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.
Peer comparison
Dec 31, 2023