Stock Analysis on Net

Abbott Laboratories (NYSE:ABT) 

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Abbott Laboratories, ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,601 5,289 6,718 7,014 4,838
Invested capital2 60,065 59,651 61,288 62,076 60,387
Performance Ratio
ROIC3 9.32% 8.87% 10.96% 11.30% 8.01%
Benchmarks
ROIC, Competitors4
Cigna Group 5.96% 5.63% 8.53% 6.88% 9.84%
CVS Health Corp. 4.04% 7.07% 3.13% 7.01% 6.63%
Elevance Health Inc. 8.97% 9.21% 10.24% 11.26% 8.37%
Intuitive Surgical Inc. 28.75% 22.30% 22.01% 37.63% 25.62%
Medtronic PLC 5.44% 5.89% 7.02% 5.59% 6.20%
UnitedHealth Group Inc. 9.54% 14.59% 13.68% 13.51% 13.84%

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 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 5,601 ÷ 60,065 = 9.32%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Abbott Laboratories ROIC deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Decomposition of ROIC

Abbott Laboratories, decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2024 9.32% = 17.23% × 0.70 × 77.50%
Dec 31, 2023 8.87% = 16.84% × 0.67 × 78.33%
Dec 31, 2022 10.96% = 20.24% × 0.71 × 76.03%
Dec 31, 2021 11.30% = 20.37% × 0.69 × 79.95%
Dec 31, 2020 8.01% = 16.05% × 0.57 × 87.08%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2024 year is the increase in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Abbott Laboratories, OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,601 5,289 6,718 7,014 4,838
Add: Cash operating taxes2 1,626 1,463 2,118 1,759 718
Net operating profit before taxes (NOPBT) 7,226 6,753 8,836 8,772 5,556
 
Net sales 41,950 40,109 43,653 43,075 34,608
Profitability Ratio
OPM3 17.23% 16.84% 20.24% 20.37% 16.05%
Benchmarks
OPM, Competitors4
Cigna Group 2.75% 3.57% 5.39% 4.69% 7.72%
CVS Health Corp. 2.10% 3.78% 2.45% 4.32% 4.79%
Elevance Health Inc. 5.46% 5.32% 5.64% 6.58% 5.88%
Intuitive Surgical Inc. 32.39% 28.14% 26.19% 33.56% 28.14%
Medtronic PLC 17.14% 19.63% 19.15% 16.48% 17.88%
UnitedHealth Group Inc. 6.31% 9.14% 9.13% 8.33% 9.15%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 7,226 ÷ 41,950 = 17.23%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Abbott Laboratories OPM deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Turnover of Capital (TO)

Abbott Laboratories, TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net sales 41,950 40,109 43,653 43,075 34,608
Invested capital1 60,065 59,651 61,288 62,076 60,387
Efficiency Ratio
TO2 0.70 0.67 0.71 0.69 0.57
Benchmarks
TO, Competitors3
Cigna Group 3.02 2.26 2.09 1.90 1.70
CVS Health Corp. 2.82 2.65 2.60 2.22 1.96
Elevance Health Inc. 2.24 2.44 2.33 2.14 2.13
Intuitive Surgical Inc. 1.07 1.00 1.16 1.27 0.98
Medtronic PLC 0.47 0.44 0.46 0.42 0.41
UnitedHealth Group Inc. 1.99 2.01 1.95 2.04 1.96

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 Invested capital. See details »

2 2024 Calculation
TO = Net sales ÷ Invested capital
= 41,950 ÷ 60,065 = 0.70

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Abbott Laboratories TO deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Effective Cash Tax Rate (CTR)

Abbott Laboratories, CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 5,601 5,289 6,718 7,014 4,838
Add: Cash operating taxes2 1,626 1,463 2,118 1,759 718
Net operating profit before taxes (NOPBT) 7,226 6,753 8,836 8,772 5,556
Tax Rate
CTR3 22.50% 21.67% 23.97% 20.05% 12.92%
Benchmarks
CTR, Competitors4
Cigna Group 28.08% 30.27% 24.44% 23.01% 24.93%
CVS Health Corp. 31.66% 29.40% 50.90% 27.09% 29.36%
Elevance Health Inc. 26.66% 29.13% 22.01% 20.22% 33.27%
Intuitive Surgical Inc. 17.42% 20.94% 27.40% 11.76% 6.67%
Medtronic PLC 32.75% 32.28% 19.53% 18.59% 14.72%
UnitedHealth Group Inc. 24.04% 20.64% 23.25% 20.32% 22.88%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,626 ÷ 7,226 = 22.50%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Abbott Laboratories CTR decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.