Abbott Laboratories (ABT)
Working capital 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 current assets | US$ in thousands | 23,656,000 | 22,670,000 | 25,224,000 | 24,239,000 | 20,441,000 |
| Total current liabilities | US$ in thousands | 14,157,000 | 13,841,000 | 15,489,000 | 13,105,000 | 11,907,000 |
| Working capital turnover | 4.42 | 4.54 | 4.48 | 3.87 | 4.06 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $41,950,000K ÷ ($23,656,000K – $14,157,000K)
= 4.42
The working capital turnover ratio for Abbott Laboratories has displayed a fluctuating trend over the past five years. It stood at 4.06 in December 31, 2020, indicating that the company generated $4.06 in revenue for each dollar of working capital invested during that year.
In the subsequent years, the ratio decreased slightly to 3.87 in December 31, 2021, which suggests a decrease in efficiency in utilizing working capital to generate revenue. However, this trend reversed in the following years, with the ratio increasing to 4.48 in December 31, 2022, 4.54 in December 31, 2023, and then declining slightly to 4.42 in December 31, 2024.
Overall, the working capital turnover ratio for Abbott Laboratories generally indicates a good level of efficiency in utilizing its working capital to generate revenue, with improvements seen in recent years. This trend suggests that the company has been effectively managing its working capital to support its operations and revenue generation.
Peer comparison
Dec 31, 2024