Abbott Laboratories (ABT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 | 67,887,000 |
| Operating ROA | 8.85% | 11.23% | 11.20% | 7.38% | 6.68% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,478,000K ÷ $73,214,000K
= 8.85%
Abbott Laboratories' operating return on assets (operating ROA) has fluctuated over the past five years. The company's operating ROA was 8.85% in 2023, which is lower than the previous year's figure of 11.23% in 2022. However, Abbott's operating ROA in 2023 is still higher than the levels seen in 2021 (11.20%), 2020 (7.38%), and 2019 (6.68%). This suggests that Abbott Laboratories has been able to generate a respectable return on its assets in recent years, indicating efficient management in utilizing its assets to generate operating profits. The decline in operating ROA from 2022 to 2023 may warrant further investigation to understand the factors contributing to this decrease and whether it is a temporary or concerning trend.
Peer comparison
Dec 31, 2023