Abbott Laboratories (ABT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.40% | 23.61% | 24.87% | 21.14% | 53.71% |
| Operating profit margin | 16.43% | 19.40% | 19.80% | 15.72% | 14.54% |
| Pretax margin | 16.90% | 19.27% | 19.30% | 14.65% | 13.08% |
| Net profit margin | 14.51% | 16.09% | 16.62% | 13.19% | 11.83% |
Based on the profitability ratios of Abbott Laboratories over the past five years, there are some key trends to note. The gross profit margin has shown a slight decline from 58.53% in 2019 to 55.18% in 2023, indicating some pressure on the company's ability to generate profits from its core operations.
The operating profit margin, on the other hand, has been somewhat volatile, with fluctuations between 14.21% in 2019 and 19.56% in 2021. The latest figure of 16.15% in 2023 suggests a moderate level of profitability derived from the company's operating activities.
The pretax margin has also varied over the years, reaching a peak of 19.06% in 2021 and dipping to 12.78% in 2019. The 16.61% figure in 2023 represents the company's ability to generate profits before accounting for taxes, reflecting a moderate level of profitability.
In terms of net profit margin, Abbott Laboratories has shown a consistent improvement from 11.56% in 2019 to 14.27% in 2023. This indicates that the company has been able to effectively manage its expenses and generate higher profits relative to its revenues over time.
Overall, Abbott Laboratories has demonstrated a relatively stable and improving profitability performance over the past five years, with some fluctuations in specific profitability margins. It will be important for the company to continue monitoring and managing its profitability ratios to ensure sustainable growth and financial health in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.85% | 11.23% | 11.20% | 7.38% | 6.68% |
| Return on assets (ROA) | 7.82% | 9.31% | 9.40% | 6.20% | 5.43% |
| Return on total capital | 13.99% | 17.31% | 16.47% | 10.79% | 9.94% |
| Return on equity (ROE) | 14.83% | 18.90% | 19.75% | 13.71% | 11.86% |
Abbott Laboratories has shown consistent profitability over the past five years, as indicated by its profitability ratios.
The Operating Return on Assets (Operating ROA) measures the company's operating income generated per dollar of assets. Abbott's Operating ROA has ranged from 6.68% in 2019 to 11.23% in 2022. The decrease in 2023 to 8.85% could indicate a slight decrease in operational efficiency compared to the previous year.
The Return on Assets (ROA) ratio reflects the company's overall ability to generate profit from its total assets. Abbott's ROA has consistently improved over the years, ranging from 5.43% in 2019 to 9.40% in 2021, demonstrating effective asset utilization and profitability.
The Return on Total Capital measures the returns earned from all sources of capital, including both debt and equity. Abbott's Return on Total Capital has steadily increased from 9.21% in 2019 to 15.64% in 2022 and 2023, indicating efficient capital allocation and higher returns to providers of capital.
The Return on Equity (ROE) ratio evaluates the company's ability to generate returns for its shareholders. Abbott's ROE has improved from 11.86% in 2019 to 19.75% in 2021, reflecting strong profitability in relation to shareholder equity.
Overall, Abbott Laboratories has delivered solid profitability performance, with improvements in key ratios such as ROA, ROE, and Return on Total Capital. These trends indicate the company's efficient management of assets and capital, ultimately generating favorable returns for its stakeholders.