Abbott Laboratories (ABT)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 121.35 | 133.19 | 133.87 | 134.76 | 130.44 | 134.88 | 139.18 | 122.00 | 117.71 | 108.36 | 112.68 | 108.62 | 101.54 | 105.14 | 111.49 | 121.95 | 121.93 | 134.86 | 142.38 | 124.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 121.35 | 133.19 | 133.87 | 134.76 | 130.44 | 134.88 | 139.18 | 122.00 | 117.71 | 108.36 | 112.68 | 108.62 | 101.54 | 105.14 | 111.49 | 121.95 | 121.93 | 134.86 | 142.38 | 124.87 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 121.35 + — – —
= 121.35
The cash conversion cycle of Abbott Laboratories has shown fluctuation over the periods analyzed. The cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows, was observed to be 124.87 days as of March 31, 2020. The cycle increased to 142.38 days by June 30, 2020, indicating a lengthening period for the company to convert its resources into cash.
However, the cycle started to improve in the following quarters, with a decrease to 121.93 days by December 31, 2020, and further to 105.14 days by September 30, 2021. This downward trend continued until December 31, 2021, with a cycle of 101.54 days, reflecting more efficient cash flow conversion processes during that period.
Subsequently, the cycle increased slightly to 117.71 days by December 31, 2022, before peaking at 139.18 days on June 30, 2023. This peak was followed by a gradual decline, with the cycle reduced to 121.35 days by December 31, 2024.
Overall, while there were fluctuations in the cash conversion cycle of Abbott Laboratories, the company managed to improve efficiency in converting its investments into cash during certain periods, as evidenced by the decreasing cycle lengths recorded. Monitoring the cash conversion cycle can provide insights into the company's operational efficiency and management of working capital.
Peer comparison
Dec 31, 2024