Abbott Laboratories (ABT)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	13,402,000	5,767,000	5,557,000	5,630,000	5,723,000	5,162,000	5,161,000	5,804,000	6,933,000	7,889,000	8,554,000	7,725,000	7,071,000	7,244,000	6,376,000	5,724,000	4,495,000	3,382,000	3,110,000	3,579,000
Total stockholders’ equity	US$ in thousands	47,664,000	39,796,000	39,318,000	38,810,000	38,603,000	37,481,000	37,174,000	74,219,000	36,686,000	35,675,000	36,490,000	35,399,000	35,802,000	34,422,000	33,800,000	33,562,000	32,784,000	31,386,000	30,578,000	30,218,000
ROE		28.12%	14.49%	14.13%	14.51%	14.83%	13.77%	13.88%	7.82%	18.90%	22.11%	23.44%	21.82%	19.75%	21.04%	18.86%	17.06%	13.71%	10.78%	10.17%	11.84%

December 31, 2024 calculation

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

Abbott Laboratories' return on equity (ROE) has shown variability over the past few years, ranging from a low of 7.82% on March 31, 2022, to a high of 28.12% on December 31, 2024. The increasing trend in ROE from 2021 to 2024 indicates that the company has been effectively utilizing its equity to generate profits for shareholders.

The ROE exceeded 20% in multiple quarters, signifying that Abbott Laboratories efficiently generated profits relative to the shareholders' equity invested in the company. However, the ROE experienced a notable decline in the first quarter of 2023 before gradually recovering and stabilizing around the 14%-15% range in the latter half of 2023 and 2024.

Overall, Abbott Laboratories' ROE performance demonstrates a mix of strong profitability and periodic fluctuations, suggesting a need for continued monitoring of the company's ability to generate returns on its shareholders' equity.