Abbott Laboratories (ABT)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	3.01	2.74	2.73	2.71	2.80	2.71	2.62	2.99	3.10	3.37	3.24	3.36	3.59	3.47	3.27	2.99	2.99	2.71	2.56	2.92
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	4.42	4.63	4.35	4.83	4.54	4.15	4.39	4.26	4.48	3.92	3.63	4.13	3.87	3.98	4.02	3.99	4.06	4.52	5.02	6.84

Inventory turnover is a measure of how efficiently a company manages its inventory. Abbott Laboratories' inventory turnover has shown a fluctuating trend over the past few years, increasing from 2.92 in March 2020 to 3.10 in December 2022, then slightly declining to 2.80 by the end of December 2023 before reaching 3.01 in December 2024. This indicates that the company is selling its inventory more frequently in recent years.

Receivables turnover, which reflects how quickly a company is collecting cash from its customers, was not provided in the data set for Abbott Laboratories.

Payables turnover, a ratio that shows how quickly a company pays its suppliers, was also not available in the data set for analysis.

Working capital turnover measures how efficiently a company uses its working capital to generate sales. Abbott Laboratories' working capital turnover has shown a varied pattern, with fluctuations in the ratio over the years. The ratio decreased from 6.84 in March 2020 to 3.87 by December 2021, indicating a decrease in sales efficiency. However, it started to improve afterwards, reaching 4.42 by December 2024, suggesting that the company is utilizing its working capital more effectively in generating sales in recent years.

Average number of days

		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
Days of inventory on hand (DOH)	days	121.35	133.19	133.87	134.76	130.44	134.88	139.18	122.00	117.71	108.36	112.68	108.62	101.54	105.14	111.49	121.95	121.93	134.86	142.38	124.87
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Activity ratios provide insight into how efficiently a company is managing its assets and operations.

1. Days of Inventory on Hand (DOH) for Abbott Laboratories have shown fluctuations over the past few years, ranging from 101.54 days to 139.18 days. A decreasing trend in DOH, such as seen from September 2021 to December 2023, indicates that the company is managing its inventory more efficiently, possibly due to improved inventory management practices or demand forecasting. However, a slight increase in DOH from December 2023 to June 2024 suggests a buildup in inventory levels.

2. Days of Sales Outstanding (DSO) data for Abbott Laboratories is not available for analysis. DSO helps in understanding how quickly a company is collecting its accounts receivable. A lower DSO indicates faster collections, which can improve cash flow and working capital management.

3. Number of Days of Payables information for Abbott Laboratories is not provided, limiting the analysis of how the company manages its accounts payable. A longer payables period could indicate that the company is effectively using trade credit to finance its operations.

In conclusion, a more detailed analysis of DSO and payables turnover would provide a comprehensive view of how Abbott Laboratories manages its working capital and operational efficiency.

Long-term

	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
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
Total asset turnover	0.52	0.55	0.56	0.56	0.55	0.55	0.55	0.56	0.59	0.62	0.61	0.60	0.57	0.57	0.55	0.51	0.48	0.47	0.46	0.48

Abbott Laboratories' long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate sales.

1. Fixed asset turnover: This ratio measures how efficiently the company is using its fixed assets to generate revenue. The trend shows an increasing pattern from March 31, 2020, to September 30, 2022, indicating that Abbott Laboratories improved its utilization of fixed assets during this period. However, there was a slight decline in the ratio from September 30, 2022, to December 31, 2023, suggesting a potential decrease in asset efficiency. The ratio then remained stable until the end of 2024, where data was not available.

2. Total asset turnover: This ratio measures how efficiently the company uses all its assets to generate revenue. The trend in total asset turnover also shows an overall increase from March 31, 2020, to September 30, 2022, indicating an improvement in the company's ability to generate sales from its total assets. However, there was a slight decrease in the ratio from September 30, 2022, to December 31, 2023, which might signal a decline in overall asset efficiency during that period. The ratio remained relatively stable from December 31, 2023, to June 30, 2024, despite a slight decrease observed by the end of the period.

In conclusion, Abbott Laboratories generally improved its efficiency in utilizing both fixed and total assets to drive sales up to September 30, 2022. However, there were some fluctuations and a potential decrease in asset efficiency in the latter period, highlighting the need for further analysis to understand the underlying factors contributing to these changes.