Stock Analysis on Net

Abbott Laboratories (NYSE:ABT) 

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 81,414 73,214 74,438 75,196 72,548
Adjustment to Total Debt
Total debt (as reported) 14,125 14,679 16,773 18,050 18,747
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Operating lease liability, current (included in Other accrued liabilities) 254 245 230 245 241
Add: Operating lease liability, non-current 896 949 943 956 902
Total debt (adjusted) 15,275 15,873 17,946 19,251 19,890

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).

1, 2 Equal to total present value of future operating lease payments.


Abbott Laboratories, Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (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 Turnover1
Reported total asset turnover 0.52 0.55 0.59 0.57 0.48
Adjusted total asset turnover 0.52 0.55 0.59 0.57 0.48
Debt to Equity2
Reported debt to equity 0.30 0.38 0.46 0.50 0.57
Adjusted debt to equity 0.32 0.41 0.49 0.54 0.61
Return on Assets3 (ROA)
Reported ROA 16.46% 7.82% 9.31% 9.40% 6.20%
Adjusted ROA 16.46% 7.82% 9.31% 9.40% 6.20%

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 debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Abbott Laboratories adjusted debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024.
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 Operating Leases
Selected Financial Data (US$ in millions)
Net sales 41,950 40,109 43,653 43,075 34,608
Adjusted total assets 81,414 73,214 74,438 75,196 72,548
Activity Ratio
Adjusted total asset turnover2 0.52 0.55 0.59 0.57 0.48

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 ÷ 81,414 = 0.52

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 Debt to Equity

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 debt 14,125 14,679 16,773 18,050 18,747
Total Abbott shareholders’ investment 47,664 38,603 36,686 35,802 32,784
Solvency Ratio
Debt to equity1 0.30 0.38 0.46 0.50 0.57
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 15,275 15,873 17,946 19,251 19,890
Total Abbott shareholders’ investment 47,664 38,603 36,686 35,802 32,784
Solvency Ratio
Adjusted debt to equity2 0.32 0.41 0.49 0.54 0.61

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 Debt to equity = Total debt ÷ Total Abbott shareholders’ investment
= 14,125 ÷ 47,664 = 0.30

2 Adjusted debt to equity = Adjusted total debt ÷ Total Abbott shareholders’ investment
= 15,275 ÷ 47,664 = 0.32

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Abbott Laboratories adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

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 Operating Leases
Selected Financial Data (US$ in millions)
Net earnings 13,402 5,723 6,933 7,071 4,495
Adjusted total assets 81,414 73,214 74,438 75,196 72,548
Profitability Ratio
Adjusted ROA2 16.46% 7.82% 9.31% 9.40% 6.20%

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 ÷ 81,414 = 16.46%

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.