Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Abbott Laboratories, solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial data reveals several notable trends regarding the company's leverage and ability to cover interest expenses over the analyzed periods.
- Debt to Equity
- The debt to equity ratio displays a consistent downward trajectory, declining from 0.55 in early 2021 to 0.25 by late 2025. This suggests a gradual reduction in reliance on debt relative to shareholders' equity, indicating strengthening equity positions or debt repayments over time.
- Debt to Capital
- This ratio mirrors the decline observed in debt to equity, decreasing from 0.35 to 0.20 throughout the period. The trend reflects a decrease in the proportion of debt in the overall capital structure, signifying a more conservative financing approach or effective deleveraging efforts.
- Debt to Assets
- The ratio of debt to total assets dips slightly from 0.25 in early 2021 to 0.15 by the end of 2025. This indicates a steady reduction in the proportion of assets financed through debt, potentially improving the company's financial stability and reducing solvency risk.
- Financial Leverage
- Financial leverage decreases from a ratio of 2.17 to 1.65 during the timeframe. This decline indicates that the company is gradually reducing the use of debt relative to equity in its capital structure, which typically reduces financial risk and may positively impact creditworthiness.
- Interest Coverage
- Interest coverage ratios exhibit significant improvement over several years. Starting near 12.77 times in early 2021, the ratio peaks around 20.07 in mid-2022 before experiencing some fluctuation. It maintains a generally upward trend from 2023 onward, reaching nearly 17 times by late 2025. This improvement implies enhanced ability to meet interest obligations, reflecting stronger earnings or reduced interest expenses, and indicating improved financial health.
Overall, the data depicts a company that is effectively reducing its debt levels relative to equity, capital, and assets while simultaneously enhancing its capacity to cover interest expenses. These trends suggest strengthening financial stability and decreasing risk associated with leverage over the analyzed periods.
Debt Ratios
Coverage Ratios
Debt to Equity
Abbott Laboratories, debt to equity calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 197) | 199) | 199) | ||||||
| Current portion of long-term debt | 1,345) | 507) | 506) | 1,500) | 2,154) | 1,615) | 2,010) | 1,080) | 1,051) | 2,284) | 2,285) | 2,251) | 1,117) | 5) | 4) | 754) | 754) | 755) | 756) | ||||||
| Long-term debt, excluding current portion | 11,596) | 12,930) | 12,736) | 12,625) | 12,825) | 13,139) | 12,576) | 13,599) | 14,477) | 14,562) | 14,615) | 14,522) | 15,297) | 16,755) | 17,086) | 17,296) | 17,446) | 17,547) | 17,489) | ||||||
| Total debt | 12,941) | 13,437) | 13,242) | 14,125) | 14,979) | 14,754) | 14,586) | 14,679) | 15,528) | 16,846) | 16,900) | 16,773) | 16,414) | 16,760) | 17,090) | 18,050) | 18,397) | 18,501) | 18,444) | ||||||
| Total Abbott shareholders’ investment | 50,954) | 50,565) | 48,811) | 47,664) | 39,796) | 39,318) | 38,810) | 38,603) | 37,481) | 37,174) | 37,010) | 36,686) | 35,675) | 36,490) | 35,399) | 35,802) | 34,422) | 33,800) | 33,562) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | 0.25 | 0.27 | 0.27 | 0.30 | 0.38 | 0.38 | 0.38 | 0.38 | 0.41 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.48 | 0.50 | 0.53 | 0.55 | 0.55 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Elevance Health Inc. | 0.73 | 0.69 | 0.71 | 0.76 | 0.62 | 0.66 | 0.65 | 0.64 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.66 | 0.65 | 0.64 | 0.64 | 0.66 | 0.69 | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Medtronic PLC | 0.54 | 0.58 | 0.58 | 0.50 | 0.49 | 0.49 | 0.49 | 0.47 | 0.55 | 0.51 | 0.44 | 0.46 | 0.48 | 0.49 | 0.50 | 0.51 | 0.60 | 0.60 | 0.57 | ||||||
| UnitedHealth Group Inc. | 0.84 | 0.84 | 0.86 | 0.83 | 0.83 | 0.84 | 0.85 | 0.70 | 0.75 | 0.80 | 0.87 | 0.74 | 0.65 | 0.71 | 0.65 | 0.64 | 0.67 | 0.70 | 0.70 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to equity = Total debt ÷ Total Abbott shareholders’ investment
= 12,941 ÷ 50,954 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt demonstrates a generally declining trend over the observed periods. Starting at approximately $18.4 billion in the first quarter of 2021, the debt decreases steadily to about $12.9 billion by the third quarter of 2025. Some minor fluctuations occur, such as a slight increase around the end of 2022 and the beginning of 2023, but the overall trajectory indicates a consistent reduction in debt levels.
- Total Abbott Shareholders’ Investment
- Shareholders' investment shows an overall upward trend with some periods of deceleration. From $33.6 billion at the beginning of 2021, it gradually rises to approximately $50.9 billion by the third quarter of 2025. Notably, a significant increase is observed starting in late 2024 and continuing into 2025, where the investment value jumps from around $39.8 billion to close to $51 billion, suggesting increased equity or retained earnings growth during this timeframe.
- Debt to Equity Ratio
- The debt to equity ratio steadily declines throughout the periods, indicating a reduction in the company’s leverage. The ratio begins at around 0.55 in early 2021 and falls to approximately 0.25 by the third quarter of 2025. This declining ratio underscores a strengthening equity base relative to debt, reflecting a more conservative capital structure or improved financial stability over time.
- Summary of Financial Position Trends
- The combined trends suggest a deliberate strategy focused on deleveraging and enhancing the equity base. The consistent decrease in total debt, coupled with the growth in shareholders’ investment and the resulting lower debt to equity ratio, points to improved creditworthiness and a stronger balance sheet. The company's financial structure appears to be shifting towards reduced reliance on debt financing, likely positioning it for greater financial flexibility.
Debt to Capital
Abbott Laboratories, debt to capital calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 197) | 199) | 199) | ||||||
| Current portion of long-term debt | 1,345) | 507) | 506) | 1,500) | 2,154) | 1,615) | 2,010) | 1,080) | 1,051) | 2,284) | 2,285) | 2,251) | 1,117) | 5) | 4) | 754) | 754) | 755) | 756) | ||||||
| Long-term debt, excluding current portion | 11,596) | 12,930) | 12,736) | 12,625) | 12,825) | 13,139) | 12,576) | 13,599) | 14,477) | 14,562) | 14,615) | 14,522) | 15,297) | 16,755) | 17,086) | 17,296) | 17,446) | 17,547) | 17,489) | ||||||
| Total debt | 12,941) | 13,437) | 13,242) | 14,125) | 14,979) | 14,754) | 14,586) | 14,679) | 15,528) | 16,846) | 16,900) | 16,773) | 16,414) | 16,760) | 17,090) | 18,050) | 18,397) | 18,501) | 18,444) | ||||||
| Total Abbott shareholders’ investment | 50,954) | 50,565) | 48,811) | 47,664) | 39,796) | 39,318) | 38,810) | 38,603) | 37,481) | 37,174) | 37,010) | 36,686) | 35,675) | 36,490) | 35,399) | 35,802) | 34,422) | 33,800) | 33,562) | ||||||
| Total capital | 63,895) | 64,002) | 62,053) | 61,789) | 54,775) | 54,072) | 53,396) | 53,282) | 53,009) | 54,020) | 53,910) | 53,459) | 52,089) | 53,250) | 52,489) | 53,852) | 52,819) | 52,301) | 52,006) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 0.20 | 0.21 | 0.21 | 0.23 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.31 | 0.31 | 0.31 | 0.32 | 0.31 | 0.33 | 0.34 | 0.35 | 0.35 | 0.35 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Elevance Health Inc. | 0.42 | 0.41 | 0.41 | 0.43 | 0.38 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.40 | 0.40 | 0.39 | 0.39 | 0.39 | 0.40 | 0.41 | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Medtronic PLC | 0.35 | 0.37 | 0.37 | 0.33 | 0.33 | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.34 | 0.37 | 0.37 | 0.36 | ||||||
| UnitedHealth Group Inc. | 0.46 | 0.46 | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.41 | 0.43 | 0.44 | 0.46 | 0.43 | 0.39 | 0.41 | 0.39 | 0.39 | 0.40 | 0.41 | 0.41 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,941 ÷ 63,895 = 0.20
2 Click competitor name to see calculations.
- Total Debt
- The total debt decreased steadily from 18,444 million USD at the end of the first quarter of 2021 to 12,941 million USD by the third quarter of 2025. There were minor fluctuations within certain quarters, such as a slight increase during the final quarter of 2022, but the overall trend illustrates a notable reduction in debt over the observed period.
- Total Capital
- Total capital exhibited relative stability with slight growth from 52,006 million USD at the beginning of 2021 to reach a peak around 64,002 million USD in the third quarter of 2025. The data show periods of incremental increases interspersed with small declines, but the general trajectory is upward, reflecting potential capital expansion or accumulation over time.
- Debt to Capital Ratio
- The debt to capital ratio showed a consistent downward trend, starting at 0.35 in the first quarter of 2021 and declining to 0.20 by the third quarter of 2025. This reduction indicates an improvement in the capital structure with relatively less reliance on debt financing as compared to overall capital, suggesting enhanced financial stability and potentially lower financial risk.
Debt to Assets
Abbott Laboratories, debt to assets calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 197) | 199) | 199) | ||||||
| Current portion of long-term debt | 1,345) | 507) | 506) | 1,500) | 2,154) | 1,615) | 2,010) | 1,080) | 1,051) | 2,284) | 2,285) | 2,251) | 1,117) | 5) | 4) | 754) | 754) | 755) | 756) | ||||||
| Long-term debt, excluding current portion | 11,596) | 12,930) | 12,736) | 12,625) | 12,825) | 13,139) | 12,576) | 13,599) | 14,477) | 14,562) | 14,615) | 14,522) | 15,297) | 16,755) | 17,086) | 17,296) | 17,446) | 17,547) | 17,489) | ||||||
| Total debt | 12,941) | 13,437) | 13,242) | 14,125) | 14,979) | 14,754) | 14,586) | 14,679) | 15,528) | 16,846) | 16,900) | 16,773) | 16,414) | 16,760) | 17,090) | 18,050) | 18,397) | 18,501) | 18,444) | ||||||
| Total assets | 84,181) | 83,999) | 81,448) | 81,414) | 74,356) | 73,017) | 72,467) | 73,214) | 72,090) | 73,354) | 73,794) | 74,438) | 72,801) | 74,202) | 74,007) | 75,196) | 73,795) | 73,269) | 72,785) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.15 | 0.16 | 0.16 | 0.17 | 0.20 | 0.20 | 0.20 | 0.20 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Elevance Health Inc. | 0.26 | 0.25 | 0.25 | 0.27 | 0.23 | 0.25 | 0.24 | 0.23 | 0.22 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.23 | 0.24 | 0.24 | ||||||
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | ||||||
| Medtronic PLC | 0.30 | 0.31 | 0.31 | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | 0.30 | 0.29 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.31 | 0.31 | 0.31 | ||||||
| UnitedHealth Group Inc. | 0.25 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.23 | 0.22 | 0.23 | 0.25 | 0.23 | 0.20 | 0.22 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,941 ÷ 84,181 = 0.15
2 Click competitor name to see calculations.
The financial data reveals a clear trend of declining total debt over the analyzed periods. Beginning at approximately $18.4 billion, total debt consistently decreases, reaching around $12.9 billion by the final period. This reduction is notably steady with occasional minor fluctuations, suggesting an ongoing strategic focus on deleveraging.
Total assets exhibit moderate variation throughout the timeframe, initially hovering around $72.8 billion and generally increasing toward the later periods. Noteworthy is the substantial asset growth starting around the sixteenth period, where total assets rise significantly from approximately $74.4 billion to $84.2 billion by the last recorded period. This increase indicates possible asset acquisitions, investments, or appreciations in asset values.
The debt to assets ratio demonstrates a downward trend, moving from approximately 0.25 in the earliest periods to about 0.15 in the latest periods. This decline reflects the combined effect of reducing total debt and increasing total assets, enhancing the company's leverage position and potentially improving financial stability. The ratio decrease is gradual but consistent, indicating steady progress in optimizing the capital structure.
- Total Debt
- Displayed a consistent decrease over the periods analyzed, reducing from ~ $18.4 billion to ~$12.9 billion, implying a strategic debt reduction effort.
- Total Assets
- Initially relatively stable with minor fluctuations, followed by notable growth in later periods, increasing from around $72.8 billion to over $84 billion.
- Debt to Assets Ratio
- Showed a steady decline from 0.25 to 0.15, indicating improved leverage metrics driven by debt reduction and asset growth.
Financial Leverage
Abbott Laboratories, financial leverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 84,181) | 83,999) | 81,448) | 81,414) | 74,356) | 73,017) | 72,467) | 73,214) | 72,090) | 73,354) | 73,794) | 74,438) | 72,801) | 74,202) | 74,007) | 75,196) | 73,795) | 73,269) | 72,785) | ||||||
| Total Abbott shareholders’ investment | 50,954) | 50,565) | 48,811) | 47,664) | 39,796) | 39,318) | 38,810) | 38,603) | 37,481) | 37,174) | 37,010) | 36,686) | 35,675) | 36,490) | 35,399) | 35,802) | 34,422) | 33,800) | 33,562) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | 1.65 | 1.66 | 1.67 | 1.71 | 1.87 | 1.86 | 1.87 | 1.90 | 1.92 | 1.97 | 1.99 | 2.03 | 2.04 | 2.03 | 2.09 | 2.10 | 2.14 | 2.17 | 2.17 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Elevance Health Inc. | 2.79 | 2.79 | 2.82 | 2.83 | 2.66 | 2.68 | 2.76 | 2.77 | 2.88 | 2.86 | 2.92 | 2.83 | 2.86 | 2.82 | 2.79 | 2.70 | 2.74 | 2.75 | 2.83 | ||||||
| Intuitive Surgical Inc. | 1.14 | 1.13 | 1.12 | 1.14 | 1.14 | 1.13 | 1.13 | 1.16 | 1.17 | 1.17 | 1.16 | 1.17 | 1.15 | 1.14 | 1.13 | 1.14 | 1.13 | 1.13 | 1.14 | ||||||
| Medtronic PLC | 1.82 | 1.86 | 1.87 | 1.79 | 1.75 | 1.75 | 1.77 | 1.77 | 1.83 | 1.80 | 1.71 | 1.73 | 1.75 | 1.76 | 1.78 | 1.81 | 1.92 | 1.91 | 1.87 | ||||||
| UnitedHealth Group Inc. | 3.29 | 3.26 | 3.26 | 3.22 | 3.17 | 3.20 | 3.28 | 3.08 | 3.34 | 3.40 | 3.49 | 3.16 | 3.26 | 3.16 | 3.04 | 2.96 | 3.03 | 3.05 | 3.09 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Financial leverage = Total assets ÷ Total Abbott shareholders’ investment
= 84,181 ÷ 50,954 = 1.65
2 Click competitor name to see calculations.
The financial data reveals a consistent pattern of growth in total assets over the observed periods, with fluctuations around a generally upward trajectory. From the first quarter of 2021 to the first quarter of 2025, total assets increased from approximately $72.8 billion to over $84.1 billion, highlighting the company's expanding asset base. Notably, there was a marked acceleration in asset growth starting in the last quarter of 2024, where the total assets surged more sharply compared to prior incremental gains.
Shareholders’ investment exhibited a steady increase throughout the period as well, illustrating growing equity value. Beginning at around $33.6 billion in early 2021, this figure consistently climbed to approximately $50.9 billion by early 2025. This increase reflects a strengthening of the company’s net worth and suggests ongoing profitability or retained earnings accumulation. The most significant jumps occur towards the end of the period, particularly from late 2024 onward, implying perhaps substantial equity injections, improved operational results, or other positive equity movements.
Concomitantly, financial leverage, measured as the ratio of total assets to shareholders’ equity, showed a gradual decline from 2.17 at the start of 2021 to approximately 1.65 by the first quarter of 2025. This downward trend in leverage indicates a relative reduction in reliance on debt financing or liabilities in financing the company’s assets. The lower leverage ratio suggests improved financial stability and potentially lower financial risk, as the equity base is growing at a faster rate than total assets or liabilities.
- Total Assets
- Exhibited sustained growth over four years, growing by about 15.5% from Q1 2021 to Q1 2025, with notable acceleration in late 2024.
- Shareholders’ Investment
- Displayed a steady upward trend, increasing by approximately 51.5% over the same period, indicating enhanced equity strength and possibly improved retained earnings or capital contributions.
- Financial Leverage
- Experienced a steady decline from 2.17 to 1.65, signaling a reduction in debt reliance and an improvement in the balance between liabilities and equity, thus enhancing financial stability.
In summary, the data points to overall asset growth supported by a robust and expanding equity base while simultaneously reducing financial leverage. These shifts suggest a strengthening financial position, with lower risk from debt and an increasingly solid foundation derived from shareholders’ equity.
Interest Coverage
Abbott Laboratories, interest coverage calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net earnings | 1,644) | 1,779) | 1,325) | 9,229) | 1,646) | 1,302) | 1,225) | 1,594) | 1,436) | 1,375) | 1,318) | 1,033) | 1,435) | 2,018) | 2,447) | 1,989) | 2,100) | 1,189) | 1,793) | ||||||
| Less: Net earnings from discontinued operations, net of tax | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Add: Income tax expense | 536) | 371) | 453) | (7,199) | 294) | 305) | 211) | 201) | 235) | 261) | 244) | 287) | 323) | 334) | 429) | 338) | 393) | 159) | 250) | ||||||
| Add: Interest expense | 121) | 121) | 131) | 136) | 142) | 140) | 141) | 159) | 166) | 159) | 153) | 154) | 141) | 132) | 131) | 131) | 133) | 134) | 135) | ||||||
| Earnings before interest and tax (EBIT) | 2,301) | 2,271) | 1,909) | 2,166) | 2,082) | 1,747) | 1,577) | 1,954) | 1,837) | 1,795) | 1,715) | 1,474) | 1,899) | 2,484) | 3,007) | 2,458) | 2,626) | 1,482) | 2,178) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Interest coverage1 | 16.99 | 15.90 | 14.40 | 13.55 | 12.65 | 11.74 | 11.46 | 11.46 | 10.79 | 11.34 | 13.06 | 15.89 | 18.41 | 20.07 | 18.10 | 16.41 | 16.38 | 14.28 | 12.77 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||
| Elevance Health Inc. | 6.16 | 6.33 | 7.14 | 7.67 | 8.52 | 9.07 | 8.70 | 8.49 | 8.87 | 9.76 | 9.95 | 10.13 | 10.75 | 10.71 | 11.01 | 10.93 | 10.04 | 8.03 | 9.09 | ||||||
| Medtronic PLC | 7.89 | 7.72 | 7.65 | 7.73 | 8.87 | 8.97 | 9.90 | 9.43 | 10.15 | 11.02 | 10.88 | 10.98 | 10.95 | 10.18 | 5.65 | 5.21 | 3.68 | 4.02 | 6.60 | ||||||
| UnitedHealth Group Inc. | 6.51 | 7.48 | 7.94 | 6.14 | 6.39 | 6.79 | 7.53 | 9.97 | 10.21 | 10.99 | 12.25 | 13.59 | 14.66 | 14.45 | 14.26 | 14.44 | 13.46 | 13.03 | 14.88 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (2,301 + 2,271 + 1,909 + 2,166)
÷ (121 + 121 + 131 + 136)
= 16.99
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations and trends in the company's operating performance and its ability to cover interest expenses over the observed periods.
- Earnings Before Interest and Tax (EBIT)
-
EBIT exhibits considerable volatility across the quarters. The initial periods indicate a peak at the end of 2021, with a high value of 2,626 million USD, followed by a decline of almost 44% to 1,474 million USD by the end of 2022. This downward trend marks a period of reduced operating income.
Subsequently, EBIT shows a recovery phase starting in early 2023, with a gradual upward trend, reaching 2,166 million USD by the end of 2024. Nonetheless, the peaks are less pronounced compared to earlier highs.
In the final periods observed, EBIT remains relatively strong, stabilizing around the 2,300 million USD mark, suggesting an improvement in operating profitability.
- Interest Expense
-
Interest expenses remain relatively stable throughout the periods, fluctuating in a narrow band between 121 and 166 million USD. A slight increase occurs toward the end of 2021 and early 2022, peaking at 166 million USD, followed by a gradual decline in the subsequent quarters.
This stability in interest costs indicates limited changes in the company's debt structure or borrowing costs during the timeframe.
- Interest Coverage Ratio
-
The interest coverage ratio, which measures the company's ability to meet interest obligations from operating earnings, generally trends downward from a high of approximately 18.10 in early 2022 to a low near 10.79 in late 2023. This decline corresponds with the decrease in EBIT and stable interest expenses.
Following this dip, the ratio exhibits a sustained improvement, rising to nearly 17.00 by the third quarter of 2025, reflecting enhanced operating earnings relative to interest expenses.
This trend indicates that while the company faced pressure on its ability to cover interest in certain periods, it has progressively restored its financial cushion.
In summary, the company experienced a period of operating income decline during late 2021 to late 2022, impacting its interest coverage. However, steady interest expenses and a subsequent recovery in EBIT have gradually strengthened the firm's capacity to service debt interest. This suggests improving operational efficiency and effective financial management in the later periods.