Abbott Laboratories (ABT)

Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Abbott Laboratories, long-term (investment) activity ratios

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Net fixed asset turnover	3.60	3.66	3.56	3.41	3.70
Total asset turnover	0.36	0.40	0.49	0.49	0.51
Equity turnover	0.89	1.02	0.96	0.94	0.87

Source: Based on data from Abbott Laboratories Annual Reports

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Abbott Laboratories's net fixed asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Abbott Laboratories's total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	Abbott Laboratories's equity turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Abbott Laboratories, net fixed asset turnover calculation, comparison to benchmarks

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net sales	27,390	20,853	20,405	20,247	21,848
Net property and equipment	7,607	5,705	5,730	5,935	5,905
Ratio
Net fixed asset turnover¹	3.60	3.66	3.56	3.41	3.70
Benchmarks
Net Fixed Asset Turnover, Competitors
AbbVie Inc.	10.07	9.85	8.91	8.03	8.18
Allergan PLC	8.93	9.04	9.58	8.19	5.37
Amgen Inc.	4.37	4.41	4.27	3.70	3.40
Biogen Inc.	3.86	4.58	4.92	5.50	3.96
Bristol-Myers Squibb Co.	4.15	3.90	3.75	3.59	3.58
Celgene Corp.	12.12	12.03	11.25	11.77	10.72
Eli Lilly & Co.	2.59	2.57	2.48	2.46	2.90
Gilead Sciences Inc.	7.79	10.45	14.13	14.62	9.26
Johnson & Johnson	4.50	4.52	4.41	4.61	4.27
Merck & Co. Inc.	3.23	3.31	3.16	3.22	2.94
Pfizer Inc.	3.79	3.97	3.55	4.22	4.16
Regeneron Pharmaceuticals Inc.	2.49	2.33	2.57	2.89	3.99
Net Fixed Asset Turnover, Sector
Pharmaceuticals & Biotechnology	4.31	4.44	4.33	4.33	3.96
Net Fixed Asset Turnover, Industry
Health Care	7.11	7.33	7.00	6.93	6.50

Source: Based on data from Abbott Laboratories Annual Reports

2017 Calculations

¹ Net fixed asset turnover = Net sales ÷ Net property and equipment
= 27,390 ÷ 7,607 = 3.60

Ratio	Description	The company
Net fixed asset turnover	An activity ratio calculated as total revenue divided by net fixed assets.	Abbott Laboratories's net fixed asset turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Abbott Laboratories, total asset turnover calculation, comparison to benchmarks

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net sales	27,390	20,853	20,405	20,247	21,848
Total assets	76,250	52,666	41,247	41,275	42,953
Ratio
Total asset turnover¹	0.36	0.40	0.49	0.49	0.51
Benchmarks
Total Asset Turnover, Competitors
AbbVie Inc.	0.40	0.39	0.43	0.72	0.64
Allergan PLC	0.13	0.11	0.11	0.25	0.38
Amgen Inc.	0.27	0.28	0.29	0.28	0.28
Biogen Inc.	0.52	0.50	0.55	0.68	0.58
Bristol-Myers Squibb Co.	0.62	0.58	0.52	0.47	0.42
Celgene Corp.	0.43	0.40	0.34	0.44	0.48
Eli Lilly & Co.	0.51	0.55	0.56	0.53	0.66
Gilead Sciences Inc.	0.37	0.53	0.62	0.71	0.48
Johnson & Johnson	0.49	0.51	0.53	0.57	0.54
Merck & Co. Inc.	0.46	0.42	0.39	0.43	0.42
Pfizer Inc.	0.31	0.31	0.29	0.29	0.30
Regeneron Pharmaceuticals Inc.	0.67	0.70	0.73	0.73	0.71
Total Asset Turnover, Sector
Pharmaceuticals & Biotechnology	0.37	0.38	0.38	0.44	0.43
Total Asset Turnover, Industry
Health Care	0.54	0.55	0.53	0.61	0.62

Source: Based on data from Abbott Laboratories Annual Reports

2017 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 27,390 ÷ 76,250 = 0.36

Ratio	Description	The company
Total asset turnover	An activity ratio calculated as total revenue divided by total assets.	Abbott Laboratories's total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

Abbott Laboratories, equity turnover calculation, comparison to benchmarks

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net sales	27,390	20,853	20,405	20,247	21,848
Total Abbott shareholders' investment	30,897	20,538	21,211	21,526	25,171
Ratio
Equity turnover¹	0.89	1.02	0.96	0.94	0.87
Benchmarks
Equity Turnover, Competitors
AbbVie Inc.	5.54	5.53	5.79	11.46	4.18
Allergan PLC	0.22	0.19	0.20	0.46	0.91
Amgen Inc.	0.86	0.73	0.75	0.75	0.82
Biogen Inc.	0.97	0.94	1.15	0.90	0.80
Bristol-Myers Squibb Co.	1.77	1.20	1.16	1.07	1.08
Celgene Corp.	1.87	1.69	1.55	1.16	1.14
Eli Lilly & Co.	1.97	1.52	1.37	1.28	1.31
Gilead Sciences Inc.	1.26	1.59	1.73	1.59	0.95
Johnson & Johnson	1.27	1.02	0.98	1.07	0.96
Merck & Co. Inc.	1.17	0.99	0.88	0.87	0.88
Pfizer Inc.	0.74	0.89	0.75	0.70	0.68
Regeneron Pharmaceuticals Inc.	0.96	1.09	1.12	1.11	1.08
Equity Turnover, Sector
Pharmaceuticals & Biotechnology	0.98	0.93	0.88	0.96	0.93
Equity Turnover, Industry
Health Care	1.39	1.35	1.24	1.37	1.34

Source: Based on data from Abbott Laboratories Annual Reports

2017 Calculations

¹ Equity turnover = Net sales ÷ Total Abbott shareholders' investment
= 27,390 ÷ 30,897 = 0.89

Ratio	Description	The company
Equity turnover	An activity ratio calculated as total revenue divided by shareholders' equity.	Abbott Laboratories's equity turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.