2012-2016)
- The period from 2012 to 2016 exhibited moderate fluctuations. ROE increased to 22.32% in 2012, then decreased significantly to 10.23% in 2013, followed by a slight recovery to 10.61% in 2014. A substantial increase to 20.85% occurred in 2015, but was followed by a sharp decline to 6.82% in 2016. This period highlights the impact of earnings volatility on ROE.
- Significant Volatility and Peak (2017-2023)
- From 2017 through 2023, ROE experienced significant volatility. It dropped to a low of 1.54% in 2017, then increased to 7.76% in 2018, 11.86% in 2019, and 13.71% in 2020. A substantial increase was observed in 2021, reaching 19.75%, followed by 18.90% in 2022. However, ROE decreased to 14.83% in 2023.
- Recent Performance (2024-2025)
- A significant peak in ROE occurred in 2024, reaching 28.12%, representing the highest value in the analyzed period. This was followed by a decrease to 12.51% in 2025. This recent volatility suggests a potential shift in the company’s profitability or capital structure.
Overall, the ROE demonstrates a pattern of cyclicality and sensitivity to changes in net earnings and shareholder investment. The substantial increase in 2024, followed by a decrease in 2025, warrants further investigation to determine the underlying drivers of these changes.
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Comparison to Competitors
Abbott Laboratories, ROE, long-term trends, comparison to competitors
| Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2025 | 12.51% | 12.90% | 16.02% | 9.71% | 12.81% |
| Dec 31, 2024 | 28.12% | 14.47% | 14.13% | 7.32% | 15.55% |
| Dec 31, 2023 | 14.83% | 15.23% | 13.51% | 7.30% | 25.22% |
| Dec 31, 2022 | 18.90% | 16.59% | 11.98% | 9.59% | 25.87% |
| Dec 31, 2021 | 19.75% | 16.93% | 14.32% | 7.01% | 24.09% |
| Dec 31, 2020 | 13.71% | 13.77% | 10.90% | 9.44% | 23.52% |
| Dec 31, 2019 | 11.86% | 15.15% | 16.69% | 9.25% | 24.02% |
| Dec 31, 2018 | 7.76% | 13.14% | 16.89% | 6.12% | 23.19% |
| Dec 31, 2017 | 1.54% | 14.50% | 13.97% | 8.01% | 22.10% |
| Dec 31, 2016 | 6.82% | 9.84% | 12.74% | 6.80% | 18.33% |
| Dec 31, 2015 | 20.85% | 11.11% | 13.63% | 5.03% | 17.18% |
| Dec 31, 2014 | 10.61% | 10.60% | 12.39% | 15.76% | 17.31% |
| Dec 31, 2013 | 10.23% | 10.05% | 19.16% | 18.57% | 17.50% |
| Dec 31, 2012 | 22.32% | 11.16% | 18.34% | 21.14% | 17.72% |
| Dec 31, 2011 | 19.35% | 11.36% | 18.71% | 19.39% | 18.17% |
| Dec 31, 2010 | 20.66% | 12.12% | 18.74% | 21.18% | 17.94% |
| Dec 31, 2009 | 25.14% | 19.09% | 15.13% | 16.88% | 16.19% |
| Dec 31, 2008 | 27.92% | 11.62% | 16.13% | 19.34% | 14.33% |
| Dec 31, 2007 | 20.28% | 14.55% | 16.26% | 25.53% | 23.20% |
| Dec 31, 2006 | 12.22% | 12.59% | 12.22% | 27.14% | 19.99% |
| Dec 31, 2005 | 23.39% | 9.86% | 21.27% | 17.26% | 18.61% |
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), 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, 2025 | 12.51% | 12.41% |
| Dec 31, 2024 | 28.12% | 16.02% |
| Dec 31, 2023 | 14.83% | 17.13% |
| Dec 31, 2022 | 18.90% | 18.40% |
| Dec 31, 2021 | 19.75% | 17.28% |
| Dec 31, 2020 | 13.71% | 15.80% |
| Dec 31, 2019 | 11.86% | 15.85% |
| Dec 31, 2018 | 7.76% | 13.28% |
| Dec 31, 2017 | 1.54% | 12.21% |
| Dec 31, 2016 | 6.82% | 10.70% |
| Dec 31, 2015 | 20.85% | 11.84% |
| Dec 31, 2014 | 10.61% | 13.81% |
| Dec 31, 2013 | 10.23% | 14.22% |
| Dec 31, 2012 | 22.32% | 17.99% |
| Dec 31, 2011 | 19.35% | 17.02% |
| Dec 31, 2010 | 20.66% | 17.62% |
| Dec 31, 2009 | 25.14% | 19.50% |
| Dec 31, 2008 | 27.92% | 17.63% |
| Dec 31, 2007 | 20.28% | 20.02% |
| Dec 31, 2006 | 12.22% | 16.70% |
| Dec 31, 2005 | 23.39% | 16.22% |
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), 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, 2025 | 12.51% | 21.47% |
| Dec 31, 2024 | 28.12% | 15.74% |
| Dec 31, 2023 | 14.83% | 19.40% |
| Dec 31, 2022 | 18.90% | 24.82% |
| Dec 31, 2021 | 19.75% | 25.44% |
| Dec 31, 2020 | 13.71% | 16.70% |
| Dec 31, 2019 | 11.86% | 23.30% |
| Dec 31, 2018 | 7.76% | 21.27% |
| Dec 31, 2017 | 1.54% | 13.77% |
| Dec 31, 2016 | 6.82% | 18.53% |
| Dec 31, 2015 | 20.85% | 18.52% |
| Dec 31, 2014 | 10.61% | 19.17% |
| Dec 31, 2013 | 10.23% | 18.81% |
| Dec 31, 2012 | 22.32% | 18.20% |
| Dec 31, 2011 | 19.35% | 15.90% |
| Dec 31, 2010 | 20.66% | 14.85% |
| Dec 31, 2009 | 25.14% | 20.14% |
| Dec 31, 2008 | 27.92% | 20.29% |
| Dec 31, 2007 | 20.28% | 17.87% |
| Dec 31, 2006 | 12.22% | 20.49% |
| Dec 31, 2005 | 23.39% | 18.28% |
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), 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).