Abbott LaboratoriesABT -0.04%80 Interest Coverage is 7.73 as of Mar. 2026, which is 23% below its 10-year median of 9.99. GuruFocus rates ABT with a GF Score™ of 80/100 and a GF Value™ of $129.49 (Significantly Undervalued). Among 468 Medical Devices & Instruments companies, Abbott Laboratories ranks worse than 51.71% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Abbott Laboratories's
Operating Income
for the
three
months ended in Mar. 2026 was $1,345 Mil. Abbott Laboratories's Interest Expense for the
three
months ended in Mar. 2026 was $-174 Mil.
Abbott Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 7.73.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Abbott Laboratories's Interest Coverage or its related term are showing as below:
ABT'
s Interest Coverage Range Over the Past 10 Years
Min: 1.73 Med: 9.99 Max: 16.33
Current: 14.38
ABT's Interest Coverage is ranked worse than 51.71% of 468
companies
in the Medical Devices & Instruments industry
Industry Median: 15.71
vs ABT: 14.38
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Abbott Laboratories Interest Coverage Related Terms
Abbott Laboratories Interest Coverage Historical Data
* Premium members only.
The historical data trend for Abbott Laboratories's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ABT vs SYK, MDT, BSX: Interest Coverage Comparison
For the Medical Devices subindustry, Abbott Laboratories's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Abbott Laboratories Interest Coverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Abbott Laboratories (ABT) has a Interest Coverage of 7.73 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Abbott Laboratories and its competitors. This is 23% below median its historical median of 9.99. Over the past decade, Abbott Laboratories' Interest Coverage has ranged from 1.73 to 16.33. According to the industry distribution chart, Abbott Laboratories ranks #242 out of 468 companies in the Medical Devices & Instruments industry, placing it in the top 51.7%.
Is Abbott Laboratories' Interest Coverage too high?
Abbott Laboratories' current Interest Coverage of 7.73 is 23% below median its 10-year median of 9.99. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 16.33. The Medical Devices & Instruments industry median Interest Coverage is 15.71. Abbott Laboratories' value of 7.73 is 50.8% below this industry median. Based on the distribution chart, Abbott Laboratories ranks #242 out of 468 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Abbott Laboratories has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott Laboratories' Interest Coverage compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #242 out of 468 companies for Interest Coverage. This places Abbott Laboratories in the lower half of its industry. The industry median Interest Coverage is 15.71. Abbott Laboratories' value of 7.73 is 50.8% below this benchmark. Historically, Abbott Laboratories' own Interest Coverage has ranged from 1.73 to 16.33 over the past decade. While the company's 10-year median is 9.99 vs. the industry median of 15.71, Abbott Laboratories has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Devices & Instruments company?
The median Interest Coverage among Medical Devices & Instruments companies is 15.71, based on 468 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott Laboratories's current Interest Coverage of 7.73 is 50.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Abbott Laboratories and its competitors. For the Medical Devices & Instruments industry, the median Interest Coverage is 15.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott Laboratories's current Interest Coverage is 7.73, which is 23% below median its own 10-year median of 9.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Abbott Laboratories (ABT) is currently considered Significantly Undervalued. The stock's GF Value™ is $129.49, compared to a current price of $90.49 — trading 30.1% below its estimated fair value. The current Interest Coverage is 7.73, which is 23% below median its 10-year median of 9.99 and 50.8% below the Medical Devices & Instruments industry median of 15.71. Abbott Laboratories' overall GF Score™ is 80/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Abbott Laboratories (ABT), the current Interest Coverage is 7.73 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Abbott Laboratories (ABT) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott Laboratories stock appears to be undervalued.
The current stock price of $90.49 is trading 30.1% below its estimated GF Value™ of $129.49.
GuruFocus considers Abbott Laboratories to be Significantly Undervalued.
Key valuation signals for ABT:
Interest Coverage: 7.73 (23% below median its 10-year median of 9.99)
GF Value™: $129.49 vs. price of $90.49 (30.1% below fair value)
Industry Position: 50.8% below the Medical Devices & Instruments median (#242 of 468)
No single metric tells the full story. See the ABT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 roughly 60% of sales outside the United States.
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