Stock Analysis on Net

Abbott Laboratories (NYSE:ABT)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Abbott Laboratories, short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 3.02 2.74 3.10 3.59 2.99
Receivables turnover 6.06 6.11 7.02 6.64 5.40
Payables turnover 4.46 4.19 4.15 4.21 3.80
Working capital turnover 4.42 4.54 4.48 3.87 4.06
Average No. Days
Average inventory processing period 121 133 118 102 122
Add: Average receivable collection period 60 60 52 55 68
Operating cycle 181 193 170 157 190
Less: Average payables payment period 82 87 88 87 96
Cash conversion cycle 99 106 82 70 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Abbott Laboratories inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Abbott Laboratories receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Abbott Laboratories payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Abbott Laboratories working capital turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Abbott Laboratories number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Abbott Laboratories operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Abbott Laboratories number of days of payables outstanding decreased from 2022 to 2023 and from 2023 to 2024.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Abbott Laboratories cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Inventory Turnover

Abbott Laboratories, inventory turnover 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)
Cost of products sold, excluding amortization of intangible assets 18,706 17,975 19,142 18,537 15,003
Inventories 6,194 6,570 6,173 5,157 5,012
Short-term Activity Ratio
Inventory turnover1 3.02 2.74 3.10 3.59 2.99
Benchmarks
Inventory Turnover, Competitors2
Cigna Group 27.27 23.70 26.13 31.58 32.70
CVS Health Corp. 17.75 16.83 14.05 13.52 11.88
Intuitive Surgical Inc. 1.83 1.96 2.27 2.98 2.49
Medtronic PLC 2.15 2.03 2.20 2.43 2.23
Inventory Turnover, Sector
Health Care Equipment & Services 24.63 22.70 21.14 21.50 18.93
Inventory Turnover, Industry
Health Care 10.67 10.01 10.11 10.19 9.16

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
Inventory turnover = Cost of products sold, excluding amortization of intangible assets ÷ Inventories
= 18,706 ÷ 6,194 = 3.02

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Abbott Laboratories inventory turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Receivables Turnover

Abbott Laboratories, receivables turnover 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
Trade receivables, less allowances 6,925 6,565 6,218 6,487 6,414
Short-term Activity Ratio
Receivables turnover1 6.06 6.11 7.02 6.64 5.40
Benchmarks
Receivables Turnover, Competitors2
Cigna Group 15.60 17.06 18.64 19.35 19.47
CVS Health Corp. 10.16 10.12 11.79 11.91 12.32
Elevance Health Inc. 18.00 18.08 18.81 20.66 19.72
Intuitive Surgical Inc. 6.82 6.30 6.60 7.30 6.75
Medtronic PLC 5.28 5.21 5.71 5.51 6.22
UnitedHealth Group Inc. 17.66 17.27 18.22 20.07 19.86
Receivables Turnover, Sector
Health Care Equipment & Services 12.67 12.57 13.78 14.11 14.06
Receivables Turnover, Industry
Health Care 8.86 8.54 9.25 9.09 9.09

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
Receivables turnover = Net sales ÷ Trade receivables, less allowances
= 41,950 ÷ 6,925 = 6.06

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Abbott Laboratories receivables turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

Abbott Laboratories, payables turnover 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)
Cost of products sold, excluding amortization of intangible assets 18,706 17,975 19,142 18,537 15,003
Trade accounts payable 4,195 4,295 4,607 4,408 3,946
Short-term Activity Ratio
Payables turnover1 4.46 4.19 4.15 4.21 3.80
Benchmarks
Payables Turnover, Competitors2
Cigna Group 6.41 6.75 7.31 7.68 7.75
CVS Health Corp. 20.22 20.36 18.07 19.14 19.72
Elevance Health Inc. 8.10 7.72 7.47 7.59 7.75
Intuitive Surgical Inc. 14.05 12.69 13.78 14.45 18.35
Medtronic PLC 4.65 4.03 4.46 4.98 4.72
UnitedHealth Group Inc. 7.72 7.47 7.26 7.63 7.29
Payables Turnover, Sector
Health Care Equipment & Services 9.18 9.23 8.99 9.35 9.36
Payables Turnover, Industry
Health Care 7.77 7.77 7.48 7.62 7.51

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
Payables turnover = Cost of products sold, excluding amortization of intangible assets ÷ Trade accounts payable
= 18,706 ÷ 4,195 = 4.46

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Abbott Laboratories payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024.

Working Capital Turnover

Abbott Laboratories, working capital turnover 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)
Current assets 23,656 22,670 25,224 24,239 20,441
Less: Current liabilities 14,157 13,841 15,489 13,105 11,907
Working capital 9,499 8,829 9,735 11,134 8,534
 
Net sales 41,950 40,109 43,653 43,075 34,608
Short-term Activity Ratio
Working capital turnover1 4.42 4.54 4.48 3.87 4.06
Benchmarks
Working Capital Turnover, Competitors2
Cigna Group
CVS Health Corp.
Elevance Health Inc. 7.85 7.83 8.37 7.23 6.39
Intuitive Surgical Inc. 1.56 1.14 1.29 1.22 0.77
Medtronic PLC 2.90 2.47 2.97 2.15 2.48
UnitedHealth Group Inc.
Working Capital Turnover, Sector
Health Care Equipment & Services 900.07 415.26 169.58 62.36 83.81
Working Capital Turnover, Industry
Health Care 25.24 20.96 19.09 14.05 14.19

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
Working capital turnover = Net sales ÷ Working capital
= 41,950 ÷ 9,499 = 4.42

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Abbott Laboratories working capital turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Average Inventory Processing Period

Abbott Laboratories, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 3.02 2.74 3.10 3.59 2.99
Short-term Activity Ratio (no. days)
Average inventory processing period1 121 133 118 102 122
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Cigna Group 13 15 14 12 11
CVS Health Corp. 21 22 26 27 31
Intuitive Surgical Inc. 200 186 161 122 147
Medtronic PLC 170 180 166 150 164
Average Inventory Processing Period, Sector
Health Care Equipment & Services 15 16 17 17 19
Average Inventory Processing Period, Industry
Health Care 34 36 36 36 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).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.02 = 121

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Abbott Laboratories number of days of inventory outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Average Receivable Collection Period

Abbott Laboratories, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 6.06 6.11 7.02 6.64 5.40
Short-term Activity Ratio (no. days)
Average receivable collection period1 60 60 52 55 68
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Cigna Group 23 21 20 19 19
CVS Health Corp. 36 36 31 31 30
Elevance Health Inc. 20 20 19 18 19
Intuitive Surgical Inc. 54 58 55 50 54
Medtronic PLC 69 70 64 66 59
UnitedHealth Group Inc. 21 21 20 18 18
Average Receivable Collection Period, Sector
Health Care Equipment & Services 29 29 26 26 26
Average Receivable Collection Period, Industry
Health Care 41 43 39 40 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).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.06 = 60

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Abbott Laboratories, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 121 133 118 102 122
Average receivable collection period 60 60 52 55 68
Short-term Activity Ratio
Operating cycle1 181 193 170 157 190
Benchmarks
Operating Cycle, Competitors2
Cigna Group 36 36 34 31 30
CVS Health Corp. 57 58 57 58 61
Intuitive Surgical Inc. 254 244 216 172 201
Medtronic PLC 239 250 230 216 223
Operating Cycle, Sector
Health Care Equipment & Services 44 45 43 43 45
Operating Cycle, Industry
Health Care 75 79 75 76 80

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 cycle = Average inventory processing period + Average receivable collection period
= 121 + 60 = 181

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Abbott Laboratories operating cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Average Payables Payment Period

Abbott Laboratories, average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 4.46 4.19 4.15 4.21 3.80
Short-term Activity Ratio (no. days)
Average payables payment period1 82 87 88 87 96
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Cigna Group 57 54 50 48 47
CVS Health Corp. 18 18 20 19 19
Elevance Health Inc. 45 47 49 48 47
Intuitive Surgical Inc. 26 29 26 25 20
Medtronic PLC 78 91 82 73 77
UnitedHealth Group Inc. 47 49 50 48 50
Average Payables Payment Period, Sector
Health Care Equipment & Services 40 40 41 39 39
Average Payables Payment Period, Industry
Health Care 47 47 49 48 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.46 = 82

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Abbott Laboratories number of days of payables outstanding decreased from 2022 to 2023 and from 2023 to 2024.

Cash Conversion Cycle

Abbott Laboratories, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 121 133 118 102 122
Average receivable collection period 60 60 52 55 68
Average payables payment period 82 87 88 87 96
Short-term Activity Ratio
Cash conversion cycle1 99 106 82 70 94
Benchmarks
Cash Conversion Cycle, Competitors2
Cigna Group -21 -18 -16 -17 -17
CVS Health Corp. 39 40 37 39 42
Intuitive Surgical Inc. 228 215 190 147 181
Medtronic PLC 161 159 148 143 146
Cash Conversion Cycle, Sector
Health Care Equipment & Services 4 5 2 4 6
Cash Conversion Cycle, Industry
Health Care 28 32 26 28 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 121 + 6082 = 99

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Abbott Laboratories cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.