Abbott Laboratories (ABT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 38,603,000 | 36,686,000 | 35,802,000 | 32,784,000 | 31,088,000 |
| ROE | 14.83% | 18.90% | 19.75% | 13.71% | 11.86% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,723,000K ÷ $38,603,000K
= 14.83%
Abbott Laboratories' return on equity (ROE) has shown a general upward trend over the past five years, indicating the company's improving ability to generate profit from shareholders' equity. The ROE decreased from 2019 to 2020 but has been on an increasing trend since then. The current ROE of 14.83% in 2023, although lower than the previous year, is still relatively strong compared to 2019 and 2020. This indicates that Abbott Laboratories is efficiently utilizing its equity to generate profits for its shareholders. Overall, the company's ROE performance reflects a positive trend in profitability and shareholder value creation over the past five years.
Peer comparison
Dec 31, 2023