Abbott Laboratories (ABT)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.78	4.77	4.62	4.83	5.33	5.71	5.43	5.54	6.00	5.73	5.38	5.03	5.15	4.76	4.62	5.30	5.55	5.39	5.38	5.74
Receivables turnover	6.01	6.05	6.41	6.80	6.93	6.94	6.25	6.13	6.56	6.52	6.49	6.04	5.31	5.63	6.03	5.97	5.79	5.66	5.46	5.62
Payables turnover	7.31	8.01	7.54	7.73	7.15	7.92	7.13	6.63	7.02	7.51	7.28	6.67	6.54	7.69	7.21	7.62	7.37	7.82	7.27	7.70
Working capital turnover	4.47	4.09	4.32	4.15	4.43	3.88	3.58	4.08	3.82	3.93	3.96	3.93	3.99	4.46	4.95	6.74	6.53	5.48	4.94	5.68

Inventory Turnover:
- The inventory turnover ratio for Abbott Laboratories has been relatively consistent over the past eight quarters, ranging from 2.62 to 3.37.
- The downward trend in inventory turnover could indicate that the company is managing its inventory less efficiently, leading to slower inventory turnover.

Receivables Turnover:
- Abbott Laboratories has maintained a fairly stable receivables turnover ratio over the past two years, ranging from 6.15 to 7.03.
- The consistent high turnover rate suggests that the company is efficient in collecting its accounts receivable.

Payables Turnover:
- The payables turnover ratio for Abbott Laboratories has fluctuated between 4.02 and 4.67 over the past eight quarters.
- The higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, potentially improving its cash flow position.

Working Capital Turnover:
- Abbott Laboratories' working capital turnover has varied between 3.63 and 4.54 over the last two years.
- The increasing trend in working capital turnover suggests that the company is generating more revenue from its working capital, indicating operational efficiency.

In summary, Abbott Laboratories has shown mixed trends in its activity ratios, with stable receivables turnover, fluctuating payables turnover, and a potential decline in inventory turnover efficiency. The increasing working capital turnover indicates improved efficiency in generating revenue from working capital.

Average number of days

		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
Days of inventory on hand (DOH)	days	76.40	76.55	79.01	75.60	68.44	63.96	67.17	65.88	60.84	63.66	67.89	72.53	70.90	76.67	78.93	68.81	65.74	67.72	67.83	63.58
Days of sales outstanding (DSO)	days	60.77	60.32	56.91	53.71	52.67	52.58	58.36	59.57	55.66	55.97	56.20	60.45	68.71	64.81	60.53	61.10	63.08	64.50	66.80	64.90
Number of days of payables	days	49.95	45.60	48.42	47.21	51.08	46.10	51.16	55.06	52.00	48.61	50.14	54.75	55.82	47.46	50.60	47.92	49.53	46.70	50.22	47.39

To analyze Abbott Laboratories' activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH):
- The trend in DOH for Abbott Laboratories has been increasing over the past few quarters, indicating that the company is holding inventory for a longer period before it is sold.
- The DOH ranges from a low of 108.36 days in Q3 2022 to a high of 139.05 days in Q2 2023, suggesting fluctuations in inventory management efficiency.
- A high DOH could tie up capital in inventory and increase carrying costs, potentially impacting liquidity and profitability.

2. Days of Sales Outstanding (DSO):
- Abbott Laboratories' DSO shows fluctuations but generally stays within a relatively narrow range.
- There has been a slight increase in DSO in the recent quarters, with the highest value of 59.74 days in Q4 2023.
- A higher DSO indicates that the company is taking longer to collect its accounts receivable, which may affect cash flow and liquidity.

3. Number of Days of Payables:
- Abbott Laboratories' days of payables have also shown fluctuations across the quarters.
- The number of days of payables ranges from 78.10 days in Q3 2022 to 90.80 days in Q1 2022, indicating variations in the company's payment terms to suppliers.
- A longer number of days of payables suggests that the company is taking longer to pay its suppliers, potentially helping cash flow but could strain supplier relationships if excessively prolonged.

Overall, the analysis of Abbott Laboratories' activity ratios reveals that the company has experienced fluctuations in inventory management, accounts receivable collection, and accounts payable practices. Monitoring these ratios can provide insights into the efficiency of the company's operations and its impact on cash flow and working capital management.

Long-term

	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
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
Total asset turnover	0.54	0.55	0.54	0.55	0.58	0.61	0.61	0.59	0.57	0.57	0.54	0.51	0.47	0.46	0.45	0.47	0.46	0.45	0.44	0.44

The fixed asset turnover ratio for Abbott Laboratories has exhibited a decreasing trend over the past eight quarters, ranging from 3.95 to 5.18. This indicates the company's ability to generate sales from its fixed assets has slightly declined during this period.

On the other hand, the total asset turnover ratio has remained relatively stable, fluctuating around 0.55 to 0.62. This suggests that Abbott Laboratories has been efficient in utilizing its total assets to generate revenue, although there is a slight downward trend in recent quarters.

Overall, while the company has shown consistent performance in generating sales relative to its total assets, there may be some areas for improvement in optimizing the utilization of its fixed assets to drive revenue growth.