Abbott Laboratories (ABT)

Fixed asset turnover

		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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	41,950,000	41,217,000	40,725,000	40,326,000	40,109,000	39,959,000	40,226,000	41,505,000	43,653,000	45,030,000	45,548,000	44,514,000	43,075,000	42,308,000	40,233,000	37,338,000	34,608,000	32,221,000	31,444,000	32,095,000
Property, plant and equipment	US$ in thousands	—	—	—	—	—	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
Fixed asset turnover		—	—	—	—	—	4.18	4.26	4.47	4.76	5.18	5.17	5.00	4.81	4.79	4.56	4.23	3.83	3.74	3.77	4.06

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $41,950,000K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investments in fixed assets, such as property, plant, and equipment.

Analyzing Abbott Laboratories' fixed asset turnover over the past few quarters, we observe a trend of improvement. The ratio has been steadily increasing from 4.06 in March 2020 to a peak of 5.18 in September 2022 before slightly decreasing to 4.18 by September 2023. This indicates that Abbott Laboratories has been more efficient in utilizing its fixed assets to generate revenue during this period.

A higher fixed asset turnover ratio generally reflects better asset utilization and efficiency in generating sales. It suggests that Abbott Laboratories is effectively leveraging its fixed assets to drive revenue growth.

However, it is important to note that the fixed asset turnover ratio has been fluctuating in the later quarters, dropping to 4.18 by September 2023 and remaining stagnant at that level until the end of 2024. This may warrant further investigation to understand the factors contributing to this trend and whether there are any underlying issues affecting the company's asset management efficiency.

Overall, the upward trend in Abbott Laboratories' fixed asset turnover ratio indicates improving efficiency in terms of generating sales from its fixed assets, which is a positive sign for the company's operational performance.