Abbott Laboratories (ABT)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,478,000 | 8,362,000 | 8,425,000 | 5,357,000 | 4,532,000 |
| Revenue | US$ in thousands | 39,431,000 | 43,093,000 | 42,541,000 | 34,070,000 | 31,164,000 |
| Operating profit margin | 16.43% | 19.40% | 19.80% | 15.72% | 14.54% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $6,478,000K ÷ $39,431,000K
= 16.43%
Abbott Laboratories' operating profit margin has shown some variability over the past five years. The margin was highest in 2021 at 19.56% and lowest in 2019 at 14.21%. In 2023, the operating profit margin decreased to 16.15% from 19.16% in 2022.
The fluctuations in operating profit margins may be attributed to changes in the company's revenue and operating expenses. A higher operating profit margin indicates that Abbott Laboratories is more efficient in generating profit from its core business activities. However, the recent decrease in operating profit margin in 2023 may warrant further investigation into the company's cost management and revenue generation strategies to sustain profitability in the future.
Peer comparison
Dec 31, 2023