Abbott Laboratories (ABT)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 3,687,000 | 3,292,000 | 2,895,000 | 2,622,000 |
| Total stockholders’ equity | US$ in thousands | 38,603,000 | 37,481,000 | 37,174,000 | 37,010,000 | 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 | 31,088,000 | 31,817,000 | 31,686,000 | 30,925,000 |
| ROE | 14.83% | 13.77% | 13.88% | 15.68% | 18.90% | 22.11% | 23.44% | 21.82% | 19.75% | 21.04% | 18.86% | 17.06% | 13.71% | 10.78% | 10.17% | 11.84% | 11.86% | 10.35% | 9.14% | 8.48% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,723,000K ÷ $38,603,000K
= 14.83%
Abbott Laboratories' return on equity (ROE) has shown a declining trend over the past few quarters, decreasing from 18.90% in Q4 2022 to 14.83% in Q4 2023. This indicates that the company's ability to generate profits from its shareholders' equity has weakened. The ROE peaked at 23.44% in Q2 2022 before gradually declining.
A ROE of 14.83% in the most recent quarter suggests that for every dollar of equity invested by shareholders, Abbott Laboratories generated a profit of 14.83 cents. While a double-digit ROE is generally considered healthy, the decreasing trend may raise concerns about the company's efficiency in utilizing its equity to generate profits.
Investors and analysts may need to further investigate the factors contributing to this decline in ROE, such as profitability, asset efficiency, or leverage. Understanding the reasons behind the trend will be crucial for assessing Abbott Laboratories' long-term financial performance and sustainability.
Peer comparison
Dec 31, 2023