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.
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Abbott Laboratories, long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
An analysis of investment activity ratios reveals a consistent downward trend across all primary efficiency metrics from March 2022 through March 2026. The overall trajectory suggests a diminishing capacity to generate revenue relative to the company's asset base and equity investments.
- Net Fixed Asset Turnover
- A progressive decline is observed in the efficiency of fixed asset utilization. After reaching a peak of 5.18 in September 2022, the ratio entered a steady decline, falling below 4.00 by December 2023 and ultimately reaching 3.65 by March 2026. This sustained reduction indicates that revenue growth has not kept pace with the expansion or valuation of net fixed assets.
- Total Asset Turnover
- The total asset turnover ratio exhibits a general contraction over the analyzed period. While the metric remained relatively stable between 0.51 and 0.62 for the majority of the timeline, a significant drop occurred in the final quarter, falling to 0.41 in March 2026. This suggests a decline in the overall productivity of the total asset base in the most recent period.
- Equity Turnover
- Equity turnover demonstrates a marked reduction in effectiveness, moving from 1.26 in March 2022 to 0.87 by March 2026. A notable acceleration in this decline occurred between September 2024 and December 2024, where the ratio dropped from 1.04 to 0.88. The subsequent period shows a stabilization in the 0.85 to 0.87 range, reflecting a lower volume of sales generated per unit of shareholder equity.
Net Fixed Asset Turnover
Abbott Laboratories, net fixed asset turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Net fixed asset turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Net property and equipment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a consistent downward trajectory over the analyzed period, declining from 5.00 in March 2022 to 3.65 by March 2026. This trend indicates a reduction in the efficiency with which the company utilizes its fixed assets to generate net sales.
- Revenue Trends
- Net sales experienced a period of contraction starting in 2022, reaching a low of 9,747 million USD in March 2023. Although a recovery phase followed, with sales increasing back toward 11,164 million USD by March 2026, the growth in revenue did not keep pace with the expansion of the asset base.
- Fixed Asset Expansion
- A steady and uninterrupted increase in net property and equipment is observed. The asset base grew from 8,908 million USD in March 2022 to 12,377 million USD by March 2026. This continuous capital investment suggests a strategic expansion of physical infrastructure regardless of the fluctuations in quarterly sales.
- Turnover Ratio Dynamics
- The most significant erosion of the turnover ratio occurred between September 2022 and December 2023, where the ratio fell from 5.18 to 3.95. This decline was driven by the simultaneous occurrence of decreasing net sales and increasing fixed asset values. Following this period, the ratio remained suppressed, fluctuating within a narrow range between 3.99 and 3.65 throughout 2024 and 2025, reflecting a persistent gap between asset growth and revenue generation.
Total Asset Turnover
Abbott Laboratories, total asset turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Total asset turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
An analysis of the financial performance from March 31, 2022, to March 31, 2026, reveals a general decline in asset utilization efficiency, characterized by a downward trend in the total asset turnover ratio.
- Net Sales Trends
- Net sales exhibited a period of volatility and gradual adjustment. After peaking at 11,895 million USD in early 2022, revenues experienced a decline, reaching a trough of 9,747 million USD by March 31, 2023. A recovery phase followed, with sales steadily climbing back to 11,459 million USD by December 31, 2025, before a slight contraction to 11,164 million USD in the final reported quarter.
- Total Asset Expansion
- The asset base remained relatively stable between 72,090 million USD and 74,438 million USD throughout 2022 and 2023. However, a growth trend emerged in 2024, with assets rising to 81,414 million USD by year-end. This growth accelerated sharply in the final period, with a significant increase to 110,429 million USD by March 31, 2026, representing a substantial expansion of the balance sheet.
- Total Asset Turnover Interpretation
- The total asset turnover ratio transitioned from a high of 0.62 in September 2022 to a low of 0.41 by March 31, 2026. For much of 2023 and 2024, the ratio remained stagnant between 0.55 and 0.56. The decline accelerated in 2025 and culminated in a sharp drop in the final quarter. This pattern indicates that the growth in total assets significantly outpaced the growth in net sales, resulting in a diminished capacity to generate revenue from the company's investment base.
The divergence between the recovering revenue stream and the rapidly expanding asset base suggests a decrease in operational efficiency regarding asset employment. The precipitous drop in the turnover ratio to 0.41 in the final quarter is directly attributable to the surge in total assets, which suggests either a major acquisition or a significant capital investment that has not yet translated into proportional sales growth.
Equity Turnover
Abbott Laboratories, equity turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Total Abbott shareholders’ investment | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q1 2026 Calculation
Equity turnover
= (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
÷ Total Abbott shareholders’ investment
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of equity turnover from March 2022 to March 2026 reveals a general decline in the efficiency with which shareholders' investment is utilized to generate net sales. While revenue demonstrated a period of contraction followed by a steady recovery, the continuous and substantial expansion of the equity base has resulted in a downward trajectory for the turnover ratio.
- Net Sales Performance
- A V-shaped trend is observed in net sales. Revenue decreased from 11,895 million USD in March 2022 to a trough of 9,747 million USD in March 2023. Following this low point, a sustained recovery occurred, with sales climbing to a peak of 11,459 million USD by December 2025, before ending the period at 11,164 million USD in March 2026.
- Shareholders' Investment Growth
- Total investment exhibited consistent growth over the analyzed period. A significant structural increase is noted in the fourth quarter of 2024, where investment rose sharply from 39,796 million USD in September to 47,664 million USD in December. This growth trend persisted through the end of the period, reaching a maximum of 52,130 million USD in September 2025 and closing at 52,061 million USD in March 2026.
- Equity Turnover Dynamics
- The equity turnover ratio declined from a high of 1.26 in early 2022 to a stabilized range of 0.85 to 0.87 by 2026. The decline occurred in three distinct stages: a gradual erosion from 1.26 to 1.04 between March 2022 and December 2023, a period of absolute stability at 1.04 throughout the first three quarters of 2024, and a sharp drop to 0.88 in December 2024. This final drop directly correlates with the abrupt increase in total shareholders' investment.
The data indicates that the growth in the company's capital base has significantly outpaced the growth in its sales capacity. The sharp reduction in the turnover ratio in late 2024 suggests a substantial infusion of capital or a significant increase in retained earnings that has not yet translated into proportional revenue growth, leading to a lower rate of return on equity investment in terms of sales volume.