Abbott Laboratories (ABT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 73,214,000 | 74,438,000 | 75,196,000 | 72,548,000 | 67,887,000 |
| Total stockholders’ equity | US$ in thousands | 38,603,000 | 36,686,000 | 35,802,000 | 32,784,000 | 31,088,000 |
| Financial leverage ratio | 1.90 | 2.03 | 2.10 | 2.21 | 2.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $73,214,000K ÷ $38,603,000K
= 1.90
The financial leverage ratio for Abbott Laboratories has shown a gradual decrease over the past five years, indicating an improving trend in the company's leverage position. The ratio decreased from 2.18 in 2019 to 1.90 in 2023. A lower financial leverage ratio suggests that the company is relying less on debt to finance its operations and growth, which can be viewed positively by investors and lenders. Abbott Laboratories' decreasing leverage ratio may indicate enhanced financial stability and decreased risk of default. This trend suggests that the company may be managing its capital structure efficiently and reducing its financial risk exposure over time.
Peer comparison
Dec 31, 2023