Abbott Laboratories (ABT)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	39,431,000	39,324,000	39,587,000	40,914,000	43,093,000	44,485,000	45,026,000	43,990,000	42,541,000	41,768,000	39,700,000	36,806,000	34,070,000	31,814,000	30,993,000	31,613,000	31,389,000	30,840,000	30,313,000	30,061,000
Property, plant and equipment	US$ in thousands	10,154,000	9,552,000	9,449,000	9,282,000	9,162,000	8,689,000	8,818,000	8,908,000	8,959,000	8,831,000	8,816,000	8,832,000	9,029,000	8,620,000	8,343,000	7,907,000	8,038,000	7,825,000	7,825,000	7,626,000
Fixed asset turnover		3.88	4.12	4.19	4.41	4.70	5.12	5.11	4.94	4.75	4.73	4.50	4.17	3.77	3.69	3.71	4.00	3.91	3.94	3.87	3.94

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $39,431,000K ÷ $10,154,000K
= 3.88

Abbott Laboratories' fixed asset turnover has shown a declining trend over the past eight quarters, with a gradual decrease from 5.18 in Q3 2022 to 4.47 in Q1 2023. The ratio measures how efficiently the company is generating revenue from its fixed assets, indicating that Abbott Laboratories has been less effective in this aspect as time has progressed. However, it is important to note that a fixed asset turnover ratio of above 1 generally signifies better performance, and Abbott Laboratories has consistently stayed well above this benchmark across all quarters. This implies that the company is still utilizing its fixed assets effectively, albeit at slightly decreasing levels. Further investigation into the company's operational efficiency and asset management strategies could provide insight into the reasons behind this trend and potential areas for improvement.