Abbott Laboratories (ABT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 39,431,000 | 43,093,000 | 42,541,000 | 34,070,000 | 31,164,000 |
| Total assets | US$ in thousands | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 | 67,887,000 |
| Total asset turnover | 0.54 | 0.58 | 0.57 | 0.47 | 0.46 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $39,431,000K ÷ $73,214,000K
= 0.54
Abbott Laboratories' total asset turnover has shown some fluctuations over the past five years. The ratio indicates the company's ability to generate sales revenue relative to its total assets. A higher total asset turnover ratio is generally preferred as it signifies that the company efficiently utilizes its assets to generate sales.
In this case, Abbott Laboratories' total asset turnover has ranged from 0.47 to 0.59 over the five-year period. The highest ratio of 0.59 in 2022 suggests that the company was more effective in generating sales revenue using its total assets that year. However, there was a slight decrease in 2023, where the ratio dropped to 0.55.
Overall, Abbott Laboratories' total asset turnover has remained relatively consistent around the range of 0.47 to 0.59 over the years, indicating a moderate level of efficiency in utilizing its assets to generate sales revenue. It would be beneficial for the company to continue monitoring and improving this ratio to enhance its asset utilization efficiency in the future.
Peer comparison
Dec 31, 2023