Abbott Laboratories (ABT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,656,000 | 7,531,000 | 7,194,000 | 7,038,000 | 7,132,000 | 6,549,000 | 6,652,000 | 7,457,000 | 8,839,000 | 10,319,000 | 11,061,000 | 10,538,000 | 9,703,000 | 9,434,000 | 8,267,000 | 7,035,000 | 5,665,000 | 4,492,000 | 4,298,000 | 4,833,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 16.06% | 18.92% | 18.30% | 18.13% | 18.48% | 17.47% | 17.89% | 10.05% | 24.09% | 28.93% | 30.31% | 29.77% | 27.10% | 27.41% | 24.46% | 20.96% | 17.28% | 14.31% | 14.06% | 15.99% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $7,656,000K ÷ ($—K + $47,664,000K)
= 16.06%
Abbott Laboratories' return on total capital has shown fluctuations over the observation period from March 2020 to December 2024. The return on total capital increased steadily from 15.99% in March 2020 to a peak of 30.31% in June 2022, indicating an improvement in the company's ability to generate profits from its total capital. However, the ratio declined thereafter, reaching 16.06% by December 2024.
Overall, Abbott Laboratories has demonstrated the ability to effectively utilize its total capital to generate returns for shareholders during the period under consideration, with some fluctuations in performance. It would be important to further investigate the factors influencing these fluctuations to assess the sustainability and effectiveness of the company's capital allocation strategies.
Peer comparison
Dec 31, 2024