Analysis of Geographic Areas
Abbott Laboratories operates in 2 regions: United States and Other countries.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Debt to Equity since 2005
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Area Asset Turnover
Abbott Laboratories, asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries |
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).
- United States Asset Turnover
- The asset turnover ratio in the United States shows a rising trend from 2.13 in 2020 to a peak of 2.45 in 2021. After reaching this high point, there is a clear declining trend through the subsequent years, dropping to 2.36 in 2022 and then falling more sharply to 1.74 in 2023 and further to 1.58 in 2024. This pattern indicates a deterioration in the efficiency of asset utilization in the United States starting from 2021.
- Other Countries Asset Turnover
- The asset turnover ratio for other countries also reveals a similar pattern. The ratio increased from 3.85 in 2020 to 4.20 in 2021, marking the highest efficiency in the observed period. However, the ratio then declines over the next three years to 3.92 in 2022, 3.38 in 2023, and 3.13 in 2024, indicating a gradual decrease in asset turnover efficiency outside the United States.
- Comparative Insights Across Regions
- Across both geographic segments, the year 2021 represents the peak of asset turnover efficiency. Both regions experience subsequent declines, with the United States showing a more pronounced drop compared to other countries. Despite the decline, asset turnover in other countries remains consistently higher than in the United States throughout the entire period. This suggests relatively better asset utilization efficiency outside the domestic market despite the downward trend.
Area Asset Turnover: United States
Abbott Laboratories; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The analysis of the annual data for the United States geographic area reveals several significant trends over the specified period.
- Net Sales
- Net sales demonstrate an overall upward trend from 2020 through 2024, beginning at $13,022 million in 2020 and increasing to $18,142 million in 2022. However, there is a notable decline in sales in 2023, dropping to $15,452 million, before partially recovering to $16,323 million in 2024. This pattern suggests some volatility in sales performance, with a peak in 2022 and a contraction the following year that is not fully offset by the subsequent year’s increase.
- Long-lived Assets
- Long-lived assets consistently increase throughout the period, growing from $6,100 million in 2020 to $10,300 million in 2024. This steady rise indicates ongoing investment in property, plant, equipment, or other long-term assets within the United States, signifying a commitment to expanding or maintaining operational capacity despite fluctuations in sales.
- Area Asset Turnover
- The area asset turnover ratio exhibits an initial increase, rising from 2.13 in 2020 to a peak of 2.45 in 2021. This suggests improved efficiency in using assets to generate sales. However, from 2022 onwards, the ratio declines significantly to 1.58 by 2024. This reduction implies decreasing efficiency, possibly due to the expansion in long-lived assets outpacing sales growth or structural changes affecting productivity.
Overall, the data indicate an environment of expanding asset base accompanied by fluctuating sales levels, particularly a peak and subsequent dip in net sales. The decline in asset turnover ratio after 2021 may reflect challenges in leveraging the increased asset investment efficiently to sustain previous levels of sales productivity.
Area Asset Turnover: Other countries
Abbott Laboratories; Other countries; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2024 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial data for the "Other countries" geographic area reveal several noteworthy trends over the five-year span from 2020 to 2024.
- Net Sales
- Net sales increased significantly from 21,586 million US dollars in 2020 to 26,433 million in 2021, marking a strong growth year. Following this peak, the sales figures declined slightly to 25,511 million in 2022 and further to 24,657 million in 2023. In 2024, a modest recovery to 25,627 million US dollars is observed, indicating some stabilization but not reaching the 2021 level. Overall, the trend shows an initial surge followed by a mild downward adjustment and partial rebound.
- Long-lived Assets
- Long-lived assets consistently increased each year, starting at 5,600 million US dollars in 2020 and rising steadily to 8,200 million by 2024. This represents an overall growth of approximately 46% over the five-year period, indicating ongoing capital investment or acquisition of fixed assets in this geographic area. The pattern suggests the company has been focusing on asset expansion despite fluctuations in sales.
- Area Asset Turnover
- The area asset turnover ratio, which measures how efficiently long-lived assets generate sales, demonstrates a declining trend. The ratio fell from 3.85 in 2020 to 4.20 in 2021, showing an initial increase in efficiency. However, after 2021, it steadily decreased each year to 3.92 in 2022, 3.38 in 2023, and further to 3.13 in 2024. This decline suggests that despite the increases in net sales and long-lived assets, the efficiency of asset utilization to generate revenue has diminished, possibly due to the faster growth of assets relative to sales or challenges in maximizing the productivity of invested assets.
Net sales
Abbott Laboratories, net sales by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries | |||||
| Consolidated |
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).
- United States Net Sales
- The net sales in the United States demonstrated an overall upward trend from 2020 through 2024. Starting at 13,022 million USD in 2020, sales increased significantly to 16,642 million USD in 2021 and further to 18,142 million USD in 2022. However, there was a notable decline to 15,452 million USD in 2023, followed by a partial recovery to 16,323 million USD in 2024.
- Other Countries Net Sales
- Sales in other countries exhibited growth from 2020 through 2021, rising from 21,586 million USD to 26,433 million USD. This was followed by a slight decrease in 2022 to 25,511 million USD and a continued gradual decline to 24,657 million USD in 2023. In 2024, sales recovered marginally to 25,627 million USD. Overall, these sales remained significantly higher than those in the United States throughout the period.
- Consolidated Net Sales
- The consolidated net sales rose sharply from 34,608 million USD in 2020 to 43,075 million USD in 2021. Thereafter, consolidated sales stabilized around the mid-40,000 million USD range with slight fluctuations: 43,653 million USD in 2022, declining to 40,109 million USD in 2023, and recovering to 41,950 million USD in 2024. The fluctuations broadly mirror the patterns observed in both the United States and other countries, indicating that the regional sales dynamics significantly influence the overall consolidated results.
- General Observations
- Overall, the data shows growth in net sales across both the United States and other countries from 2020 to 2021, followed by some volatility and partial declines in 2023 before rebounding in 2024. The sales figures outside the United States consistently exceed the domestic sales, contributing a larger share to the consolidated totals. The decline in 2023 across most regions suggests an external or company-specific factor affecting performance that year, while the subsequent rebound in 2024 indicates a recovery trend.
Long-lived assets
Abbott Laboratories, long-lived assets by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries | |||||
| Consolidated |
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 analysis of the long-lived assets by geographic area over the five-year period reveals consistent growth in both the United States and other countries, contributing to an overall increase in consolidated assets.
- United States
- The United States long-lived assets show a steady upward trend from 6,100 million US dollars in 2020 to 10,300 million US dollars in 2024. This represents a cumulative increase of approximately 68.9% over the five years, with the most significant annual increments occurring between 2022 and 2024. The growth rate appears to accelerate in the later years.
- Other countries
- Assets in other countries also show growth, rising from 5,600 million US dollars in 2020 to 8,200 million US dollars in 2024. Although the increase is less pronounced compared to the United States, the assets still expand by about 46.4% during the period. The growth is steady, with a notable acceleration between 2022 and 2024, similar to the United States.
- Consolidated
- The consolidated total long-lived assets reflect the combined growth in both regions, increasing from 11,700 million US dollars in 2020 to 18,500 million US dollars in 2024. This marks an aggregate increase of roughly 58.1%. The consolidated trend mirrors the patterns seen in the individual components, showing particularly strong growth in the latter half of the period.
Overall, the data indicates sustained expansion in long-lived assets across both domestic and international locations, with the domestic segment exhibiting a more accelerated growth rate. This might suggest increased investment or asset acquisition efforts domestically, supported by consistent international asset growth. The upward trends in both segments drive the consolidated asset base to substantially increase over the analyzed period.