Abbott Laboratories (ABT)

Debt-to-equity 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-equity ratio		0.35	0.40	0.48	0.57	0.54

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,599,000K ÷ $38,603,000K
= 0.35

The debt-to-equity ratio of Abbott Laboratories has been trending downwards over the past five years, indicating a positive development in the company's debt management.

As of December 31, 2023, the debt-to-equity ratio stands at 0.38, which implies that the company has $0.38 in debt for every $1 of equity. This ratio has improved compared to the previous years, where it was 0.46 in 2022, 0.50 in 2021, 0.57 in 2020, and 0.58 in 2019.

A decreasing trend in the debt-to-equity ratio suggests that Abbott Laboratories is relying less on debt to finance its operations and investments, which may reduce the financial risk associated with high levels of debt. The decreasing ratio also indicates a stronger equity position, which can provide a cushion in times of economic uncertainty or downturns.

Overall, the decreasing debt-to-equity ratio for Abbott Laboratories reflects a positive trajectory in the company's financial leverage and capital structure, indicating improved financial health and stability over the past five years.