Abbott Laboratories (ABT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 6,664,000 | 8,306,000 | 8,211,000 | 4,992,000 | 4,077,000 |
| Revenue | US$ in thousands | 39,431,000 | 43,093,000 | 42,541,000 | 34,070,000 | 31,164,000 |
| Pretax margin | 16.90% | 19.27% | 19.30% | 14.65% | 13.08% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $6,664,000K ÷ $39,431,000K
= 16.90%
Abbott Laboratories' pretax margin, which measures the profitability of the company before accounting for taxes, has shown fluctuations over the past five years. The pretax margin decreased from 12.78% in 2019 to 14.36% in 2020, indicating a lower profitability level in 2020. However, there was a notable improvement in 2021, with the pretax margin increasing to 19.06%, and this improvement was sustained in 2022 with a pretax margin of 19.03%. In 2023, the pretax margin declined slightly to 16.61% compared to the previous year.
Overall, Abbott Laboratories has demonstrated a generally healthy pretax margin over the past five years, with profitable operations before the impact of taxes. The fluctuations in the pretax margin suggest changes in the company's cost structure, pricing strategies, and operational efficiency during the period under review. It is important for Abbott Laboratories to continue monitoring and managing its pretax margin to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023