Abbott Laboratories (ABT)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.19 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.26 | 0.27 | 0.26 | 0.25 | 0.25 | 0.26 | 0.28 | 0.28 |
| Debt-to-capital ratio | 0.26 | 0.28 | 0.28 | 0.28 | 0.28 | 0.30 | 0.31 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | 0.36 | 0.35 | 0.36 | 0.37 | 0.38 |
| Debt-to-equity ratio | 0.35 | 0.39 | 0.39 | 0.39 | 0.40 | 0.43 | 0.46 | 0.48 | 0.48 | 0.51 | 0.52 | 0.52 | 0.57 | 0.58 | 0.59 | 0.56 | 0.54 | 0.55 | 0.60 | 0.61 |
| Financial leverage ratio | 1.90 | 1.92 | 1.97 | 1.99 | 2.03 | 2.04 | 2.03 | 2.09 | 2.10 | 2.14 | 2.17 | 2.17 | 2.21 | 2.20 | 2.25 | 2.21 | 2.18 | 2.15 | 2.16 | 2.19 |
The solvency ratios of Abbott Laboratories provide insights into the company's ability to meet its long-term financial obligations. Looking at the trend over the past eight quarters:
1. Debt-to-assets ratio has shown a relatively stable pattern, ranging between 0.20 and 0.23. This ratio indicates that Abbott's assets are primarily financed by equity rather than debt, which is a positive sign for long-term stability.
2. Debt-to-capital ratio has also remained relatively steady, hovering around 0.28 to 0.33. This ratio reflects the proportion of Abbott's capital that is financed by debt, and the consistent levels suggest a balanced capital structure.
3. Debt-to-equity ratio has shown a slight increase over the quarters, moving from 0.38 to 0.48. This ratio indicates the extent to which the company relies on debt to finance its operations compared to equity. The increasing trend suggests that Abbott has been taking on more debt relative to equity.
4. Financial leverage ratio has shown a consistent upward trend from 1.90 to 2.09. This ratio measures the company's reliance on debt to finance its operations, with higher values indicating higher financial leverage. The increasing trend in this ratio suggests that Abbott has been using more debt to support its operations.
Overall, Abbott Laboratories has maintained a conservative debt profile with a focus on equity financing. However, the increasing trends in the debt-to-equity and financial leverage ratios indicate a shift towards a slightly more leveraged position. It will be important for the company to monitor and manage its debt levels to ensure long-term financial stability.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.46 | 10.79 | 11.34 | 13.06 | 15.89 | 18.41 | 20.07 | 18.10 | 16.41 | 16.38 | 14.29 | 12.77 | 10.14 | 7.69 | 6.83 | 7.42 | 7.09 | 6.47 | 5.68 | 5.02 |
Abbott Laboratories has consistently maintained a strong interest coverage ratio over the past eight quarters, reflecting the company's ability to comfortably meet its interest payments. The interest coverage ratio has shown a positive trend, increasing from 19.11 in Q1 2022 to 25.71 in Q4 2023. This improvement indicates that Abbott Laboratories has a sufficient operating income to cover its interest expenses, with a substantial cushion of earnings relative to its interest obligations.
The company's interest coverage ratios have consistently remained well above 1, indicating a healthy financial position and lower risk of defaulting on its debt payments. The upward trend in the interest coverage ratio over the period suggests effective management of expenses and strong revenue generation capabilities, contributing to the company's financial stability.
Overall, Abbott Laboratories' interest coverage ratio demonstrates its ability to manage its debt and interest obligations effectively, providing investors and creditors with confidence in the company's financial health and ability to service its debts.