Abbott Laboratories (ABT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,301,000 | 6,821,000 | 6,883,000 | 7,572,000 | 8,864,000 | 9,848,000 | 10,575,000 | 9,573,000 | 8,744,000 | 8,814,000 | 7,746,000 | 6,924,000 | 5,538,000 | 4,414,000 | 4,126,000 | 4,736,000 | 4,747,000 | 4,475,000 | 4,137,000 | 3,869,000 |
| Long-term debt | US$ in thousands | 13,599,000 | 14,477,000 | 14,562,000 | 14,615,000 | 14,522,000 | 15,297,000 | 16,755,000 | 17,086,000 | 17,296,000 | 17,446,000 | 17,547,000 | 17,489,000 | 18,527,000 | 18,349,000 | 18,184,000 | 16,804,000 | 16,661,000 | 17,639,000 | 18,982,000 | 18,845,000 |
| 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 |
| Return on total capital | 13.99% | 13.13% | 13.30% | 14.67% | 17.31% | 19.32% | 19.86% | 18.24% | 16.47% | 16.99% | 15.09% | 13.56% | 10.79% | 8.88% | 8.46% | 10.07% | 9.94% | 9.05% | 8.16% | 7.77% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,301,000K ÷ ($13,599,000K + $38,603,000K)
= 13.99%
Abbott Laboratories' return on total capital has been fluctuating over the past eight quarters. In the most recent quarter (Q4 2023), the return on total capital was 12.16%, showing a decrease from the previous quarter (Q3 2023) where it was 11.32%. Looking back further, the return on total capital was relatively stable around the 11-12% range in the last four quarters.
Comparing the current return on total capital to the same quarter in the previous year (Q4 2022), there is a noticeable decline from 15.64% to 12.16%. This downward trend may indicate that the company's efficiency in generating returns from its total capital has weakened over the year.
However, it's important to note that a single ratio analysis may not provide a complete picture of the company's financial performance. Further examination of other financial metrics and factors affecting Abbott Laboratories' operations would be necessary to get a holistic understanding of its financial health.
Peer comparison
Dec 31, 2023