Analysis of Geographic Areas
Abbott Laboratories operates in 2 regions: United States and Other countries.
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- Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Area Asset Turnover
Abbott Laboratories, asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries |
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).
Asset turnover ratios for the geographic areas presented demonstrate differing performance trends between the United States and other countries over the five-year period. A consistent decline is observed in the United States, while other countries exhibit a similar, though less pronounced, downward trend.
- United States
- The asset turnover ratio for the United States decreased steadily from 2.45 in 2021 to 1.44 in 2025. This represents a 41.2% decline over the period. The most significant decrease occurred between 2022 and 2023, with a drop of 0.62. Subsequent declines, while consistent, were more moderate.
- Other Countries
- The asset turnover ratio for other countries also decreased over the period, moving from 4.20 in 2021 to 2.64 in 2025, a decrease of 37.1%. The rate of decline appears to be slowing, with smaller decreases observed in the later years of the period. The largest single-year decrease was from 2021 to 2022, with a reduction of 0.28.
- Comparative Trends
- Throughout the observed period, the asset turnover ratio in other countries consistently exceeded that of the United States. The difference between the ratios narrowed over time, as the decline in the United States was proportionally greater than that in other countries. In 2021, the ratio for other countries was 1.71 times that of the United States, while in 2025, it was only 1.83 times greater.
The decreasing asset turnover ratios in both geographic areas suggest a potential decline in the efficiency with which assets are being utilized to generate sales. Further investigation would be required to determine the underlying causes of these trends, such as changes in sales volume, asset base, or industry dynamics.
Area Asset Turnover: United States
Abbott Laboratories; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial performance within the United States reveals a declining trend in asset utilization efficiency between 2021 and 2025. While net sales experienced fluctuations, long-lived assets consistently increased, contributing to the observed decrease in the area asset turnover ratio.
- Net Sales
- Net sales in the United States increased from US$16,642 million in 2021 to US$18,142 million in 2022, representing a growth of approximately 8.9%. However, sales decreased to US$15,452 million in 2023 before recovering to US$16,323 million in 2024 and further increasing to US$17,126 million in 2025. This indicates volatility in sales performance over the five-year period.
- Long-Lived Assets
- Long-lived assets demonstrated a consistent upward trend, increasing from US$6,800 million in 2021 to US$11,900 million in 2025. This represents a substantial increase of approximately 74.7% over the period. The continuous growth in long-lived assets suggests ongoing investment in the United States operations.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate sales, decreased steadily from 2.45 in 2021 to 1.44 in 2025. This decline suggests that the company is generating less revenue for each dollar of long-lived assets invested in the United States. The ratio decreased from 2.36 in 2022 to 1.74 in 2023, a more pronounced drop, and continued to fall in subsequent years. This trend warrants further investigation to determine the underlying causes, such as potential inefficiencies in asset management or a shift in business strategy.
The combination of fluctuating sales and consistently increasing long-lived assets resulted in a significant reduction in asset turnover. Management should evaluate the effectiveness of asset utilization strategies within the United States to identify opportunities for improvement and enhance operational efficiency.
Area Asset Turnover: Other countries
Abbott Laboratories; Other countries; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= ÷ =
The financial performance related to assets in areas outside of the United States demonstrates a declining trend in efficiency from 2021 to 2025. Net sales in these areas experienced initial contraction followed by recovery, while long-lived assets consistently increased over the period. This combination resulted in a decreasing area asset turnover ratio.
- Net Sales
- Net sales decreased from US$26,433 million in 2021 to US$25,511 million in 2022, representing a contraction of approximately 3.4%. Sales continued to decline to US$24,657 million in 2023. However, a recovery began in 2024 with sales reaching US$25,627 million, and this upward trend continued into 2025, with sales increasing to US$27,202 million.
- Long-Lived Assets
- Long-lived assets exhibited a consistent upward trend throughout the five-year period. Beginning at US$6,300 million in 2021, these assets increased to US$6,500 million in 2022, US$7,300 million in 2023, US$8,200 million in 2024, and reached US$10,300 million in 2025. This represents a substantial increase of approximately 63.5% over the period.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of asset utilization in generating sales, decreased steadily from 4.20 in 2021 to 2.64 in 2025. The ratio declined to 3.92 in 2022, then to 3.38 in 2023, 3.13 in 2024, and finally to 2.64 in 2025. This indicates that a greater amount of assets is required to generate each dollar of sales in these areas over time.
The increasing investment in long-lived assets, coupled with the initial decline and subsequent recovery of net sales, contributed to the observed decrease in asset turnover. While sales have begun to recover, the rate of asset growth has outpaced sales growth, resulting in reduced efficiency. Further investigation may be warranted to understand the drivers behind the asset increases and assess the potential for improved asset utilization.
Net sales
Abbott Laboratories, net sales by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries | |||||
| Consolidated |
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).
Net sales performance reveals distinct trends across geographic regions between 2021 and 2025. While consolidated net sales demonstrate overall growth, a closer examination of the United States and other countries reveals differing patterns.
- United States Net Sales
- Net sales within the United States experienced initial growth from 2021 to 2022, increasing from US$16,642 million to US$18,142 million. However, a subsequent decline was observed in 2023, falling to US$15,452 million. A partial recovery occurred in 2024, reaching US$16,323 million, followed by further growth in 2025 to US$17,126 million. This indicates a period of volatility with a net increase over the five-year period, but with significant fluctuations.
- Other Countries Net Sales
- Net sales from regions outside the United States showed a slight decrease from US$26,433 million in 2021 to US$25,511 million in 2022. This downward trend continued in 2023, with sales reaching US$24,657 million. A modest increase was recorded in 2024, with sales rising to US$25,627 million, and this positive momentum continued into 2025, reaching US$27,202 million. The overall trend suggests a period of stagnation followed by a recovery towards the end of the analyzed period.
- Consolidated Net Sales
- Consolidated net sales increased from US$43,075 million in 2021 to US$43,653 million in 2022. A decrease was then observed in 2023, with sales falling to US$40,109 million. Sales rebounded in 2024 to US$41,950 million, and continued to grow in 2025, reaching US$44,328 million. The consolidated figures reflect the combined performance of both geographic areas, demonstrating an overall upward trend despite the intermediate decline.
- Regional Contribution
- In 2021, other countries contributed approximately 61.4% of consolidated net sales, while the United States accounted for approximately 38.6%. By 2025, the contribution from other countries had shifted slightly to approximately 61.4% while the United States accounted for approximately 38.6%. This indicates a relatively stable proportional contribution from each region over the five-year period.
The fluctuations in United States net sales appear to have been offset by the performance of other countries, contributing to the overall growth in consolidated net sales. The recovery observed in both regions during 2024 and 2025 suggests a potential stabilization of sales performance.
Long-lived assets
Abbott Laboratories, long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Other countries | |||||
| Consolidated |
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).
Long-lived assets exhibited consistent growth across all reported geographic areas between December 31, 2021, and December 31, 2025. The rate of increase, however, varied between the United States and other countries.
- United States
- Long-lived assets in the United States demonstrated a steady and substantial increase over the five-year period, rising from US$6,800 million in 2021 to US$11,900 million in 2025. This represents a cumulative growth of approximately 74.3%. The annual increases were consistently positive, with acceleration observed in later years. The increase from 2024 to 2025 was particularly notable.
- Other Countries
- Long-lived assets in other countries also increased, moving from US$6,300 million in 2021 to US$10,300 million in 2025. This represents a cumulative growth of approximately 63.5%. While positive, the growth rate in other countries was generally less pronounced than that observed in the United States. The increase from 2021 to 2022 was minimal, but growth accelerated in subsequent years.
- Consolidated
- Consolidated long-lived assets grew from US$13,100 million in 2021 to US$22,200 million in 2025, a cumulative increase of approximately 69.5%. The consolidated figures reflect the combined growth of both the United States and other countries. The rate of consolidated growth also accelerated over the period, mirroring the trends observed in the individual geographic areas.
The United States consistently held a larger proportion of the total long-lived assets. While both regions experienced growth, the United States demonstrated a higher rate of asset accumulation throughout the analyzed period. This suggests a greater allocation of capital investment within the United States compared to other countries.