Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Abbott Laboratories, profitability 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).
The analysis of profitability ratios indicates a period of contraction followed by a significant, non-linear surge in bottom-line performance, ultimately returning to normalized levels. While gross margins remained relatively stable, operating and net profitability experienced higher volatility, with a distinct anomaly occurring between late 2023 and late 2025.
- Gross Profit Margin
- A consistent range is maintained between 49.97% and 53.54%. A gradual decline was observed from June 2022, reaching a trough of 49.97% in September 2023. Subsequently, a steady recovery trend ensued, with the margin returning to 52.53% by March 2026, suggesting a stable capacity to manage direct costs of goods sold over the long term.
- Operating Profit Margin
- Operating efficiency showed a more pronounced decline than gross profitability. From a peak of 22.42% in June 2022, the margin compressed to 15.02% by September 2023. A slow but steady recovery followed, peaking at 18.17% in December 2025, before settling at 17.07% in March 2026. This divergence from gross margin trends indicates fluctuations in operating expenses during this period.
- Net Profit Margin
- The net profit margin exhibits an extraordinary deviation from historical patterns. Following a decline to 12.83% in June 2023, the ratio abruptly jumped to 31.95% in December 2023 and remained elevated above 31% through September 2025. This sharp increase is not mirrored in the operating profit margin, suggesting the influence of significant non-operating income or one-time tax benefits. By December 2025, the margin reverted to 14.72%, normalizing by March 2026 at 13.91%.
- Return on Equity (ROE) and Return on Assets (ROA)
- Both ROE and ROA closely track the movements of the net profit margin. ROE declined from 23.44% in June 2022 to a low of 13.77% in September 2023, before surging to approximately 28% between December 2023 and September 2025. Similarly, ROA dropped from 11.53% to 7.04% in June 2023, then spiked to approximately 16.6% during the same 2024-2025 window. Both metrics saw a sharp correction starting in December 2025, with ROE falling to 12.06% and ROA to 5.68% by March 2026, indicating a significant reduction in the efficiency of asset and equity utilization compared to the anomalous peak.
Return on Sales
Return on Investment
Gross Profit Margin
Abbott Laboratories, gross profit margin 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) | |||||||||||||||||||||||
| 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-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
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance from March 2022 to March 2026 is characterized by a distinct U-shaped trajectory in profitability, featuring an initial period of contraction followed by a sustained recovery and eventual stabilization.
- Gross Profit Margin Analysis
- A downward trend in the gross profit margin is observed starting after June 2022, when the ratio peaked at 53.54%. This decline continued for several quarters, reaching a minimum of 49.97% in September 2023. Subsequent to this low point, a consistent recovery phase occurred, with the margin expanding steadily to reach 52.62% by December 2025. The period concluded with the margin maintaining a stable level of 52.53% in March 2026.
- Net Sales Trajectory
- Net sales experienced a significant contraction in the first half of the analyzed period, falling from $11,895 million in March 2022 to a trough of $9,747 million in March 2023. A recovery trend followed this decline, with sales increasing progressively to a peak of $11,459 million by December 2025, before experiencing a slight moderation to $11,164 million in March 2026.
- Gross Profit Correlation
- Absolute gross profit closely mirrored the movements of both net sales and the profit margin. After a decline from $6,396 million in March 2022 to a low of $4,925 million in March 2023, gross profit entered a growth phase. This growth culminated in a value of $6,115 million in December 2025. The simultaneous increase in both net sales and gross profit margin during the 2024-2025 period indicates an improvement in operational efficiency and cost management relative to revenue generation.
Operating Profit Margin
Abbott Laboratories, operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| 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-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
Operating profit margin = 100
× (Operating earningsQ1 2026
+ Operating earningsQ4 2025
+ Operating earningsQ3 2025
+ Operating earningsQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of operating profitability reveals a cyclical pattern characterized by an initial sharp contraction, a prolonged period of recovery, and a recent marginal decline. This volatility reflects fluctuations in both the scale of net sales and the efficiency of operating cost management over the observed period.
- Revenue and Earnings Correlation
- Net sales exhibited a downward trajectory from March 2022, falling from 11,895 million to a trough of 9,747 million in March 2023. Following this period, sales entered a steady growth phase, reaching a peak of 11,459 million in December 2025 before a slight correction to 11,164 million in March 2026. Operating earnings followed a similar, though more volatile, pattern, dropping significantly from 2,912 million in March 2022 to 1,304 million in December 2022.
- Operating Profit Margin Contraction
- A significant erosion of profitability is observed between June 2022 and September 2023. The operating profit margin peaked at 22.42% in June 2022 but declined steadily to a minimum of 15.02% by September 2023. This contraction occurred despite the stabilization of net sales during the latter half of 2023, suggesting that operating expenses grew at a faster rate than revenue during this window.
- Profitability Recovery Phase
- Beginning in the fourth quarter of 2023, a consistent upward trend in the operating profit margin was established. The margin rose from 16.15% in December 2023 to 18.17% by December 2025. This recovery was driven by a synchronized increase in both net sales and operating earnings, indicating improved operational leverage and cost optimization.
- Recent Performance Shift
- The period ending March 31, 2026, shows a reversal of the recovery trend. While net sales remained relatively robust at 11,164 million, operating earnings experienced a sharp decline to 1,345 million. This resulted in a compression of the operating profit margin to 17.07%, marking the first significant margin drop in over two years.
Net Profit Margin
Abbott Laboratories, net profit margin 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 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-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 profit margin = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance from March 2022 through March 2026 is characterized by an initial period of margin contraction, a significant period of anomalous profitability, and a subsequent return to historical baseline levels.
- Net Profit Margin Trends
- Between March 2022 and June 2023, the net profit margin exhibited a downward trend, decreasing from 17.35% to a low of 12.83%. This contraction was followed by a period of relative stabilization throughout the remainder of 2023 and the first half of 2024, where margins fluctuated within a narrow band between 13.65% and 14.27%.
- A sharp and atypical increase in profitability is observed beginning in December 2024, with the net profit margin jumping to 31.95%. This elevated level of profitability persisted through September 2025, peaking at 32.43% in June 2025. This represents a significant deviation from the standard operating margin, suggesting the influence of non-recurring gains or extraordinary accounting adjustments.
- A reversion to the mean occurred in December 2025, as the margin dropped back to 14.72%, eventually settling at 13.91% by March 2026, aligning with the pre-anomaly performance levels seen in 2023 and 2024.
- Revenue and Earnings Dynamics
- Net sales showed a gradual decline from March 2022 (11,895 million US$) to a trough in March 2023 (9,747 million US$). Following this low point, a consistent recovery trend is evident, with sales steadily climbing to a peak of 11,459 million US$ by December 2025 before a slight dip in March 2026.
- Net earnings remained largely correlated with sales trends until December 2024, where an extreme spike to 9,229 million US$ occurred. This surge in earnings, while sales grew only marginally during the same period, confirms that the spike in net profit margin was driven by a one-time financial event rather than organic operational growth.
- Following the spike, earnings remained moderately higher than 2022-2023 levels during the first three quarters of 2025 before returning to a range of 1,077 to 1,776 million US$ in the final periods analyzed.
Return on Equity (ROE)
Abbott Laboratories, ROE 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 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-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
ROE = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ Total Abbott shareholders’ investment
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the observed period demonstrates notable volatility in profitability metrics, specifically regarding the return on equity (ROE). While the capital base has expanded consistently, net earnings have exhibited irregular patterns, leading to distinct phases of ROE fluctuation.
- Return on Equity (ROE) Trajectory
- A cyclical pattern is observed in ROE performance. The period began with relatively high returns, peaking at 23.44% in June 2022. This was followed by a sustained decline throughout 2023 and the first half of 2024, where ROE stabilized between 13.77% and 15.68%. A sharp increase occurred in late 2024, reaching a peak of 28.12% in December 2024 and maintaining levels above 27% through September 2025, before retreating to 12.06% by March 2026.
- Impact of Net Earnings
- The fluctuations in ROE are primarily driven by volatility in net earnings. A significant anomaly occurred on December 31, 2024, where net earnings spiked to 9,229 million US$, a substantial increase compared to the typical quarterly earnings range of 1,033 million to 2,447 million US$. This earnings surge directly correlates with the surge in ROE observed during the final quarter of 2024 and the subsequent quarters of 2025.
- Shareholders' Investment Expansion
- Total shareholders' investment shows a consistent upward trend, growing from 35,399 million US$ in March 2022 to 52,061 million US$ by March 2026. A notable increase in equity was recorded between September 2024 and December 2024, where the investment base rose from 39,796 million US$ to 47,664 million US$. The continuous growth of the investment base creates a larger denominator for the ROE calculation, which tends to compress the ratio unless earnings grow at a proportionally higher rate.
Return on Assets (ROA)
Abbott Laboratories, ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net earnings | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net earningsQ1 2026
+ Net earningsQ4 2025
+ Net earningsQ3 2025
+ Net earningsQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of profitability indicates a volatile trajectory for the Return on Assets (ROA), characterized by an initial period of decline, a temporary surge driven by an earnings anomaly, and a subsequent sharp contraction linked to asset expansion.
- ROA Performance Trends
- Between March 2022 and December 2023, ROA experienced a general downward trend, moving from a peak of 11.53% in June 2022 to a stabilization range between 7.04% and 7.87%. A period of exceptional performance occurred between December 2024 and September 2025, during which ROA remained consistently elevated, peaking at 16.64%. This trend reversed sharply in the most recent quarters, with ROA falling to 7.52% in December 2025 and reaching a period low of 5.68% by March 2026.
- Net Earnings Volatility
- Net earnings remained relatively stable, generally fluctuating between $1 billion and $2.5 billion for the majority of the observed period. A significant outlier occurred in December 2024, where earnings spiked to $9,229 million. This extraordinary increase was the primary catalyst for the surge in ROA observed through September 2025. Following this spike, earnings returned to normalized levels, ending at $1,077 million in March 2026.
- Asset Base Expansion and Efficiency
- Total assets remained stable, ranging from $72 billion to $74 billion, from March 2022 through September 2024. An upward trend in asset accumulation began in December 2024, with the base increasing to $86.7 billion by December 2025. A substantial increase was recorded in March 2026, with total assets rising to $110.4 billion. The coincidence of this rapid asset growth and the return to normalized net earnings resulted in a significant reduction in asset utilization efficiency, as evidenced by the decline in ROA to 5.68%.