Stock Analysis on Net

Abbott Laboratories (NYSE:ABT) 

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Abbott Laboratories, profitability ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Return on Sales
Gross profit margin 50.93% 50.28% 51.54% 52.21% 50.49%
Operating profit margin 16.27% 16.15% 19.16% 19.56% 15.48%
Net profit margin 31.95% 14.27% 15.88% 16.42% 12.99%
Return on Investment
Return on equity (ROE) 28.12% 14.83% 18.90% 19.75% 13.71%
Return on assets (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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Abbott Laboratories gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Abbott Laboratories operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Abbott Laboratories net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

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

Gross Profit Margin

Abbott Laboratories, gross profit margin 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)
Gross profit 21,366 20,168 22,498 22,491 17,473
Net sales 41,950 40,109 43,653 43,075 34,608
Profitability Ratio
Gross profit margin1 50.93% 50.28% 51.54% 52.21% 50.49%
Benchmarks
Gross Profit Margin, Competitors2
Cigna Group 10.15% 12.37% 12.44% 12.41% 14.43%
CVS Health Corp. 13.29% 14.94% 16.62% 17.48% 18.01%
Elevance Health Inc. 15.92% 16.79% 16.79% 17.09% 19.71%
Intuitive Surgical Inc. 67.46% 66.39% 67.44% 69.32% 65.65%
Medtronic PLC 65.34% 65.67% 67.98% 65.19% 67.41%
UnitedHealth Group Inc. 21.31% 23.64% 24.09% 23.60% 25.62%

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
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 21,366 ÷ 41,950 = 50.93%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Abbott Laboratories gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Operating Profit Margin

Abbott Laboratories, operating profit margin 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)
Operating earnings 6,825 6,478 8,362 8,425 5,357
Net sales 41,950 40,109 43,653 43,075 34,608
Profitability Ratio
Operating profit margin1 16.27% 16.15% 19.16% 19.56% 15.48%
Benchmarks
Operating Profit Margin, Competitors2
Cigna Group 3.83% 4.40% 4.69% 4.60% 5.12%
CVS Health Corp. 2.30% 3.85% 2.41% 4.54% 5.19%
Elevance Health Inc. 4.16% 4.47% 4.94% 5.15% 4.97%
Intuitive Surgical Inc. 28.12% 24.80% 25.35% 31.89% 24.09%
Medtronic PLC 15.89% 17.56% 18.15% 14.89% 16.57%
UnitedHealth Group Inc. 8.17% 8.80% 8.83% 8.40% 8.76%
Operating Profit Margin, Sector
Health Care Equipment & Services 5.66% 6.51% 6.41% 6.93% 7.08%
Operating Profit Margin, Industry
Health Care 9.19% 9.87% 13.87% 13.77% 10.81%

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
Operating profit margin = 100 × Operating earnings ÷ Net sales
= 100 × 6,825 ÷ 41,950 = 16.27%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Abbott Laboratories operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Net Profit Margin

Abbott Laboratories, net profit margin 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 earnings 13,402 5,723 6,933 7,071 4,495
Net sales 41,950 40,109 43,653 43,075 34,608
Profitability Ratio
Net profit margin1 31.95% 14.27% 15.88% 16.42% 12.99%
Benchmarks
Net Profit Margin, Competitors2
Cigna Group 1.40% 2.66% 3.72% 3.11% 5.31%
CVS Health Corp. 1.24% 2.34% 1.29% 2.72% 2.68%
Elevance Health Inc. 3.41% 3.52% 3.87% 4.46% 3.78%
Intuitive Surgical Inc. 27.81% 25.24% 21.25% 29.85% 24.33%
Medtronic PLC 11.36% 12.03% 15.90% 11.97% 16.56%
UnitedHealth Group Inc. 3.65% 6.09% 6.25% 6.06% 6.03%
Net Profit Margin, Sector
Health Care Equipment & Services 3.77% 4.56% 4.74% 5.08% 5.27%
Net Profit Margin, Industry
Health Care 6.24% 8.47% 10.73% 11.32% 8.06%

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
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 13,402 ÷ 41,950 = 31.95%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Abbott Laboratories net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Return on Equity (ROE)

Abbott Laboratories, ROE 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 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%
Benchmarks
ROE, Competitors2
Cigna Group 8.37% 11.17% 14.86% 11.39% 16.81%
CVS Health Corp. 6.11% 10.91% 5.84% 10.54% 10.35%
Elevance Health Inc. 14.47% 15.23% 16.59% 16.93% 13.77%
Intuitive Surgical Inc. 14.13% 13.51% 11.98% 14.32% 10.90%
Medtronic PLC 7.32% 7.30% 9.59% 7.01% 9.44%
UnitedHealth Group Inc. 15.55% 25.22% 25.87% 24.09% 23.52%
ROE, Sector
Health Care Equipment & Services 13.11% 15.01% 15.22% 14.90% 14.75%
ROE, Industry
Health Care 14.41% 18.07% 22.47% 22.98% 16.02%

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

2 Click competitor name to see calculations.

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

Return on Assets (ROA)

Abbott Laboratories, ROA 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 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%
Benchmarks
ROA, Competitors2
Cigna Group 2.20% 3.38% 4.63% 3.46% 5.44%
CVS Health Corp. 1.82% 3.34% 1.82% 3.39% 3.11%
Elevance Health Inc. 5.12% 5.50% 5.86% 6.26% 5.28%
Intuitive Surgical Inc. 12.39% 11.64% 10.19% 12.58% 9.50%
Medtronic PLC 4.09% 4.13% 5.54% 3.87% 5.28%
UnitedHealth Group Inc. 4.83% 8.18% 8.19% 8.15% 7.81%
ROA, Sector
Health Care Equipment & Services 4.72% 5.51% 5.59% 5.58% 5.44%
ROA, Industry
Health Care 5.03% 6.47% 8.43% 8.29% 5.45%

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

2 Click competitor name to see calculations.

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