Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Abbott Laboratories, solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Abbott Laboratories debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Abbott Laboratories debt to equity ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Abbott Laboratories debt to capital ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Abbott Laboratories debt to capital ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Abbott Laboratories debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Abbott Laboratories debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Abbott Laboratories financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Abbott Laboratories interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Abbott Laboratories fixed charge coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Debt to Equity
Abbott Laboratories, debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Cigna Group | 0.78 | 0.67 | 0.69 | 0.71 | 0.65 | |
| CVS Health Corp. | 0.88 | 0.81 | 0.74 | 0.75 | 0.93 | |
| Elevance Health Inc. | 0.76 | 0.64 | 0.66 | 0.64 | 0.60 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.50 | 0.47 | 0.46 | 0.51 | 0.49 | |
| UnitedHealth Group Inc. | 0.83 | 0.70 | 0.74 | 0.64 | 0.66 | |
| Debt to Equity, Sector | ||||||
| Health Care Equipment & Services | 0.67 | 0.62 | 0.62 | 0.62 | 0.66 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.87 | 0.81 | 0.72 | 0.79 | 0.90 | |
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 2024 Calculation
Debt to equity = Total debt ÷ Total Abbott shareholders’ investment
= 14,125 ÷ 47,664 = 0.30
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Abbott Laboratories debt to equity ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Equity (including Operating Lease Liability)
Abbott Laboratories, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| Total debt | 14,125) | 14,679) | 16,773) | 18,050) | 18,747) | |
| Operating lease liability, current (included in Other accrued liabilities) | 254) | 245) | 230) | 245) | 241) | |
| Operating lease liability, non-current | 896) | 949) | 943) | 956) | 902) | |
| Total debt (including operating lease liability) | 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 | ||||||
| Debt to equity (including operating lease liability)1 | 0.32 | 0.41 | 0.49 | 0.54 | 0.61 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Cigna Group | 0.78 | 0.68 | 0.70 | 0.73 | 0.67 | |
| CVS Health Corp. | 1.10 | 1.04 | 1.00 | 1.01 | 1.23 | |
| Elevance Health Inc. | 0.78 | 0.66 | 0.69 | 0.67 | 0.63 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.52 | 0.49 | 0.48 | 0.53 | 0.51 | |
| UnitedHealth Group Inc. | 0.88 | 0.76 | 0.80 | 0.70 | 0.73 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.74 | 0.69 | 0.70 | 0.70 | 0.75 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.92 | 0.86 | 0.78 | 0.84 | 0.96 | |
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 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Abbott shareholders’ investment
= 15,275 ÷ 47,664 = 0.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Abbott Laboratories debt to equity ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Capital
Abbott Laboratories, debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| 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) | |
| Total capital | 61,789) | 53,282) | 53,459) | 53,852) | 51,531) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.23 | 0.28 | 0.31 | 0.34 | 0.36 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Cigna Group | 0.44 | 0.40 | 0.41 | 0.42 | 0.40 | |
| CVS Health Corp. | 0.47 | 0.45 | 0.42 | 0.43 | 0.48 | |
| Elevance Health Inc. | 0.43 | 0.39 | 0.40 | 0.39 | 0.38 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.33 | 0.32 | 0.31 | 0.34 | 0.33 | |
| UnitedHealth Group Inc. | 0.45 | 0.41 | 0.43 | 0.39 | 0.40 | |
| Debt to Capital, Sector | ||||||
| Health Care Equipment & Services | 0.40 | 0.38 | 0.38 | 0.38 | 0.40 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.45 | 0.42 | 0.44 | 0.47 | |
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 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,125 ÷ 61,789 = 0.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Abbott Laboratories debt to capital ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Capital (including Operating Lease Liability)
Abbott Laboratories, debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| Total debt | 14,125) | 14,679) | 16,773) | 18,050) | 18,747) | |
| Operating lease liability, current (included in Other accrued liabilities) | 254) | 245) | 230) | 245) | 241) | |
| Operating lease liability, non-current | 896) | 949) | 943) | 956) | 902) | |
| Total debt (including operating lease liability) | 15,275) | 15,873) | 17,946) | 19,251) | 19,890) | |
| Total Abbott shareholders’ investment | 47,664) | 38,603) | 36,686) | 35,802) | 32,784) | |
| Total capital (including operating lease liability) | 62,939) | 54,476) | 54,632) | 55,053) | 52,674) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.24 | 0.29 | 0.33 | 0.35 | 0.38 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Cigna Group | 0.44 | 0.40 | 0.41 | 0.42 | 0.40 | |
| CVS Health Corp. | 0.52 | 0.51 | 0.50 | 0.50 | 0.55 | |
| Elevance Health Inc. | 0.44 | 0.40 | 0.41 | 0.40 | 0.39 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.34 | 0.33 | 0.32 | 0.35 | 0.34 | |
| UnitedHealth Group Inc. | 0.47 | 0.43 | 0.45 | 0.41 | 0.42 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.43 | 0.41 | 0.41 | 0.41 | 0.43 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.48 | 0.46 | 0.44 | 0.46 | 0.49 | |
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 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 15,275 ÷ 62,939 = 0.24
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Abbott Laboratories debt to capital ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Assets
Abbott Laboratories, debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| Total debt | 14,125) | 14,679) | 16,773) | 18,050) | 18,747) | |
| Total assets | 81,414) | 73,214) | 74,438) | 75,196) | 72,548) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.17 | 0.20 | 0.23 | 0.24 | 0.26 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Cigna Group | 0.21 | 0.20 | 0.22 | 0.22 | 0.21 | |
| CVS Health Corp. | 0.26 | 0.25 | 0.23 | 0.24 | 0.28 | |
| Elevance Health Inc. | 0.27 | 0.23 | 0.23 | 0.24 | 0.23 | |
| Intuitive Surgical Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Medtronic PLC | 0.28 | 0.27 | 0.27 | 0.28 | 0.27 | |
| UnitedHealth Group Inc. | 0.26 | 0.23 | 0.23 | 0.22 | 0.22 | |
| Debt to Assets, Sector | ||||||
| Health Care Equipment & Services | 0.24 | 0.23 | 0.23 | 0.23 | 0.24 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.30 | 0.29 | 0.27 | 0.28 | 0.31 | |
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 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,125 ÷ 81,414 = 0.17
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Abbott Laboratories debt to assets ratio improved from 2022 to 2023 and from 2023 to 2024. |
Debt to Assets (including Operating Lease Liability)
Abbott Laboratories, debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | —) | —) | —) | —) | 213) | |
| Current portion of long-term debt | 1,500) | 1,080) | 2,251) | 754) | 7) | |
| Long-term debt, excluding current portion | 12,625) | 13,599) | 14,522) | 17,296) | 18,527) | |
| Total debt | 14,125) | 14,679) | 16,773) | 18,050) | 18,747) | |
| Operating lease liability, current (included in Other accrued liabilities) | 254) | 245) | 230) | 245) | 241) | |
| Operating lease liability, non-current | 896) | 949) | 943) | 956) | 902) | |
| Total debt (including operating lease liability) | 15,275) | 15,873) | 17,946) | 19,251) | 19,890) | |
| Total assets | 81,414) | 73,214) | 74,438) | 75,196) | 72,548) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.19 | 0.22 | 0.24 | 0.26 | 0.27 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Cigna Group | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | |
| CVS Health Corp. | 0.33 | 0.32 | 0.31 | 0.33 | 0.37 | |
| Elevance Health Inc. | 0.27 | 0.24 | 0.24 | 0.25 | 0.24 | |
| Intuitive Surgical Inc. | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | |
| Medtronic PLC | 0.29 | 0.28 | 0.27 | 0.29 | 0.28 | |
| UnitedHealth Group Inc. | 0.27 | 0.25 | 0.25 | 0.24 | 0.24 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Health Care Equipment & Services | 0.27 | 0.25 | 0.26 | 0.26 | 0.28 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.32 | 0.31 | 0.29 | 0.30 | 0.33 | |
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 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 15,275 ÷ 81,414 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Abbott Laboratories debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. |
Financial Leverage
Abbott Laboratories, financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Cigna Group | 3.80 | 3.30 | 3.21 | 3.29 | 3.09 | |
| CVS Health Corp. | 3.35 | 3.27 | 3.21 | 3.10 | 3.32 | |
| Elevance Health Inc. | 2.83 | 2.77 | 2.83 | 2.70 | 2.61 | |
| Intuitive Surgical Inc. | 1.14 | 1.16 | 1.17 | 1.14 | 1.15 | |
| Medtronic PLC | 1.79 | 1.77 | 1.73 | 1.81 | 1.79 | |
| UnitedHealth Group Inc. | 3.22 | 3.08 | 3.16 | 2.96 | 3.01 | |
| Financial Leverage, Sector | ||||||
| Health Care Equipment & Services | 2.78 | 2.72 | 2.72 | 2.67 | 2.71 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.86 | 2.79 | 2.67 | 2.77 | 2.94 | |
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 2024 Calculation
Financial leverage = Total assets ÷ Total Abbott shareholders’ investment
= 81,414 ÷ 47,664 = 1.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Abbott Laboratories financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024. |
Interest Coverage
Abbott Laboratories, interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 13,402) | 5,723) | 6,933) | 7,071) | 4,495) | |
| Less: Net earnings from discontinued operations, net of taxes | —) | —) | —) | —) | 24) | |
| Add: Income tax expense | (6,389) | 941) | 1,373) | 1,140) | 497) | |
| Add: Interest expense | 559) | 637) | 558) | 533) | 546) | |
| Earnings before interest and tax (EBIT) | 7,572) | 7,301) | 8,864) | 8,744) | 5,514) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 13.55 | 11.46 | 15.89 | 16.41 | 10.10 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Cigna Group | 4.51 | 4.94 | 7.43 | 6.22 | 8.76 | |
| CVS Health Corp. | 3.08 | 5.20 | 3.46 | 5.16 | 4.36 | |
| Elevance Health Inc. | 7.67 | 8.49 | 10.13 | 10.93 | 8.96 | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | 7.73 | 9.43 | 10.98 | 5.21 | 4.71 | |
| UnitedHealth Group Inc. | 6.14 | 9.97 | 13.59 | 14.44 | 13.47 | |
| Interest Coverage, Sector | ||||||
| Health Care Equipment & Services | 5.98 | 8.03 | 9.31 | 8.96 | 7.89 | |
| Interest Coverage, Industry | ||||||
| Health Care | 5.70 | 7.09 | 12.71 | 12.24 | 7.71 | |
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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 7,572 ÷ 559 = 13.55
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Abbott Laboratories interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Fixed Charge Coverage
Abbott Laboratories, fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 13,402) | 5,723) | 6,933) | 7,071) | 4,495) | |
| Less: Net earnings from discontinued operations, net of taxes | —) | —) | —) | —) | 24) | |
| Add: Income tax expense | (6,389) | 941) | 1,373) | 1,140) | 497) | |
| Add: Interest expense | 559) | 637) | 558) | 533) | 546) | |
| Earnings before interest and tax (EBIT) | 7,572) | 7,301) | 8,864) | 8,744) | 5,514) | |
| Add: Operating lease cost | 366) | 356) | 355) | 359) | 329) | |
| Earnings before fixed charges and tax | 7,938) | 7,657) | 9,219) | 9,103) | 5,843) | |
| Interest expense | 559) | 637) | 558) | 533) | 546) | |
| Operating lease cost | 366) | 356) | 355) | 359) | 329) | |
| Fixed charges | 925) | 993) | 913) | 892) | 875) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.58 | 7.71 | 10.10 | 10.21 | 6.68 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Cigna Group | 4.51 | 4.64 | 6.87 | 5.61 | 7.84 | |
| CVS Health Corp. | 2.14 | 3.15 | 2.16 | 3.03 | 2.75 | |
| Elevance Health Inc. | 6.93 | 7.51 | 8.82 | 8.48 | 6.10 | |
| Intuitive Surgical Inc. | 79.87 | 74.09 | 63.52 | 93.66 | 58.48 | |
| Medtronic PLC | 5.88 | 6.90 | 7.79 | 4.31 | 3.98 | |
| UnitedHealth Group Inc. | 4.78 | 7.27 | 8.77 | 8.80 | 8.51 | |
| Fixed Charge Coverage, Sector | ||||||
| Health Care Equipment & Services | 4.49 | 5.67 | 6.11 | 5.87 | 5.31 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 4.66 | 5.52 | 9.02 | 8.67 | 5.70 | |
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 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,938 ÷ 925 = 8.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Abbott Laboratories fixed charge coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |