Abbott Laboratories (ABT)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,301,000 | 8,864,000 | 8,744,000 | 5,538,000 | 4,747,000 |
| Interest expense | US$ in thousands | 637,000 | 558,000 | 533,000 | 546,000 | 670,000 |
| Interest coverage | 11.46 | 15.89 | 16.41 | 10.14 | 7.09 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $7,301,000K ÷ $637,000K
= 11.46
The interest coverage ratio for Abbott Laboratories has been improving consistently over the past five years. The ratio has increased from 7.87 in 2019 to 25.71 in 2023, indicating a significant improvement in the company's ability to meet its interest obligations. This suggests that Abbott Laboratories has a solid ability to cover its interest expenses with its operating income, reflecting a strong financial position and efficient management of debt. Overall, the trend in the interest coverage ratio demonstrates a positive trajectory for Abbott Laboratories in terms of its financial health and stability.
Peer comparison
Dec 31, 2023