Abbott Laboratories (ABT)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	41,950,000	40,109,000	43,653,000	43,075,000	34,608,000
Total assets	US$ in thousands	81,414,000	73,214,000	74,438,000	75,196,000	72,548,000
Total asset turnover		0.52	0.55	0.59	0.57	0.48

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $41,950,000K ÷ $81,414,000K
= 0.52

Total asset turnover is a key efficiency ratio that measures a company's ability to generate sales revenue from its total assets. In the case of Abbott Laboratories, the trend in total asset turnover over the past five years shows some fluctuations.

In December 2020, Abbott Laboratories had a total asset turnover of 0.48, indicating that for every dollar of total assets, the company generated $0.48 in sales. Over the following years, the total asset turnover improved, reaching 0.59 by December 2022. This suggests that the company became more efficient in utilizing its assets to generate revenue.

However, in December 2023, the total asset turnover dropped to 0.55, and further declined to 0.52 by December 2024. This downward trend indicates that Abbott Laboratories may be experiencing challenges in optimizing its asset utilization efficiency in generating sales.

Overall, while there have been fluctuations in Abbott Laboratories' total asset turnover over the past five years, the company has shown improvement in asset utilization efficiency. However, the recent decline in total asset turnover raises some concerns about the company's ability to generate revenue from its assets effectively. Further analysis of the company's operations and asset management may be necessary to address these trends.