Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
Abbott Laboratories, profitability ratios (quarterly data)
Based on: 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).
The profitability metrics exhibited varied trends over the observed period. Initially, a general decline in profitability was apparent, followed by a period of significant improvement, and then a subsequent return towards lower levels. Gross profit margin demonstrated relative stability, while operating and net profit margins showed more pronounced fluctuations. Return on Equity (ROE) and Return on Assets (ROA) mirrored these trends, experiencing a substantial peak before declining.
- Gross Profit Margin
- The gross profit margin generally remained within a narrow range, fluctuating between approximately 49.97% and 53.54% throughout the period. A slight upward trend is discernible in the later quarters, increasing from 50.27% in March 2024 to 52.62% in December 2025. This suggests a consistent ability to manage production costs relative to revenue.
- Operating Profit Margin
- The operating profit margin experienced a decline from 20.73% in March 2022 to a low of 15.02% in September 2022. It then recovered to 16.15% by December 2022, before stabilizing around the 16% mark through much of 2023. A further increase to 18.17% in December 2025 indicates improved operational efficiency or cost control towards the end of the period.
- Net Profit Margin
- The net profit margin followed a similar pattern to the operating margin, decreasing from 17.35% to 12.83% between March 2022 and June 2023. However, a dramatic increase occurred in December 2024, reaching 31.95%, followed by 32.43% in June 2025. This was then followed by a substantial decrease to 14.72% in December 2025, suggesting a significant, but potentially non-recurring, positive impact in late 2024 and mid-2025. This warrants further investigation.
- Return on Equity (ROE)
- ROE mirrored the trend of net profit margin, declining from 21.82% to 13.77% before surging to 28.12% in December 2024 and 27.65% in June 2025. The subsequent drop to 12.51% in December 2025 aligns with the net profit margin decline, indicating a reduced return generated for shareholders.
- Return on Assets (ROA)
- ROA exhibited a similar trajectory to ROE and net profit margin. It decreased from 10.44% to 7.04% and then increased sharply to 16.46% and 16.64% before falling to 7.52%. This suggests that the company’s ability to generate profit from its assets was significantly impacted by the events affecting net income, and that the asset base remained relatively consistent.
In summary, the observed profitability ratios indicate a period of initial decline, followed by a substantial, but apparently temporary, improvement in late 2024 and mid-2025, and a subsequent return to lower levels. The significant fluctuations in net profit margin, ROE, and ROA, particularly the dramatic increase and subsequent decrease, require further scrutiny to determine the underlying causes and assess their sustainability.
Return on Sales
Return on Investment
Gross Profit Margin
Abbott Laboratories, gross profit margin calculation (quarterly data)
| 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) | |||||||||||||||||||||
| Gross profit | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the observed period, beginning in March 2022 and extending through December 2025. Initially, the margin demonstrated relative stability before undergoing a discernible downward trend, followed by a period of stabilization and eventual improvement.
- Initial Period (Mar 31, 2022 – Jun 30, 2022)
- The gross profit margin began at 52.44% and increased to 53.54% over the first two quarters. This initial increase suggests potential benefits from pricing strategies or cost efficiencies during this timeframe.
- Downward Trend (Sep 30, 2022 – Sep 30, 2023)
- From September 2022 through September 2023, a consistent decline in the gross profit margin was observed, decreasing from 52.60% to 49.97%. This sustained decrease could be attributed to rising costs of goods sold, increased competitive pressures impacting pricing, or shifts in product mix towards lower-margin items. The lowest point in the observed period was reached in September 2023.
- Stabilization and Recovery (Dec 31, 2023 – Dec 31, 2025)
- Following the decline, the gross profit margin showed signs of stabilization, increasing from 50.28% in December 2023 to 52.62% in December 2025. This recovery indicates potential success in cost control measures, improved pricing power, or a favorable shift in product sales. The margin experienced incremental gains throughout this period, suggesting a positive trajectory.
- Recent Performance (Mar 31, 2024 – Jun 30, 2025)
- The most recent two quarters demonstrate continued improvement, with the margin increasing from 50.53% to 51.90% and then to 51.96%. This suggests that the factors contributing to the stabilization have continued to positively influence profitability.
Overall, the gross profit margin experienced a period of decline followed by a recovery. While the initial decline warrants further investigation into underlying cost structures and pricing dynamics, the subsequent stabilization and improvement suggest effective management responses and a strengthening financial position.
Operating Profit Margin
Abbott Laboratories, operating profit margin calculation (quarterly data)
| 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) | |||||||||||||||||||||
| Operating earnings | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Operating profit margin = 100
× (Operating earningsQ4 2025
+ Operating earningsQ3 2025
+ Operating earningsQ2 2025
+ Operating earningsQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited fluctuations over the observed period, beginning in March 2022 and extending through December 2025. An initial period of relative stability was followed by a noticeable decline and subsequent recovery.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin commenced at 20.73% in March 2022, increased to a peak of 22.42% in June 2022, and then gradually decreased to 19.16% by December 2022. This suggests a period of initial strength followed by a moderate contraction in profitability during the latter half of the year.
- Decline and Stabilization (Mar 31, 2023 – Sep 30, 2023)
- A more significant decline was observed through the first three quarters of 2023, with the operating profit margin falling from 16.77% in March to 15.02% in September. This represents a substantial decrease in profitability. However, a slight recovery occurred in December 2023, reaching 16.15%.
- Recovery and Growth (Mar 31, 2024 – Dec 31, 2025)
- From March 2024 onwards, the operating profit margin demonstrated a consistent upward trend. It increased from 15.76% to 18.17% by December 2025. This indicates a successful recovery and improvement in operational efficiency or pricing power. The margin reached its highest point in the observed period at 18.17% in December 2025.
- Overall Trend
- The overall trend reveals a cyclical pattern. The initial decline in 2022 and the more pronounced drop in the first half of 2023 were followed by a sustained period of recovery and growth. The operating profit margin ultimately concluded at a higher level than it began, suggesting improved performance towards the end of the analyzed timeframe.
The fluctuations in operating profit margin likely reflect changes in cost of goods sold, operating expenses, or pricing strategies. Further investigation into these underlying factors would be necessary to fully understand the drivers of these observed trends.
Net Profit Margin
Abbott Laboratories, net profit margin calculation (quarterly data)
| 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 earnings | |||||||||||||||||||||
| Net sales | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
Net profit margin = 100
× (Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025
+ Net earningsQ1 2025)
÷ (Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025
+ Net salesQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial period of relative stability was followed by a significant increase, then a return towards earlier levels.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin began at 17.35% in March 2022, increased to 18.78% in June 2022, and then decreased to 15.88% by December 2022. This suggests a moderate level of profitability with some quarterly variability during this timeframe.
- Downward Trend (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, a consistent downward trend in the net profit margin was observed. Starting at 13.98% in March 2023, it declined to 14.27% in December 2023, with values ranging between 12.83% and 14.27% during this period. This indicates increasing pressure on profitability.
- Significant Increase (Mar 31, 2024 – Dec 31, 2024)
- A substantial increase in the net profit margin occurred between March 2024 and December 2024. The margin rose from 13.96% to a peak of 31.95% in December 2024. This dramatic improvement suggests a significant positive change in the company’s cost structure or revenue generation during this period. The December 2024 value is a notable outlier compared to prior periods.
- Subsequent Adjustment (Mar 31, 2025 – Dec 31, 2025)
- Following the peak in December 2024, the net profit margin decreased to 31.89% in March 2025, 31.88% in September 2025, and finally to 14.72% in December 2025. This suggests that the factors driving the exceptional profitability in late 2024 were not sustained, and the margin reverted towards levels observed in the earlier part of the analyzed period.
Overall, the net profit margin demonstrated considerable volatility. While a general decline was evident through much of 2023, the final quarters of 2024 and the beginning of 2025 showed a large, but ultimately temporary, surge in profitability. The return to a lower margin in the latter part of 2025 warrants further investigation to understand the underlying causes of these fluctuations.
Return on Equity (ROE)
Abbott Laboratories, ROE calculation (quarterly data)
| 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 earnings | |||||||||||||||||||||
| Total Abbott shareholders’ investment | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
ROE = 100
× (Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025
+ Net earningsQ1 2025)
÷ Total Abbott shareholders’ investment
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial period of relative stability was followed by a significant increase and subsequent decline.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- ROE began at 21.82% in March 2022, increasing to a peak of 23.44% in June 2022 before decreasing to 18.90% by December 2022. This suggests a period of initial strength followed by a moderate contraction in profitability relative to shareholder equity.
- Subsequent Decline (Mar 31, 2023 – Dec 31, 2023)
- A continued downward trend was observed through the first three quarters of 2023, with ROE falling from 15.68% in March to 13.77% in September. A slight recovery occurred in December 2023, reaching 14.83%. This period indicates a sustained weakening in returns to shareholders.
- Significant Increase (Mar 31, 2024 – Dec 31, 2024)
- A substantial increase in ROE occurred between March 2024 and December 2024, culminating in a value of 28.12%. This represents a significant improvement in profitability relative to equity, potentially driven by increased net earnings and/or changes in shareholder investment. The December 2024 value is the highest observed throughout the entire period.
- Final Decline (Mar 31, 2025 – Dec 31, 2025)
- Following the peak in December 2024, ROE experienced a sharp decline, falling to 12.51% by December 2025. This represents a substantial reversal of the gains observed in the prior quarter and suggests a significant decrease in profitability relative to shareholder equity. The values for the quarters in 2025 remained relatively stable between 27.43% and 27.66% before the final decline.
Net earnings and total shareholder investment both increased over the period, but the fluctuations in ROE suggest that the relationship between these two variables is not linear and that other factors are influencing profitability. The dramatic increase in ROE in December 2024, followed by a steep decline, warrants further investigation to understand the underlying drivers of these changes.
Return on Assets (ROA)
Abbott Laboratories, ROA calculation (quarterly data)
| 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 earnings | |||||||||||||||||||||
| Total assets | |||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | |||||||||||||||||||||
| Intuitive Surgical Inc. | |||||||||||||||||||||
| Medtronic PLC | |||||||||||||||||||||
| UnitedHealth Group Inc. | |||||||||||||||||||||
Based on: 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 Q4 2025 Calculation
ROA = 100
× (Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025
+ Net earningsQ1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited fluctuating performance over the analyzed period, spanning from March 31, 2022, to December 31, 2025. Initial values demonstrated a relatively strong performance, followed by a period of decline, a subsequent surge, and a final decrease.
- Initial Performance (Mar 31, 2022 – Dec 31, 2022)
- The ROA began at 10.44% in March 2022, peaking at 11.53% in June 2022 before experiencing a gradual decline to 9.31% by December 2022. This initial period suggests a moderate level of profitability relative to the asset base, with a slight weakening trend towards the end of the year.
- Declining Trend (Mar 31, 2023 – Dec 31, 2023)
- A continued downward trend was observed through the first three quarters of 2023, with the ROA falling to a low of 7.04% in June 2023. A modest recovery occurred in the fourth quarter, bringing the ROA to 7.82% by December 2023. This period indicates a consistent reduction in the efficiency of asset utilization in generating earnings.
- Significant Increase (Mar 31, 2024 – Sep 30, 2025)
- The ROA experienced a substantial increase beginning in March 2024, reaching a peak of 16.64% in June 2025. This surge coincided with a significant increase in net earnings and total assets. The ROA remained elevated through September 2025, at 16.60%. This period represents a marked improvement in profitability and asset efficiency.
- Final Decline (Dec 31, 2025)
- A notable decrease in ROA was observed in December 2025, falling to 7.52%. This decline occurred despite an increase in total assets, suggesting a substantial decrease in net earnings during this period. This represents a significant shift from the preceding period of strong performance.
- Net Earnings and Total Assets Correlation
- The fluctuations in ROA generally correlate with changes in net earnings. Periods of higher net earnings, such as those observed in the first half of 2024 and 2025, correspond with higher ROA values. Conversely, periods of lower net earnings, like those in late 2022 and early 2023, are associated with lower ROA values. Total asset values also play a role, with the most dramatic ROA increase coinciding with a substantial increase in total assets in late 2024.
Overall, the ROA demonstrates considerable volatility throughout the analyzed timeframe. While periods of strong performance were evident, the final quarter of 2025 indicates a potential shift in the company’s profitability relative to its asset base, warranting further investigation.