Abbott Laboratories (ABT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,825,000 | 6,478,000 | 8,362,000 | 8,425,000 | 5,357,000 |
| Total assets | US$ in thousands | 81,414,000 | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 |
| Operating ROA | 8.38% | 8.85% | 11.23% | 11.20% | 7.38% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $6,825,000K ÷ $81,414,000K
= 8.38%
Abbott Laboratories' operating return on assets (ROA) has shown variation over the past five years. In December 2020, the operating ROA was 7.38%, which increased to 11.20% by December 2021, indicating improved efficiency in generating earnings from its operational assets. This positive trend continued into December 2022, with the operating ROA slightly increasing to 11.23%.
However, there was a slight decline in Abbott Laboratories' operating ROA in December 2023 to 8.85%. This could indicate potential challenges in maintaining the level of profitability relative to its asset base. By December 2024, the operating ROA further decreased to 8.38%, suggesting a continuing trend of lower efficiency in utilizing assets to generate operating income.
Overall, Abbott Laboratories has shown strong operating ROA performance in recent years, with notable improvements recorded in 2021 and 2022. However, the slight decline in 2023 and 2024 underscores the importance of closely monitoring asset utilization and operational efficiency to sustain and enhance profitability levels.
Peer comparison
Dec 31, 2024