Abbott Laboratories (ABT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 81,414,000 | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 |
| Total stockholders’ equity | US$ in thousands | 47,664,000 | 38,603,000 | 36,686,000 | 35,802,000 | 32,784,000 |
| Financial leverage ratio | 1.71 | 1.90 | 2.03 | 2.10 | 2.21 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $81,414,000K ÷ $47,664,000K
= 1.71
The financial leverage ratio of Abbott Laboratories has shown a decreasing trend over the past five years. It decreased from 2.21 as of December 31, 2020, to 1.71 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been gradually declining. A lower financial leverage ratio suggests that Abbott Laboratories is using less debt relative to its equity, which can indicate a stronger financial position and lower financial risk. Overall, the decreasing trend in the financial leverage ratio is a positive signal for the company's financial health and stability.
Peer comparison
Dec 31, 2024