Abbott Laboratories (ABT)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	13,599,000	14,522,000	17,296,000	18,527,000	16,661,000
Total stockholders’ equity	US$ in thousands	38,603,000	36,686,000	35,802,000	32,784,000	31,088,000
Debt-to-capital ratio		0.26	0.28	0.33	0.36	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,599,000K ÷ ($13,599,000K + $38,603,000K)
= 0.26

The debt-to-capital ratio of Abbott Laboratories has shown a decreasing trend over the past five years, declining from 0.37 in 2019 to 0.28 in 2023. This indicates that the company has been able to reduce its reliance on debt in relation to its total capital structure. A lower debt-to-capital ratio suggests a stronger financial position and less financial risk for the company. Abbott Laboratories' ability to lower its debt levels relative to its capital base may reflect effective debt management, improved profitability, or strategic capital structure decisions. Overall, the declining trend in the debt-to-capital ratio demonstrates a positive financial trajectory for Abbott Laboratories.