Abbott Laboratories (ABT)

Working capital 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
Total current assets	US$ in thousands	22,670,000	22,664,000	23,505,000	24,377,000	25,224,000	24,845,000	24,956,000	23,429,000	24,239,000	23,492,000	22,627,000	21,817,000	20,441,000	17,390,000	17,221,000	15,498,000	15,667,000	16,119,000	15,195,000	14,409,000
Total current liabilities	US$ in thousands	13,841,000	13,042,000	14,350,000	14,530,000	15,489,000	13,365,000	12,392,000	12,647,000	13,105,000	12,867,000	12,614,000	12,462,000	11,907,000	10,257,000	10,959,000	10,808,000	10,863,000	10,491,000	9,062,000	9,113,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $39,431,000K ÷ ($22,670,000K – $13,841,000K)
= 4.47

Abbott Laboratories has shown consistent improvement in its working capital turnover over the past eight quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support its operations and generate sales.

In Q4 2023, Abbott Laboratories achieved a working capital turnover ratio of 4.54, which is higher than the ratios reported in the previous quarters. This suggests that the company has been able to enhance its operational efficiency and generate more sales revenue relative to its working capital investment during this period.

The trend of increasing working capital turnover ratios from Q1 2022 to Q4 2023 indicates a positive development in Abbott Laboratories' management of its working capital. The company has been able to optimize its working capital resources effectively, leading to improved sales generation efficiency.

Overall, the upward trend in Abbott Laboratories' working capital turnover ratio reflects the company's ability to efficiently utilize its working capital to support its operations and drive sales growth.