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.