Abbott Laboratories (ABT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,723,000 | 6,933,000 | 7,071,000 | 4,495,000 | 3,687,000 |
| Total assets | US$ in thousands | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 | 67,887,000 |
| ROA | 7.82% | 9.31% | 9.40% | 6.20% | 5.43% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $5,723,000K ÷ $73,214,000K
= 7.82%
Abbott Laboratories' Return on Assets (ROA) has shown a fluctuating trend over the past five years. The ROA decreased from 5.43% in 2019 to 6.20% in 2020, indicating a lower level of efficiency in generating profit from its assets. However, the ROA increased significantly to 9.40% in 2021, demonstrating improved asset utilization and profitability.
In 2022, there was a slight decline in ROA to 9.31%, indicating a stable performance in generating earnings relative to its asset base. The latest available data for 2023 shows a further decrease in ROA to 7.82%, possibly suggesting some challenges in optimizing asset efficiency and profitability.
Overall, Abbott Laboratories has shown periods of both improvement and relative stability in its ROA over the past five years. It is important for the company to continue monitoring and managing its asset utilization effectively to sustain or enhance its profitability levels in the future.
Peer comparison
Dec 31, 2023