Abbott Laboratories (ABT)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,656,000 | 7,531,000 | 7,194,000 | 7,038,000 | 7,132,000 | 6,549,000 | 6,652,000 | 7,457,000 | 8,839,000 | 10,319,000 | 11,061,000 | 10,538,000 | 9,703,000 | 9,434,000 | 8,267,000 | 7,035,000 | 5,665,000 | 4,492,000 | 4,298,000 | 4,833,000 |
| Interest expense (ttm) | US$ in thousands | 397,000 | 496,000 | 520,000 | 621,000 | 713,000 | 632,000 | 552,000 | 525,000 | 489,000 | 455,000 | 492,000 | 483,000 | 490,000 | 497,000 | 501,000 | 503,000 | 500,000 | 512,000 | 528,000 | 549,000 |
| Interest coverage | 19.28 | 15.18 | 13.83 | 11.33 | 10.00 | 10.36 | 12.05 | 14.20 | 18.08 | 22.68 | 22.48 | 21.82 | 19.80 | 18.98 | 16.50 | 13.99 | 11.33 | 8.77 | 8.14 | 8.80 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $7,656,000K ÷ $397,000K
= 19.28
The interest coverage ratio for Abbott Laboratories has shown a generally increasing trend over the past few years, starting at 8.80 in March 2020 and peaking at 22.68 in September 2022. This indicates the company's ability to comfortably meet its interest obligations from its operating income.
However, there was a slight decline in the ratio in the subsequent quarters, dropping to 10.00 by December 2023. This could signal a potential increase in the company's debt burden or a decrease in operating income during that period.
Despite the dip, Abbott Laboratories managed to improve its interest coverage ratio again, reaching 19.28 by December 2024. This suggests that the company regained its ability to cover its interest payments adequately.
Overall, Abbott Laboratories has demonstrated a strong interest coverage ratio over the analyzed periods, indicating a healthy financial position and sound management of its debt obligations.
Peer comparison
Dec 31, 2024