Abbott Laboratories (ABT)
Receivables 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 |
| Receivables | US$ in thousands | 6,565,000 | 6,499,000 | 6,172,000 | 6,020,000 | 6,218,000 | 6,408,000 | 7,199,000 | 7,179,000 | 6,487,000 | 6,405,000 | 6,113,000 | 6,096,000 | 6,414,000 | 5,649,000 | 5,140,000 | 5,292,000 | 5,425,000 | 5,450,000 | 5,548,000 | 5,345,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $39,431,000K ÷ $6,565,000K
= 6.01
The receivables turnover ratio for Abbott Laboratories has shown some fluctuation throughout the past eight quarters. It measures how efficiently the company is collecting its accounts receivable during a specific period. The trend indicates that Abbott Laboratories has been able to convert its accounts receivable into cash around six to seven times per year on average.
In the most recent quarter, Q4 2023, the receivables turnover ratio decreased slightly to 6.11, which was lower compared to the previous quarter's ratio of 6.15 in Q3 2023. However, it is important to note that this decline may not necessarily be a cause for concern as the ratio remains relatively consistent around the six to seven range.
Looking back over the past eight quarters, the highest receivables turnover ratio was observed in Q4 2022 at 7.02, indicating that Abbott Laboratories was more efficient in collecting its receivables during that period. Conversely, the lowest ratio was seen in Q2 2022 at 6.20, suggesting a slightly slower collection of accounts receivable during that quarter.
Overall, Abbott Laboratories has maintained a fairly stable receivables turnover ratio, reflecting a consistent ability to efficiently collect outstanding payments from its customers. Keeping track of this ratio can provide insights into the company's liquidity and operational efficiency in managing its accounts receivable.
Peer comparison
Dec 31, 2023