Analysis of Reportable Segments
Abbott Laboratories operates in 4 segments: Established Pharmaceutical Products; Nutritional Products; Diagnostic Products; and Medical Devices.
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- Return on Equity (ROE) since 2005
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Segment Profit Margin
Abbott Laboratories, profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The profit margin data over the five-year period reveals distinct trends across the four reportable segments.
- Established Pharmaceutical Products
- The profit margin demonstrates a consistent upward trajectory from 18.45% in 2020 to a peak of 23.81% in 2023, followed by a marginal decline to 23.74% in 2024. This indicates an overall strengthening in profitability within this segment, suggesting improved operational efficiency or favorable market conditions.
- Nutritional Products
- The profit margin exhibits volatility, starting at 22.9% in 2020 and slightly decreasing to 21.26% in 2021. A significant drop occurs in 2022, falling sharply to 9.47%. Subsequently, there is a recovery to 16.35% in 2023 and a further increase to 17.89% in 2024. This pattern suggests that the segment faced substantial challenges in 2022, possibly due to cost pressures or competitive dynamics, but began to regain profitability in the following years.
- Diagnostic Products
- The segment shows strong profitability early on, increasing from 34.47% in 2020 to a peak of 40.2% in 2022. However, there is a notable decline in 2023 to 24.36%, continuing downward to 22.19% in 2024. This decline may indicate emerging difficulties such as increased expenses, market saturation, or external factors adversely affecting margins in recent years.
- Medical Devices
- The profit margin remains relatively stable with an upward tendency, starting at 25.77% in 2020, rising to 31.42% in 2021, and experiencing slight fluctuations with 30.02% in 2022, returning to 31.42% in 2023, and increasing further to 32.41% in 2024. This stability alongside gradual improvement points to steady operational performance and possibly successful strategies in managing costs or enhancing sales in this segment.
Overall, the data illustrates heterogeneous performance patterns among the segments. While Established Pharmaceutical Products and Medical Devices segments show steady or improving margins, Nutritional Products display volatility with recovery signs, and Diagnostic Products reveal a peak followed by a substantial margin contraction, highlighting potential areas requiring focused management attention.
Segment Profit Margin: Established Pharmaceutical Products
Abbott Laboratories; Established Pharmaceutical Products; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × ÷ =
- Operating Earnings
- The operating earnings of the segment demonstrated a consistent upward trend over the five-year period. Starting at $794 million in 2020, operating earnings increased steadily each year, reaching $1,233 million by 2024. This reflects a cumulative growth of approximately 55% over the period, indicating improved profitability and operational efficiency.
- Net Sales
- Net sales also showed progressive growth, rising from $4,303 million in 2020 to $5,194 million in 2024. The increases each year, while positive, were relatively moderate, averaging around 5% growth annually. This gradual rise suggests steady market demand and sales expansion within the segment.
- Segment Profit Margin
- The segment profit margin exhibited a notable upward trajectory. Beginning at 18.45% in 2020, the margin increased each year, peaking at 23.81% in 2023, before a marginal decline to 23.74% in 2024. This improvement indicates enhanced cost management or pricing strategies, allowing the segment to retain a higher portion of sales as profit.
- Overall Insights
- The data portrays a segment experiencing healthy growth both in absolute earnings and sales volume. The operating earnings grew at a faster rate relative to net sales, which contributed to the expansion of profit margins. The stabilization of the profit margin just below 24% in the last two years suggests that the segment may have reached a mature phase of profitability while maintaining strong operational performance.
Segment Profit Margin: Nutritional Products
Abbott Laboratories; Nutritional Products; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × ÷ =
The analysis of the annual data for the “Nutritional Products” segment reveals several notable trends in financial performance over the five-year period from 2020 to 2024.
- Net Sales
- Net sales exhibited a fluctuating but generally positive trend. Beginning at $7,647 million in 2020, sales increased to $8,294 million in 2021, followed by a decline to $7,459 million in 2022. In the subsequent years, net sales rebounded steadily, reaching $8,154 million in 2023 and $8,413 million in 2024. This pattern indicates resilience and recovery after a dip in 2022, with sales in 2024 surpassing the initial 2020 figure.
- Operating Earnings
- Operating earnings showed a more volatile pattern compared to net sales. The segment started with earnings of $1,751 million in 2020, slightly increasing to $1,763 million in 2021. However, there was a sharp decline in 2022, with earnings more than halving to $706 million. This was followed by a substantial recovery to $1,333 million in 2023, and a further increase to $1,505 million in 2024. Despite the recovery, operating earnings in 2024 remained below the levels reported in 2020 and 2021.
- Segment Profit Margin
- The segment profit margin closely reflected the movements of operating earnings relative to net sales. Initially high at 22.9% in 2020, the margin decreased to 21.26% in 2021. This was followed by a pronounced drop to 9.47% in 2022, corresponding with the decline in operating earnings. The margin improved to 16.35% in 2023 and 17.89% in 2024, indicating an improvement in profitability, yet still below the margin levels of the early period.
Overall, the segment experienced a significant disruption in 2022, characterized by declines in net sales, operating earnings, and profit margin. The recovery in 2023 and 2024 signals operational resilience and improved profitability, although not reaching the performance of the initial years. These trends suggest that while the segment faced challenges, management’s actions likely helped to stabilize and enhance financial outcomes in the latter years.
Segment Profit Margin: Diagnostic Products
Abbott Laboratories; Diagnostic Products; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × ÷ =
The financial performance of the Diagnostic Products segment over the five-year period exhibits notable fluctuations in key metrics including operating earnings, net sales, and segment profit margin.
- Operating Earnings
- Operating earnings increased significantly from US$3,725 million in 2020 to a peak of US$6,667 million in 2022. However, there was a sharp decline thereafter, with earnings falling to US$2,433 million in 2023 and further decreasing to US$2,073 million in 2024. This indicates a reversal of the previous growth trend and suggests challenges faced in the most recent years.
- Net Sales
- Net sales followed a similar upward trajectory initially, rising from US$10,805 million in 2020 to US$16,584 million in 2022. This growth was followed by a marked decline to US$9,988 million in 2023 and slightly lower at US$9,341 million in 2024. The decline in sales aligns with the reduced operating earnings, suggesting a contraction in market demand or competitive pressures affecting revenue generation.
- Segment Profit Margin
- The segment profit margin exhibited strong improvement from 34.47% in 2020 to over 40% in 2022, indicating enhanced profitability and cost management during this period. Despite this, the margin sharply contracted to 24.36% in 2023 and decreased further to 22.19% in 2024, reflecting decreased operational efficiency or increased expenses relative to sales in recent years.
Overall, the data reveals a period of robust growth and profitability up to 2022, followed by a significant downturn in both sales and earnings. The deteriorating profit margin post-2022 underscores challenges that may include heightened competition, cost pressures, or changes in market dynamics impacting the Diagnostic Products segment's financial performance.
Segment Profit Margin: Medical Devices
Abbott Laboratories; Medical Devices; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Net sales | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × ÷ =
- Operating Earnings
- Operating earnings demonstrate a consistent upward trajectory from 2020 through 2024. Beginning at 3,038 million US dollars in 2020, there was a notable increase in 2021 to 4,514 million. Although 2022 showed a slight decline to 4,409 million, the segment resumed growth in 2023 reaching 5,306 million and further advanced to 6,153 million by 2024. This overall progression indicates strong earnings growth with a minor dip in 2022.
- Net Sales
- Net sales similarly exhibit a steady growth pattern over the given period. Starting at 11,787 million US dollars in 2020, sales rose to 14,367 million in 2021, marginally increasing to 14,687 million in 2022. After 2022, net sales accelerated more significantly, reaching 16,887 million in 2023 and continuing to 18,986 million in 2024. This reflects sustained market expansion or enhanced sales efforts with accelerating growth post-2022.
- Segment Profit Margin
- The segment profit margin maintains a generally favorable trend. From 25.77% in 2020, it increased markedly to 31.42% in 2021. There was a slight decrease to 30.02% in 2022, followed by a return to 31.42% in 2023 and a further increase to 32.41% in 2024. The margin's upward movement after 2021 indicates improved operational efficiency or cost management, contributing positively to profitability.
- Overall Insights
- The Medical Devices segment has demonstrated strong financial performance over the five-year period. Despite minor fluctuations in 2022, both operating earnings and net sales show robust growth. The profit margin improvements, notably rising above 30% after 2020, reinforce the segment's increasing efficiency and profitability. The year 2022 appears as a temporary plateau for earnings and margin but does not diminish the positive overall trend observed from 2020 to 2024.
Segment Return on Assets (Segment ROA)
Abbott Laboratories, ROA by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Established Pharmaceutical Products
- The return on assets (ROA) for this segment reveals a consistent upward trend over the five-year period. Starting at 27.49% in 2020, the ROA increased steadily each year, reaching 39.94% by the end of 2024. This consistent improvement indicates enhanced profitability or asset efficiency in this segment.
- Nutritional Products
- This segment's ROA showed relatively high values initially, with 50.35% in 2020 and a slight increase to 51.47% in 2021. However, in 2022, there was a significant decline to 19.48%, followed by a partial recovery to 31.22% in 2023 and further improvement to 34.17% in 2024. The sharp drop in 2022 suggests challenges encountered that year, but the subsequent positive trend indicates recovery efforts have been effective.
- Diagnostic Products
- The diagnostic products segment experienced notable volatility. From 48.4% in 2020, ROA increased markedly to 81.26% in 2021 and then slightly to 83.49% in 2022. This peak was followed by a dramatic reduction to 31.32% in 2023, with a further decline to 27% in 2024. These fluctuations suggest periods of exceptional performance followed by substantial setbacks within the last two years.
- Medical Devices
- The medical devices segment demonstrated consistent positive growth in ROA throughout the period. Starting at 44.07% in 2020, the ROA rose to 62.17% in 2021, decreased moderately to 56.21% in 2022, and then increased again to 58.77% in 2023. By 2024, the segment reached its highest ROA at 64.96%. Despite a minor setback in 2022, overall performance illustrates steady improvement.
Segment ROA: Established Pharmaceutical Products
Abbott Laboratories; Established Pharmaceutical Products; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating earnings ÷ Total assets
= 100 × ÷ =
- Operating Earnings
- Operating earnings exhibited a steady increase over the five-year period. Starting from US$794 million in 2020, earnings grew to US$1,233 million by 2024. The most significant annual increase occurred between 2021 and 2022, with a rise of US$160 million. Growth continued consistently thereafter, indicating strong financial performance in the segment.
- Total Assets
- Total assets showed some fluctuation but remained relatively stable overall. The value decreased slightly from US$2,888 million in 2020 to US$2,789 million in 2021, followed by a modest increase to US$3,118 million in 2023 before declining marginally to US$3,087 million in 2024. This suggests that asset base adjustments were made but without substantial expansion or contraction.
- Segment Return on Assets (ROA)
- The segment ROA demonstrated a consistent upward trend across the period. Starting at 27.49% in 2020, it increased steadily year-over-year, reaching 39.94% in 2024. This reflects improving efficiency in using assets to generate operating earnings, implying enhanced profitability and operational management.
Segment ROA: Nutritional Products
Abbott Laboratories; Nutritional Products; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating earnings ÷ Total assets
= 100 × ÷ =
- Operating Earnings
- Operating earnings experienced fluctuation over the five-year period. Starting at $1,751 million in 2020, earnings remained relatively stable into 2021 with a slight increase to $1,763 million. However, there was a significant decline in 2022, dropping sharply to $706 million. This downward trend reversed in the following years, with earnings recovering to $1,333 million in 2023 and continuing to increase to $1,505 million in 2024. Overall, the earnings showed volatility but a positive recovery trend in the last two years.
- Total Assets
- Total assets exhibited a steady upward trajectory throughout the period. Beginning at $3,478 million in 2020, assets slightly decreased in 2021 to $3,425 million but rebounded in 2022 to $3,625 million. From 2022 onward, total assets consistently increased, reaching $4,270 million in 2023 and $4,404 million in 2024. The overall pattern suggests a growth in asset base despite a minor dip in 2021.
- Segment Return on Assets (ROA)
- Segment ROA, a measure of profitability relative to assets, showed a declining trend initially. It was strong in 2020 at 50.35%, slightly increasing to 51.47% in 2021, indicating high efficiency in asset utilization during that period. However, ROA dropped significantly to 19.48% in 2022, consistent with the steep decline in operating earnings. In subsequent years, ROA improved to 31.22% in 2023 and further to 34.17% in 2024, showing a partial recovery yet remaining substantially below the levels seen in 2020 and 2021.
- Summary Insights
- The data reveals a period of earnings and profitability volatility within the segment, particularly marked by a steep decline in 2022 followed by gradual recovery through 2024. Despite these fluctuations, the asset base demonstrated a general expansion, suggesting continued investment or growth initiatives. The divergence between strong asset growth and weakened profitability in 2022 points to potential operational or market challenges during that year. The partial recovery in both operating earnings and ROA after 2022 indicates an improvement in asset efficiency and segment performance in recent years, though profitability has not yet returned to the initial peak levels observed in 2020 and 2021.
Segment ROA: Diagnostic Products
Abbott Laboratories; Diagnostic Products; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating earnings ÷ Total assets
= 100 × ÷ =
The annual data for the Diagnostic Products segment reveals several notable trends over the five-year period from 2020 to 2024.
- Operating Earnings
- Operating earnings demonstrated significant growth from 2020 to 2022, increasing from $3,725 million to a peak of $6,667 million. However, there was a considerable decline beginning in 2023, with earnings dropping sharply to $2,433 million and further declining to $2,073 million in 2024. This indicates a considerable reversal in profitability after 2022.
- Total Assets
- Total assets exhibited relative stability across the entire period. Beginning at $7,696 million in 2020, assets showed a slight increase to $7,985 million in 2022, before tapering down modestly to $7,678 million by 2024. This suggests that asset base management remained largely consistent, with no major expansions or contractions.
- Segment Return on Assets (ROA)
- The segment ROA mirrored the trend in operating earnings with a substantial rise from 48.4% in 2020 to an impressive 83.49% in 2022. Post-2022, the ROA experienced a marked decline, falling to 31.32% in 2023 and further to 27% in 2024. This decline corresponds with reduced profitability despite stable asset levels, indicating decreased efficiency or profitability of asset utilization in the latter years.
Overall, the segment showed robust growth in earnings and asset efficiency through 2022, followed by a sharp downturn in both financial performance and profitability ratios in 2023 and 2024, while asset levels remained relatively unchanged. This pattern highlights a period of peak performance succeeded by challenges affecting earnings generation and return on assets.
Segment ROA: Medical Devices
Abbott Laboratories; Medical Devices; segment ROA calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment ROA = 100 × Operating earnings ÷ Total assets
= 100 × ÷ =
- Operating Earnings
- Operating earnings showed an overall upward trend from 2020 to 2024. Starting at 3,038 million US dollars in 2020, earnings increased substantially to 4,514 million in 2021, followed by a slight decline to 4,409 million in 2022. After this minor dip, earnings rose again to 5,306 million in 2023 and further improved to 6,153 million in 2024. This progression indicates strong earnings growth over the five-year period with only a modest interruption in 2022.
- Total Assets
- Total assets increased steadily during the same timeframe. Beginning at 6,893 million US dollars in 2020, assets expanded to 7,261 million in 2021 and continued to grow to 7,844 million in 2022. The growth accelerated notably in the following years, reaching 9,029 million in 2023 and 9,472 million in 2024. This consistent asset growth suggests ongoing investment and expansion within the segment.
- Segment Return on Assets (ROA)
- Segment ROA exhibited fluctuation but maintained a generally increasing trend over the five years. The metric started at 44.07% in 2020 and rose sharply to 62.17% in 2021. A decrease followed in 2022, bringing the ROA down to 56.21%, but it improved again to 58.77% in 2023 and reached its highest level of 64.96% in 2024. These figures reflect overall increasing efficiency in generating operating earnings relative to assets, despite some variability.
- Summary
- The data demonstrates robust growth in operating earnings alongside a steady increase in total assets, indicating ongoing expansion and investment. Despite some fluctuations in segment ROA, the overall trend points to improving asset utilization and operational efficiency. The decline in both operating earnings and ROA in 2022 may suggest temporary operational challenges, but the recovery in subsequent years highlights resilience and positive momentum within the segment.
Segment Asset Turnover
Abbott Laboratories, asset turnover by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Established Pharmaceutical Products
- The asset turnover ratio for Established Pharmaceutical Products showed a moderate upward trend between 2020 and 2022, increasing from 1.49 to 1.7. However, a slight decline occurred in 2023 to 1.62, followed by a recovery to 1.68 in 2024, suggesting overall stability with minor fluctuations in efficiency.
- Nutritional Products
- There was an initial increase in asset turnover from 2.2 in 2020 to a peak of 2.42 in 2021. Subsequently, the ratio decreased significantly over the next two years, stabilizing at 1.91 in both 2023 and 2024. This indicates a reduction in asset utilization efficiency in recent years relative to earlier performance.
- Diagnostic Products
- This segment experienced strong growth in asset turnover from 1.4 in 2020 to 2.08 in 2022. Afterward, a notable decline took place, with ratios dropping to 1.29 in 2023 and further to 1.22 in 2024. The data suggests the segment faced challenges in maintaining its asset efficiency after peaking in 2022.
- Medical Devices
- The asset turnover ratio for Medical Devices displayed consistent improvement from 1.71 in 2020 to 1.98 in 2021, followed by a slight dip in 2022 to 1.87. The ratio remained stable in 2023 and improved again in 2024 to 2.0, indicating a generally positive trend in asset utilization within this segment.
Segment Asset Turnover: Established Pharmaceutical Products
Abbott Laboratories; Established Pharmaceutical Products; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The annual data for the Established Pharmaceutical Products segment indicates steady growth and stable asset utilization over the analyzed five-year period.
- Net Sales
- Net sales have shown a consistent upward trend from 4,303 million US dollars in 2020 to 5,194 million US dollars in 2024. This represents an overall increase of approximately 20.7% across the five years, reflecting ongoing demand growth or successful market penetration within this segment.
- Total Assets
- Total assets exhibit minor fluctuations with a slight overall increase from 2,888 million US dollars in 2020 to 3,087 million US dollars in 2024. The assets decreased somewhat in 2021 but recovered in subsequent years, peaking at 3,118 million US dollars in 2023 before a small decline in 2024. This pattern suggests moderate investment and asset management activities consistent with operational needs over the period.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset use in generating sales, improved from 1.49 in 2020 to a peak of 1.7 in 2022. Although there was a slight decrease to 1.62 in 2023, it rebounded to 1.68 in 2024. These figures indicate sustained efficient use of assets in producing sales, with some minor variability likely reflecting operational adjustments or market conditions.
Overall, the segment demonstrates solid sales growth coupled with steady asset levels and consistently effective asset utilization. This suggests a well-managed balance between expanding sales and controlling asset investment to optimize operational performance.
Segment Asset Turnover: Nutritional Products
Abbott Laboratories; Nutritional Products; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The analysis of the Nutritional Products segment over the five-year period reveals several notable trends in sales, total assets, and asset turnover ratio.
- Net Sales
- Net sales demonstrated variability with an overall upward trajectory. Starting at 7,647 million US dollars in 2020, sales increased to 8,294 million in 2021. This was followed by a decline to 7,459 million in 2022, before recovering to 8,154 million in 2023 and reaching 8,413 million in 2024. The fluctuations suggest some market or operational challenges in 2022, but a recovery phase is evident thereafter.
- Total Assets
- Total assets showed a consistent increasing trend throughout the period. The segment's assets grew from 3,478 million US dollars in 2020 to 4,404 million in 2024. This steady increase indicates ongoing investment in the segment, possibly reflecting capital expenditures or asset acquisition to support growth or operational capacity.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures the efficiency of asset utilization in generating sales, declined over the period. Starting at 2.2 in 2020, it climbed slightly to 2.42 in 2021 but then dropped progressively to 2.06 in 2022 and further to 1.91 in both 2023 and 2024. This declining ratio, coupled with increasing assets, suggests that the segment is generating lower sales per unit of asset over time, indicating reduced efficiency or changes in asset structure.
In summary, while net sales experienced some volatility, they maintained an overall upward trend by the end of the period. Concurrently, asset growth outpaced sales growth, leading to a decrease in asset turnover ratio. This combination may imply that the segment is investing heavily in assets ahead of sales growth or facing challenges in maximizing asset productivity during this timeframe.
Segment Asset Turnover: Diagnostic Products
Abbott Laboratories; Diagnostic Products; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The net sales of the segment exhibited a significant increase from 2020 through 2022, rising from 10,805 million US dollars in 2020 to a peak of 16,584 million US dollars in 2022. However, there was a notable decline in the following years, with sales dropping to 9,988 million US dollars in 2023 and further decreasing to 9,341 million US dollars by the end of 2024. This indicates a strong growth phase up to 2022, followed by a pronounced contraction in the latter two years.
Total assets for the segment showed relative stability throughout the period under review. Starting at 7,696 million US dollars in 2020, assets slightly increased to 7,985 million US dollars in 2022, then decreased marginally to 7,678 million US dollars by 2024. The fluctuations in assets are minor, suggesting consistent asset management despite the volatility in sales.
The segment asset turnover ratio, which measures the efficiency in utilizing assets to generate sales, followed a pattern similar to net sales. It increased from 1.4 in 2020 to a peak of 2.08 in 2022, indicating improved efficiency during the growth years. The ratio then declined sharply to 1.29 in 2023 and further to 1.22 in 2024, reflecting reduced asset utilization efficiency in recent years, consistent with the downward trend in sales.
- Summary of trends
- There was strong growth in net sales and asset turnover through 2022, reflecting increased demand and operational efficiency in those years.
- The subsequent two years saw a marked decline in sales and asset turnover, suggesting decreased market demand or operational challenges.
- Total assets remained relatively stable, implying that asset base adjustments did not keep pace with the rapid changes in sales performance.
- The decline in asset turnover after 2022 highlights a potential efficiency concern as assets were less effectively used to generate revenue during the downturn.
Segment Asset Turnover: Medical Devices
Abbott Laboratories; Medical Devices; segment asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The financial data for the Medical Devices segment exhibits a consistent positive trend over the examined period from 2020 to 2024. Net sales have demonstrated substantial growth, increasing steadily each year. Starting at 11,787 million US dollars in 2020, net sales have risen to 18,986 million US dollars by 2024, reflecting strong market demand and potential expansion within the segment.
Total assets have also increased over the period, though at a more moderate pace compared to net sales. From 6,893 million US dollars in 2020, the total assets have grown to 9,472 million US dollars in 2024. This gradual increase in assets likely supports the segment’s operational growth and capacity enhancement.
The segment asset turnover ratio, which measures the efficiency of asset utilization in generating sales, shows a generally positive trend with some fluctuations. The ratio improved from 1.71 in 2020 to 1.98 in 2021, indicating improved efficiency. There was a slight decline to 1.87 in 2022, where it stabilized in 2023. In 2024, the ratio increased again to 2.00, signifying enhanced effectiveness in using assets to generate sales revenue.
- Net Sales
- Consistently increased year-over-year, with a total growth of approximately 61% from 2020 to 2024.
- Total Assets
- Gradually increased by about 37% over the five-year span, supporting operational expansion.
- Segment Asset Turnover
- Generally improving, with a minor dip in 2022 and 2023, finally reaching the highest efficiency level of 2.0 in 2024.
Overall, the data indicates a strong upward trajectory in sales supported by a continuous, albeit slower, increase in total assets and improved asset utilization efficiency. This combination suggests effective management and growth within the Medical Devices segment.
Segment Capital Expenditures to Depreciation
Abbott Laboratories, capital expenditures to depreciation by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual reportable segment capital expenditures to depreciation ratios over the five-year period reveals varying trends across different business segments.
- Established Pharmaceutical Products
- This segment displays a generally stable upward trend in the ratio, increasing from 1.24 in 2020 to 1.91 in 2024. After an initial rise between 2020 and 2021, the ratio plateaus in 2022 and 2023 before a further increase in 2024, indicating a consistent level of capital expenditures relative to depreciation, with a slight acceleration towards the end of the period.
- Nutritional Products
- The ratio in this segment starts at 1.41 in 2020, decreasing to 1.15 in 2021, suggesting reduced capital spending or elevated depreciation. Subsequently, there is a significant increase to 1.62 in 2022 and a sharp peak at 2.95 in 2023, indicating heightened capital investments. The ratio declines to 2.4 in 2024 but remains relatively high compared to earlier years, reflecting a possible focused expansion or modernization effort in this segment.
- Diagnostic Products
- This segment shows a decreasing trend from a high ratio of 2.59 in 2020 to 1.29 in 2021, followed by a modest recovery to 1.68 in 2022. The ratio then slightly declines in 2023 and 2024, settling at 1.45. The initial sharp drop and subsequent fluctuations suggest variability in capital expenditure emphasis relative to asset depreciation, possibly reflecting changes in strategic priorities or asset lifecycle stages.
- Medical Devices
- The ratio begins at 1.43 in 2020 and decreases gradually to 1.08 in 2022, indicating reduced capital expenditures relative to depreciation. However, there is a notable rebound to 1.92 in 2023, followed by a slight decrease to 1.84 in 2024. This pattern points to a period of restrained investment followed by a renewed capital expenditure phase, potentially linked to product development or upgrades within the segment.
Segment Capital Expenditures to Depreciation: Established Pharmaceutical Products
Abbott Laboratories; Established Pharmaceutical Products; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property and equipment | |||||
| Depreciation | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation
= ÷ =
The segment's capital investment activity, as reflected by additions to property and equipment, demonstrates a consistent upward trend over the five-year period, rising from $109 million in 2020 to $183 million in 2024. This growth suggests a sustained commitment to expanding or upgrading physical assets within the segment.
Depreciation expenses have similarly increased during the same timeframe, moving from $88 million in 2020 to a peak of $104 million in 2023 before declining to $96 million in 2024. This indicates a growing asset base subject to depreciation, with a slight reduction in the most recent year, possibly due to asset disposals or changes in depreciation policies.
The ratio of segment capital expenditures to depreciation shows variation but maintains a generally high level throughout the period. Starting at 1.24 in 2020, the ratio rises sharply to 1.8 in 2021, maintaining that level through 2022, slightly decreasing to 1.78 in 2023, and increasing again to 1.91 in 2024. This sustained ratio above 1 indicates that capital expenditures consistently exceed depreciation, implying net investment in the fixed asset base and potential growth or renewal of productive capacity within the segment.
- Capital Expenditures Trend
- Shows consistent year-over-year increases with a marginal decrease in the final year, pointing to ongoing investment activities.
- Depreciation Expense Trend
- Generally rising in line with capital additions, reflecting asset aging and possibly new asset capitalization, with a slight downturn in the last year.
- Capital Expenditures to Depreciation Ratio
- Indicates a healthy rate of reinvestment, remaining well above 1 throughout, highlighting continued asset base expansion or modernization.
Segment Capital Expenditures to Depreciation: Nutritional Products
Abbott Laboratories; Nutritional Products; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property and equipment | |||||
| Depreciation | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation
= ÷ =
- Additions to property and equipment
- The additions to property and equipment exhibit an overall increasing trend from 2020 to 2024. Initially, there is a decrease from 201 million USD in 2020 to 174 million USD in 2021. This is followed by a significant increase to 251 million USD in 2022, with a strong surge to 457 million USD in 2023. In 2024, the additions slightly decline but remain elevated at 382 million USD, indicating robust investment activities in recent years.
- Depreciation
- Depreciation expenses demonstrate a gradual and steady upward trend. Starting at 143 million USD in 2020, it increases progressively each year, reaching 159 million USD by 2024. The incremental rise is modest and consistent, reflecting systematic allocation of asset costs over time.
- Segment capital expenditures to depreciation ratio
- This ratio shows the relationship between capital expenditures and depreciation expenses, reflecting investment intensity relative to asset aging. The ratio declines from 1.41 in 2020 to 1.15 in 2021, suggesting reduced capital spending relative to depreciation that year. However, it subsequently increases markedly, reaching 1.62 in 2022 and peaking at 2.95 in 2023, indicating a substantial escalation in investments compared to depreciation. In 2024, the ratio falls to 2.4 but remains significantly above earlier levels, indicating a sustained higher level of capital expenditure relative to depreciation.
Segment Capital Expenditures to Depreciation: Diagnostic Products
Abbott Laboratories; Diagnostic Products; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property and equipment | |||||
| Depreciation | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation
= ÷ =
The data reflects the annual financial trends for a specific reportable segment over a five-year period, ending December 31, 2024.
- Additions to property and equipment
- This metric shows a declining trend initially, decreasing from 1,263 million USD in 2020 to 750 million USD in 2023. However, in 2024, there is a slight increase to 758 million USD, indicating a modest recovery in capital investments after several years of reduction.
- Depreciation
- Depreciation expense displays fluctuations over the periods reviewed. It rises significantly from 488 million USD in 2020 to 760 million USD in 2021, then decreases to 494 million USD in 2022, and modestly increases again in 2023 and 2024, reaching 521 million USD. This pattern may suggest changes in asset base, useful lives, or asset write-offs impacting the depreciation charge.
- Segment capital expenditures to depreciation ratio
- The ratio starts high at 2.59 in 2020, indicating that capital expenditures substantially exceeded depreciation expense at that time. A marked drop occurs in 2021 to 1.29, reflecting a significant decrease in capital spending relative to depreciation. Subsequently, the ratio fluctuates within a narrower band, ranging between 1.45 and 1.68 from 2022 to 2024, implying a more balanced investment in capital assets relative to asset usage or aging during these years.
Overall, the segment's capital investment activities have reduced compared to depreciation expense since 2020, with a notable moderation in capital intensity starting from 2021. This pattern suggests a strategic adjustment in asset acquisition and management, potentially targeting optimization of existing assets rather than aggressive expansion. The modest recovery in capital additions in 2024 may indicate a cautious resumption of investment activities.
Segment Capital Expenditures to Depreciation: Medical Devices
Abbott Laboratories; Medical Devices; segment capital expenditures to depreciation calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property and equipment | |||||
| Depreciation | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property and equipment ÷ Depreciation
= ÷ =
- Additions to property and equipment
- The capital expenditure values exhibit a general upward trend over the five-year period. Starting at 402 million US dollars in 2020, there is a slight decrease in 2021 and 2022 to 348 million and 335 million respectively. However, a significant increase is observed in 2023 where the additions more than double to 604 million US dollars, followed by a further rise to 630 million in 2024. This pattern suggests a recent acceleration in investment in property and equipment.
- Depreciation
- Depreciation expenses show a consistent but moderate increase throughout the period analyzed. The figures start at 281 million US dollars in 2020 and gradually increase each year, reaching 343 million US dollars in 2024. This steady growth reflects ongoing aging or usage of capital assets but at a less volatile pace compared to capital expenditures.
- Segment capital expenditures to depreciation ratio
- The ratio experienced a declining trend from 1.43 in 2020 to 1.08 in 2022, indicating a phase where the additions to property and equipment were slightly above or near the annual depreciation costs. However, a pronounced increase in the ratio is notable in 2023, reaching 1.92 and then slightly declining to 1.84 in 2024. This surge aligns with the increased capital expenditures and suggests that investment in assets grew considerably faster than the rate of asset consumption or depreciation during this later period.
Net sales
Abbott Laboratories, net sales by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Established Pharmaceutical Products
- The net sales of this segment demonstrate a steady upward trend over the five-year period. Starting at $4,303 million in 2020, the sales increased consistently each year, reaching $5,194 million by 2024. This represents a cumulative growth of approximately 20.7%, indicating stable performance and moderate growth in this segment.
- Nutritional Products
- The sales figures for Nutritional Products exhibit some variability. After increasing from $7,647 million in 2020 to $8,294 million in 2021, there was a noticeable decline to $7,459 million in 2022. However, the segment rebounded in the subsequent years, rising to $8,154 million in 2023 and further to $8,413 million in 2024. Overall, the segment shows resilience with a net growth of about 10% from 2020 to 2024, despite the dip in 2022.
- Diagnostic Products
- This segment shows significant volatility. Sales grew sharply from $10,805 million in 2020 to $15,644 million in 2021, followed by a further increase to $16,584 million in 2022. Nonetheless, a pronounced decline occurred in the following years, dropping to $9,988 million in 2023 and $9,341 million in 2024. This results in a net decrease relative to the peak years, with the 2024 figure close to the 2020 baseline. The pattern suggests external factors or market conditions impacting sales substantially post-2022.
- Medical Devices
- The Medical Devices segment exhibited consistent and robust growth throughout the period. Starting at $11,787 million in 2020, sales increased steadily each year, reaching $18,986 million in 2024. This represents a substantial increase of approximately 61%, indicating strong demand and expansion in this segment.
- Total Reportable Segments
- Total net sales across all reportable segments increased from $34,542 million in 2020 to a peak of $43,642 million in 2022. However, there was a contraction in sales in 2023 to $40,095 million, followed by a modest recovery to $41,934 million in 2024. The overall growth over the five years is approximately 21.3%. The decline after 2022 aligns with the downturn observed in the Diagnostic Products segment, which significantly impacted the aggregate sales figures despite growth in other segments.
Operating earnings
Abbott Laboratories, operating earnings by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Established Pharmaceutical Products
- The segment demonstrated consistent growth over the observed period, increasing from $794 million in 2020 to $1,233 million in 2024. This steady upward trend reflects a stable and expanding revenue base within this category, with a notable incremental growth each year.
- Nutritional Products
- The segment showed relative stability between 2020 and 2021, with values around $1,750 million. However, a significant decline occurred in 2022, dropping sharply to $706 million. This was followed by a recovery in 2023 and further growth in 2024, reaching $1,505 million. This pattern suggests a period of disruption or restructuring in 2022, with a subsequent rebound and positive momentum.
- Diagnostic Products
- This segment experienced a substantial increase from $3,725 million in 2020 to a peak of $6,667 million in 2022. Following this peak, there was a dramatic decline in 2023 to $2,433 million and a further decrease to $2,073 million in 2024. The data indicates volatility, with a spike potentially linked to exceptional external factors, followed by a significant contraction.
- Medical Devices
- The segment showed robust growth overall, rising from $3,038 million in 2020 to $6,153 million in 2024. Despite a slight dip in 2022 compared to 2021, the trend remained upward with marked increases in 2023 and 2024, signaling strong and expanding performance in the medical devices category.
- Total reportable segments
- Total operating earnings increased notably from $9,308 million in 2020 to $13,422 million in 2021, driven largely by gains in diagnostic and medical devices segments. However, total earnings declined in 2022 to $12,831 million, then fell more sharply in 2023 to $10,278 million, with a slight recovery to $10,964 million in 2024. This overall pattern reflects significant volatility influenced largely by the diagnostic segment’s fluctuations and the partial recovery of other segments.
Depreciation
Abbott Laboratories, depreciation by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Overall Depreciation Trend
- The total depreciation across all reportable segments exhibited a notable increase from 1000 million US dollars in 2020 to a peak of 1290 million US dollars in 2021. This was followed by a decline to 1057 million in 2022, after which it gradually rose again to 1119 million by 2024.
- Established Pharmaceutical Products
- This segment displayed a generally moderate upward trend in depreciation, increasing from 88 million in 2020 to a high of 104 million in 2023. However, a slight decline occurred in 2024, dropping to 96 million.
- Nutritional Products
- The depreciation in this segment showed consistent growth, rising steadily from 143 million in 2020 to 159 million in 2024. This suggests a steady investment in assets related to nutritional products over the period.
- Diagnostic Products
- There were significant fluctuations observed in this segment. After an initial increase from 488 million in 2020 to 760 million in 2021, depreciation sharply decreased to 494 million in 2022 and then remained relatively stable around 499 to 521 million through 2024. This volatility may reflect irregular asset additions or disposals.
- Medical Devices
- The depreciation expense for medical devices gradually increased from 281 million in 2020 to 343 million in 2024. The growth trend was steady though less pronounced compared to Nutritional Products.
- Segment Comparison
- Diagnostic Products consistently recorded the highest depreciation values, although with considerable volatility. Nutritional Products and Medical Devices showed steady growth in depreciation, indicating ongoing asset investments. Established Pharmaceutical Products had the lowest depreciation amounts, with minor fluctuations over the years.
- Conclusion
- The data reflect varied depreciation patterns across segments, possibly related to differing capital expenditure strategies and asset lifecycles. The decline in total depreciation after 2021 followed by a gradual recovery suggests a possible adjustment period in asset investments or disposals. The steady increases in Nutritional Products and Medical Devices depreciation indicate continuous asset growth in these areas.
Additions to property and equipment
Abbott Laboratories, additions to property and equipment by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The data on additions to property and equipment across the reportable segments reveals several noteworthy trends over the five-year period.
- Established Pharmaceutical Products
- Investment in established pharmaceutical products exhibited an overall upward trend from 2020 through 2023, increasing from 109 million USD to a peak of 185 million USD. However, there was a slight decrease in 2024 to 183 million USD, indicating a possible stabilization or minor reduction in capital allocation within this segment.
- Nutritional Products
- This segment showed significant volatility over the period. After an initial decrease from 201 million USD in 2020 to 174 million USD in 2021, investments surged notably to 251 million USD in 2022 and then nearly doubled to 457 million USD in 2023. The subsequent decline to 382 million USD in 2024 still represents a substantial increase compared to early years, suggesting heightened but somewhat fluctuating investment activity in nutritional products.
- Diagnostic Products
- There is a clear downward trend in additions to diagnostic products, dropping from a high of 1263 million USD in 2020 to a low of 750 million USD in 2023. A slight recovery to 758 million USD in 2024 is observed, but the overall trajectory indicates reduced capital expenditure in this segment over the five years.
- Medical Devices
- Additions to medical devices initially decreased from 402 million USD in 2020 to 335 million USD in 2022, followed by a strong rebound to 604 million USD in 2023 and a further modest increase to 630 million USD in 2024. This pattern suggests a strategic shift with increased investment focus on medical devices in the latter years.
- Total Reportable Segments
- Total capital additions across all reportable segments declined from 1975 million USD in 2020 to 1593 million USD in 2022. Thereafter, total investments rose substantially to 1996 million USD in 2023, slightly decreasing to 1953 million USD in 2024. This trend reflects an overall recovery in capital expenditure after a mid-period dip, driven primarily by increased funding in nutritional products and medical devices.
Total assets
Abbott Laboratories, total assets by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Established Pharmaceutical Products | |||||
| Nutritional Products | |||||
| Diagnostic Products | |||||
| Medical Devices | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The total assets across the reportable segments demonstrate varied trends over the analyzed period, reflecting different growth dynamics within each segment.
- Established Pharmaceutical Products
- This segment's total assets showed minor fluctuations, initially decreasing from US$2,888 million in 2020 to US$2,789 million in 2021. Subsequently, there was a modest recovery to US$2,883 million in 2022, followed by a more notable increase to US$3,118 million in 2023. However, the value slightly declined again to US$3,087 million in 2024. Overall, the assets in this segment remained relatively stable with a slight upward shift towards the later years.
- Nutritional Products
- The assets in this segment exhibited consistent growth throughout the timeframe. Starting at US$3,478 million in 2020, the value slightly decreased to US$3,425 million in 2021 before accelerating upward to US$3,625 million in 2022. A significant rise occurred in 2023 to US$4,270 million, which further increased to US$4,404 million in 2024. This suggests strong expansion and investment in the nutritional products segment over the years.
- Diagnostic Products
- This segment maintained relatively stable asset values with minor variations. Beginning at US$7,696 million in 2020, the total assets remained nearly flat at US$7,699 million in 2021 and experienced a moderate increase to US$7,985 million in 2022. However, in 2023 and 2024, the segment saw slight declines to US$7,767 million and US$7,678 million, respectively. These small fluctuations indicate a steady asset base without significant growth or contraction.
- Medical Devices
- There was a clear upward trend in this segment's total assets. From US$6,893 million in 2020, assets increased consistently year over year to US$7,261 million in 2021, US$7,844 million in 2022, US$9,029 million in 2023, and reaching US$9,472 million in 2024. This represents substantial growth, suggesting considerable investment and expansion activities within the medical devices segment.
- Total reportable segments
- The aggregate total assets of all reportable segments combined reflect a positive trajectory over the five-year period. The combined total rose gradually from US$20,955 million in 2020 to US$21,174 million in 2021, followed by a more marked increase to US$22,337 million in 2022. Growth accelerated in 2023, reaching US$24,184 million, and continued modestly to US$24,641 million in 2024. This indicates overall asset growth across the key operational areas, supported particularly by the expansion in Nutritional Products and Medical Devices segments.