Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Abbott Laboratories pages available for free this week:
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Abbott Laboratories for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Abbott Laboratories, long-term (investment) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the financial turnover ratios over the reported periods reveals distinct trends in the company's operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows an initial upward trend starting from 3.83 and peaking around 5.18, indicating an improved efficiency in generating revenue from fixed assets through the quarters of 2020 and 2021. Subsequently, there is a consistent decline noted from the fourth quarter of 2021 through to the end of the reporting period in 2025, settling at approximately 3.87. This suggests a reduced effectiveness or potential asset base growth outpacing revenue growth during the latter periods.
- Total Asset Turnover
- The total asset turnover ratio follows a somewhat similar pattern albeit with less pronounced fluctuations. Starting modestly at 0.48, the ratio improves steadily, reaching a peak of about 0.62 in late 2022, reflecting increased efficiency in using total assets to generate sales. However, the ratio experiences a slight decrease afterward, stabilizing around 0.52 toward early 2025, indicating a marginal reduction in asset use efficiency over the more recent quarters.
- Equity Turnover
- Equity turnover demonstrates a noticeable rise in the initial periods, climbing from 1.06 to a peak near 1.26 by the end of 2021. However, a declining trend follows this peak, with the ratio gradually decreasing to just below 0.9 by the first quarter of 2025. This diminishing equity turnover could imply a slower rate of revenue generation relative to shareholders' equity or possible growth in equity not matched by revenue increases.
Overall, the data suggests that while the company initially enhanced its efficiency in asset and equity utilization, the latter periods have been characterized by a gradual decline in these turnover metrics, which may warrant further investigation into operational effectiveness or changes in asset and equity management strategies.
Net Fixed Asset Turnover
Abbott Laboratories, net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Net property and equipment | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Net fixed asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Net property and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales exhibited notable fluctuations over the analyzed periods. Initially, sales decreased from 7,726 million USD in March 2020 to 7,328 million USD in June 2020, followed by a significant increase, peaking at 11,468 million USD in December 2021. After this peak, there was a general declining trend through 2022, with a low of 9,747 million USD recorded in March 2023. Subsequently, sales stabilized and showed a modest upward trend, reaching 10,974 million USD in December 2024 before a slight decline to 10,358 million USD in March 2025.
- Net Property and Equipment
-
Net property and equipment values showed a gradual upward trend over the period. Starting at 7,907 million USD in March 2020, the value increased steadily, reaching 10,932 million USD by March 2025. This indicates continuous investment or accumulation of property and equipment assets over time, with occasional minor fluctuations but no abrupt changes.
- Net Fixed Asset Turnover Ratio
-
The net fixed asset turnover ratio, beginning to be reported from September 2020, peaked at 5.18 in December 2022, reflecting an efficient use of fixed assets during that period. From that peak, the ratio demonstrated a declining trend, decreasing to 3.87 by March 2025. This downward movement suggests a reduced efficiency in generating sales revenue from fixed assets over the most recent quarters.
- Overall Observations
-
The data reveals that while net property and equipment continue to increase, net sales experienced periods of volatility with a peak in late 2021 followed by a contraction and subsequent stabilization. The declining net fixed asset turnover ratio after 2022 indicates that despite increases in fixed asset investments, the company's efficiency in utilizing these assets to generate sales has diminished recently. This might imply challenges in asset utilization or a lag between asset investment and sales growth.
Total Asset Turnover
Abbott Laboratories, total asset turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Total asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in sales performance, asset base, and asset efficiency over the observed period.
- Net Sales
- Net sales exhibited a generally positive trajectory with fluctuations. Beginning at 7,726 million US dollars in the first quarter of 2020, sales declined slightly in the second quarter but rose sharply in the latter half of 2020, reaching a peak of 11,468 million by the end of that year. During 2021, net sales maintained a strong level, consistently above 10,000 million, though showing minor quarter-to-quarter variability. Early 2022 saw peak sales of nearly 11,895 million before a gradual decrease to approximately 9,747 million by the first quarter of 2023. Sales have since displayed moderate recovery and stability, fluctuating between 9,964 million and 10,635 million through 2024, before decreasing somewhat to 10,358 million in the first quarter of 2025.
- Total Assets
- Total assets have shown gradual growth with some variability. Starting at 66,777 million in the first quarter of 2020, total assets increased steadily, with a few periods of plateau and slight decline, reaching a peak of 81,414 million in the third quarter of 2024. The overall trend is upward with a notable acceleration in asset growth during late 2024 and early 2025, indicating either acquisitions, investments, or asset revaluation during the latest period.
- Total Asset Turnover
- The total asset turnover ratio, measuring the efficiency of asset use in generating sales, has been recorded from the third quarter of 2020 onwards. The ratio started at 0.48 and improved consistently through 2021, peaking at 0.62 by the fourth quarter of 2021. Subsequently, this ratio showed a gradual decline and stabilization around 0.55 to 0.56 across 2022 and 2023, maintaining near this level into 2024. Towards the end of the dataset, the turnover ratio decreases slightly to 0.52 by the first quarter of 2025. This trend suggests that while asset utilization efficiency improved strongly initially, it has since moderated and stabilized, with a slight deterioration at the end.
In summary, net sales show significant growth and cyclical fluctuations with a peak in late 2021 and early 2022, followed by moderate declines and stabilization. Total assets indicate steady long-term growth, especially marked in 2024. Asset turnover improved markedly through 2021 but has plateaued and slightly declined thereafter, signaling a potential dilution in efficiency as the asset base expanded. The data indicate a business navigating growth with efficient asset use that stabilizes as complexity increases.
Equity Turnover
Abbott Laboratories, equity turnover calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total Abbott shareholders’ investment | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| CVS Health Corp. | ||||||||||||||||||||||||||||
| Elevance Health Inc. | ||||||||||||||||||||||||||||
| Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
| Medtronic PLC | ||||||||||||||||||||||||||||
| UnitedHealth Group Inc. | ||||||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Equity turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Total Abbott shareholders’ investment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a generally positive trajectory from March 31, 2020, through March 31, 2025, with some fluctuations. Starting at 7,726 million US dollars, sales increased notably through 2020 and 2021, peaking around the end of 2021 with values exceeding 11,000 million in some quarters. Thereafter, sales showed some volatility but mostly remained above 9,500 million US dollars per quarter. In the final period, March 31, 2025, net sales registered at approximately 10,358 million US dollars, indicating overall growth compared to the beginning of the period. The trend reveals resilience with periods of slight decline but an overarching upward movement over the five-year span.
- Total Abbott Shareholders’ Investment
- Shareholders' investment showed a consistent upward trend over the observed period. Beginning at roughly 30,218 million US dollars in March 2020, investment grew steadily to approach 37,603 million by December 2023. A significant increase is evident from March 2024 onwards, reaching nearly 48,811 million by March 2025. This sharp rise in the last two quarters suggests strong shareholder confidence or capital injections, marking a notable acceleration compared to prior years. Overall, investment figures reflect an expanding equity base supporting company operations and growth.
- Equity Turnover Ratio
- The equity turnover ratio, available from December 2020 onward, indicated a moderate increase in efficiency initially, rising from 1.06 to a peak of 1.26 during 2021 and 2022. This suggests the company was generating more sales per unit of equity invested during that timeframe. However, after this peak, a gradual decline in the ratio is observed, falling to approximately 1.04 from late 2023 through 2024. The decline continues more sharply towards the end of the period, descending to values of 0.88 and 0.87 by March 2025. This downward trend may imply a reduction in operational efficiency or slower sales growth relative to the growth in equity investment in the more recent quarters.
- Summary of Observations
- The data reveals overall growth in net sales and shareholders’ investment over five years, with net sales exhibiting resilience amid fluctuations and shareholder equity expanding substantially. The correlation between increasing shareholders’ investment and declining equity turnover ratio in the latter periods could point to a growing equity base outpacing sales growth, potentially signaling a shift in capital structure or operational dynamics. The initial improvement in equity turnover followed by its decline underscores changing efficiency in generating sales from equity over time. These trends highlight areas for further analysis regarding capital utilization and sales performance optimization.