Abbott Laboratories (ABT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.71 | 1.87 | 1.86 | 1.87 | 1.90 | 1.92 | 1.97 | 0.99 | 2.03 | 2.04 | 2.03 | 2.09 | 2.10 | 2.14 | 2.17 | 2.17 | 2.21 | 2.20 | 2.25 | 2.21 |
Abbott Laboratories has consistently maintained a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio has consistently remained at 0.00 over the past several years, indicating that the company's total debt level is negligible in relation to its total assets. This suggests a low financial risk for the company as it is not heavily reliant on debt to finance its operations.
Similarly, the Debt-to-capital ratio has also remained stable at 0.00, implying that Abbott's total debt is not significant in comparison to its total capital, which includes both debt and equity. This demonstrates a strong capital structure and indicates that the company has a good balance between debt and equity financing.
The Debt-to-equity ratio has consistently stayed at 0.00, reflecting that Abbott Laboratories has no debt in proportion to its equity. This signifies that the company is not highly leveraged and has a strong ownership stake relative to its debt obligations.
The Financial leverage ratio has shown a declining trend over the years, starting at 2.21 in March 2020 and decreasing to 1.71 by December 2024. This reduction indicates that Abbott has been gradually decreasing its reliance on debt to finance its operations and has been strengthening its financial position by reducing its financial leverage.
In conclusion, Abbott Laboratories maintains a robust solvency position with minimal debt levels in relation to its assets, capital, and equity. The company's decreasing financial leverage ratio further reflects its prudent financial management and commitment to maintaining a strong solvency profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Abbott Laboratories has shown a generally positive trend over the past few years. It stood at 8.80 as of March 31, 2020, indicating that the company's operating income was nearly 9 times higher than its interest expenses, providing a comfortable buffer to meet its interest obligations.
The ratio slightly decreased to 8.14 by June 30, 2020, but then began a steady increase, reaching 22.68 by September 30, 2022, and peaking at 22.48 by June 30, 2022. This upward trend suggests that Abbott Laboratories had a significantly higher ability to cover its interest payments during this period.
However, the interest coverage ratio experienced a decline after June 30, 2022, dropping to 18.08 by December 31, 2022. The ratio further declined to 10.00 by December 31, 2023, before recovering slightly in the following periods.
Overall, the interest coverage ratio for Abbott Laboratories reflects a strong ability to meet its interest obligations during most of the periods analyzed. Investors and creditors typically view a higher interest coverage ratio as a positive indicator of a company's financial health and ability to manage its debt burden effectively.