Abbott Laboratories (ABT)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	13,402,000	5,723,000	6,933,000	7,071,000	4,495,000
Total stockholders’ equity	US$ in thousands	47,664,000	38,603,000	36,686,000	35,802,000	32,784,000
ROE		28.12%	14.83%	18.90%	19.75%	13.71%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $13,402,000K ÷ $47,664,000K
= 28.12%

Abbott Laboratories' Return on Equity (ROE) has shown a varying trend over the past five years.

In December 2020, the ROE was 13.71%, indicating that for every dollar of shareholders' equity, Abbott generated a return of 13.71%.

By December 2021, the ROE had increased to 19.75%, reflecting improved profitability and efficiency in utilizing shareholders' equity.

In 2022, the ROE slightly decreased to 18.90%, but still remained at a relatively high level, showcasing the company's ability to generate profits from equity investments.

The ROE dropped to 14.83% by December 2023, signaling a potential decrease in profitability or efficiency in utilizing equity during that period.

However, in December 2024, Abbott Laboratories experienced a significant increase in ROE to 28.12%, indicating a substantial improvement in generating profits relative to shareholders' equity.

Overall, Abbott Laboratories' ROE has generally been positive and improving, with some fluctuations from year to year. This metric is important for investors as it provides insights into the company's profitability and efficiency in generating returns for shareholders.