Stock Analysis on Net
Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Abbott Laboratories, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 81,414 73,214 74,438 75,196 72,548
Less: Goodwill 23,108 23,679 22,799 23,231 23,744
Total assets (adjusted) 58,306 49,535 51,639 51,965 48,804
Adjustment to Total Abbott Shareholders’ Investment
Total Abbott shareholders’ investment (as reported) 47,664 38,603 36,686 35,802 32,784
Less: Goodwill 23,108 23,679 22,799 23,231 23,744
Total Abbott shareholders’ investment (adjusted) 24,556 14,924 13,887 12,571 9,040

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Abbott Laboratories, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Abbott Laboratories, adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.52 0.55 0.59 0.57 0.48
Adjusted total asset turnover 0.72 0.81 0.85 0.83 0.71
Financial Leverage
Reported financial leverage 1.71 1.90 2.03 2.10 2.21
Adjusted financial leverage 2.37 3.32 3.72 4.13 5.40
Return on Equity (ROE)
Reported ROE 28.12% 14.83% 18.90% 19.75% 13.71%
Adjusted ROE 54.58% 38.35% 49.92% 56.25% 49.72%
Return on Assets (ROA)
Reported ROA 16.46% 7.82% 9.31% 9.40% 6.20%
Adjusted ROA 22.99% 11.55% 13.43% 13.61% 9.21%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Abbott Laboratories adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Abbott Laboratories adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Abbott Laboratories adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Abbott Laboratories adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Abbott Laboratories, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales 41,950 40,109 43,653 43,075 34,608
Total assets 81,414 73,214 74,438 75,196 72,548
Activity Ratio
Total asset turnover1 0.52 0.55 0.59 0.57 0.48
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 41,950 40,109 43,653 43,075 34,608
Adjusted total assets 58,306 49,535 51,639 51,965 48,804
Activity Ratio
Adjusted total asset turnover2 0.72 0.81 0.85 0.83 0.71

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 41,950 ÷ 81,414 = 0.52

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 41,950 ÷ 58,306 = 0.72

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Abbott Laboratories adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 81,414 73,214 74,438 75,196 72,548
Total Abbott shareholders’ investment 47,664 38,603 36,686 35,802 32,784
Solvency Ratio
Financial leverage1 1.71 1.90 2.03 2.10 2.21
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 58,306 49,535 51,639 51,965 48,804
Adjusted total Abbott shareholders’ investment 24,556 14,924 13,887 12,571 9,040
Solvency Ratio
Adjusted financial leverage2 2.37 3.32 3.72 4.13 5.40

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Total Abbott shareholders’ investment
= 81,414 ÷ 47,664 = 1.71

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Abbott shareholders’ investment
= 58,306 ÷ 24,556 = 2.37

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Abbott Laboratories adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings 13,402 5,723 6,933 7,071 4,495
Total Abbott shareholders’ investment 47,664 38,603 36,686 35,802 32,784
Profitability Ratio
ROE1 28.12% 14.83% 18.90% 19.75% 13.71%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 13,402 5,723 6,933 7,071 4,495
Adjusted total Abbott shareholders’ investment 24,556 14,924 13,887 12,571 9,040
Profitability Ratio
Adjusted ROE2 54.58% 38.35% 49.92% 56.25% 49.72%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net earnings ÷ Total Abbott shareholders’ investment
= 100 × 13,402 ÷ 47,664 = 28.12%

2 Adjusted ROE = 100 × Net earnings ÷ Adjusted total Abbott shareholders’ investment
= 100 × 13,402 ÷ 24,556 = 54.58%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Abbott Laboratories adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings 13,402 5,723 6,933 7,071 4,495
Total assets 81,414 73,214 74,438 75,196 72,548
Profitability Ratio
ROA1 16.46% 7.82% 9.31% 9.40% 6.20%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings 13,402 5,723 6,933 7,071 4,495
Adjusted total assets 58,306 49,535 51,639 51,965 48,804
Profitability Ratio
Adjusted ROA2 22.99% 11.55% 13.43% 13.61% 9.21%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 13,402 ÷ 81,414 = 16.46%

2 Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 13,402 ÷ 58,306 = 22.99%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Abbott Laboratories adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.