Stock Analysis on Net
Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Abbott Laboratories, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.55 0.59 0.57 0.48 0.47
Adjusted 0.55 0.59 0.58 0.48 0.47
Liquidity Ratio
Current Ratio
Reported 1.64 1.63 1.85 1.72 1.44
Adjusted 1.66 1.65 1.87 1.74 1.48
Solvency Ratios
Debt to Equity
Reported 0.38 0.46 0.50 0.57 0.58
Adjusted 0.41 0.48 0.53 0.59 0.59
Debt to Capital
Reported 0.28 0.31 0.34 0.36 0.37
Adjusted 0.29 0.32 0.34 0.37 0.37
Financial Leverage
Reported 1.90 2.03 2.10 2.21 2.18
Adjusted 1.89 1.97 2.03 2.13 2.08
Profitability Ratios
Net Profit Margin
Reported 14.27% 15.88% 16.42% 12.99% 11.56%
Adjusted 13.14% 15.39% 16.65% 11.36% 7.53%
Return on Equity (ROE)
Reported 14.83% 18.90% 19.75% 13.71% 11.86%
Adjusted 13.61% 17.98% 19.59% 11.70% 7.42%
Return on Assets (ROA)
Reported 7.82% 9.31% 9.40% 6.20% 5.43%
Adjusted 7.19% 9.12% 9.65% 5.49% 3.57%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Abbott Laboratories adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Abbott Laboratories adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Abbott Laboratories adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Abbott Laboratories adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Abbott Laboratories adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Abbott Laboratories adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Abbott Laboratories adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Abbott Laboratories adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Abbott Laboratories, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net sales 40,109 43,653 43,075 34,608 31,904
Total assets 73,214 74,438 75,196 72,548 67,887
Activity Ratio
Total asset turnover1 0.55 0.59 0.57 0.48 0.47
Adjusted
Selected Financial Data (US$ in millions)
Net sales 40,109 43,653 43,075 34,608 31,904
Adjusted total assets2 73,301 73,656 74,303 71,673 67,261
Activity Ratio
Adjusted total asset turnover3 0.55 0.59 0.58 0.48 0.47

Based on: 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).

1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 40,109 ÷ 73,214 = 0.55

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 40,109 ÷ 73,301 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Abbott Laboratories adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 22,670 25,224 24,239 20,441 15,667
Current liabilities 13,841 15,489 13,105 11,907 10,863
Liquidity Ratio
Current ratio1 1.64 1.63 1.85 1.72 1.44
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 22,911 25,486 24,552 20,729 16,051
Current liabilities 13,841 15,489 13,105 11,907 10,863
Liquidity Ratio
Adjusted current ratio3 1.66 1.65 1.87 1.74 1.48

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,670 ÷ 13,841 = 1.64

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 22,911 ÷ 13,841 = 1.66

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Abbott Laboratories adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 14,679 16,773 18,050 18,747 18,139
Total Abbott shareholders’ investment 38,603 36,686 35,802 32,784 31,088
Solvency Ratio
Debt to equity1 0.38 0.46 0.50 0.57 0.58
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 15,873 17,946 19,251 19,890 19,099
Adjusted total shareholders’ investment3 38,712 37,370 36,607 33,604 32,346
Solvency Ratio
Adjusted debt to equity4 0.41 0.48 0.53 0.59 0.59

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Total Abbott shareholders’ investment
= 14,679 ÷ 38,603 = 0.38

2 Adjusted total debt. See details »

3 Adjusted total shareholders’ investment. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareholders’ investment
= 15,873 ÷ 38,712 = 0.41

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Abbott Laboratories adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 14,679 16,773 18,050 18,747 18,139
Total capital 53,282 53,459 53,852 51,531 49,227
Solvency Ratio
Debt to capital1 0.28 0.31 0.34 0.36 0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 15,873 17,946 19,251 19,890 19,099
Adjusted total capital3 54,585 55,316 55,858 53,494 51,445
Solvency Ratio
Adjusted debt to capital4 0.29 0.32 0.34 0.37 0.37

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,679 ÷ 53,282 = 0.28

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 15,873 ÷ 54,585 = 0.29

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Abbott Laboratories adjusted debt-to-capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 73,214 74,438 75,196 72,548 67,887
Total Abbott shareholders’ investment 38,603 36,686 35,802 32,784 31,088
Solvency Ratio
Financial leverage1 1.90 2.03 2.10 2.21 2.18
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 73,301 73,656 74,303 71,673 67,261
Adjusted total shareholders’ investment3 38,712 37,370 36,607 33,604 32,346
Solvency Ratio
Adjusted financial leverage4 1.89 1.97 2.03 2.13 2.08

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Total Abbott shareholders’ investment
= 73,214 ÷ 38,603 = 1.90

2 Adjusted total assets. See details »

3 Adjusted total shareholders’ investment. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareholders’ investment
= 73,301 ÷ 38,712 = 1.89

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Abbott Laboratories adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 5,723 6,933 7,071 4,495 3,687
Net sales 40,109 43,653 43,075 34,608 31,904
Profitability Ratio
Net profit margin1 14.27% 15.88% 16.42% 12.99% 11.56%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,270 6,718 7,173 3,933 2,401
Net sales 40,109 43,653 43,075 34,608 31,904
Profitability Ratio
Adjusted net profit margin3 13.14% 15.39% 16.65% 11.36% 7.53%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 5,723 ÷ 40,109 = 14.27%

2 Adjusted net earnings. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 5,270 ÷ 40,109 = 13.14%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Abbott Laboratories adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 5,723 6,933 7,071 4,495 3,687
Total Abbott shareholders’ investment 38,603 36,686 35,802 32,784 31,088
Profitability Ratio
ROE1 14.83% 18.90% 19.75% 13.71% 11.86%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,270 6,718 7,173 3,933 2,401
Adjusted total shareholders’ investment3 38,712 37,370 36,607 33,604 32,346
Profitability Ratio
Adjusted ROE4 13.61% 17.98% 19.59% 11.70% 7.42%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net earnings ÷ Total Abbott shareholders’ investment
= 100 × 5,723 ÷ 38,603 = 14.83%

2 Adjusted net earnings. See details »

3 Adjusted total shareholders’ investment. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total shareholders’ investment
= 100 × 5,270 ÷ 38,712 = 13.61%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Abbott Laboratories adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net earnings 5,723 6,933 7,071 4,495 3,687
Total assets 73,214 74,438 75,196 72,548 67,887
Profitability Ratio
ROA1 7.82% 9.31% 9.40% 6.20% 5.43%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 5,270 6,718 7,173 3,933 2,401
Adjusted total assets3 73,301 73,656 74,303 71,673 67,261
Profitability Ratio
Adjusted ROA4 7.19% 9.12% 9.65% 5.49% 3.57%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 5,723 ÷ 73,214 = 7.82%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 5,270 ÷ 73,301 = 7.19%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Abbott Laboratories adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.