Abbott Laboratories (BSP:ABTT34) ROCE %

: 13.15% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Abbott Laboratories's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.15%.

Abbott Laboratories ROCE % Historical Data

The historical data trend for Abbott Laboratories's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Abbott Laboratories Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

8.47

10.39

14.91

14.08

11.92

Abbott Laboratories Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																9.96	11.57	11.71	12.56	13.15

Abbott Laboratories ROCE % Calculation

Abbott Laboratories's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	35773.44	/	( ( (390457.085 - 81246.001)	+	(358733.957 - 67818.132) )	/ 2 )
	=	35773.44	/	( (309211.084	+	290915.825)	/ 2 )
	=	35773.44	/	300063.4545
	=	11.92 %

Abbott Laboratories's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	38296.836	/	( ( (356030.883 - 64410.525)	+	(358733.957 - 67818.132) )	/ 2 )
	=	38296.836	/	( ( 291620.358	+	290915.825 )	/ 2 )
	=	38296.836	/	291268.0915
	=	13.15 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Abbott Laboratories (BSP:ABTT34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Abbott Laboratories ROCE % Related Terms

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Abbott Laboratories (BSP:ABTT34) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

ABT:USA ABT:Mexico 0Q15:UK ABL:Germany ABT:Chile ABT:Switzerland ABT:Austria ABT:Argentina

Address

100 Abbott Park Road, Abbott Park, IL, USA, 60064-6400

Website

https://www.abbottinvestor.com

Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives approximately 60% of sales outside the United States.

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