Introduction
Abbott has four reportable segments: Established Pharmaceuticals, Diagnostics, Nutritional Products, and Medical Devices.
Asset Structure Analysis
Abbott’s total assets were $73.2 billion as of December 31, 2023, down from $74.4 billion as of December 31, 2022.
Abbott’s asset structure as of December 31, 2023
Deferred income saxes and other assets were $7.1 billion, accounting for 9.7% of total assets.
Goodwill was $23.68 billion, making up 32.3% of total assets.
Intangible assets were $8.8 billion, constituting 12% of total assets.
Property and equipment, net were $10.15 billion, composing 13.9% of total assets.
Total current assets were $22.67 billion, accounting for 31% of total assets.
Of total current assets, inventories were $6.57 billion, accounts receivable were $6.57 billion, and cash and cash equivalents were $6.9 billion.
Liquidity and Solvency Analysis
Total current liabilities were $13.84 billion as of December 31, 2023.
The current ratio was 1.64.
Long-term debt was $13.6 billion as of December 31, 2023.
Abbott’s balance sheet was very healthy.
Profitability Analysis
Abbott’s net sales were $40.1 billion, $43.65 billion and $43 billion in 2023, 2022 and 2021, respectively.
After the COVID-19 pandemic ends, Abbott’s performance in 2023 decline.
Operating profit was $6.48 billion, $8.36 billion and $8.43 billion in 2023, 2022 and 2021, respectively.
The operating profit margin was 16.2%, 19.2% and 19.6% in 2023, 2022 and 2021, respectively.
Net income was $5.72 billion, $6.93 billion and $7.07 billion in 2023, 2022 and 2021, respectively.
Cash Flow Analysis
Net cash from operating activities was $7.26 billion, $9.58 billion and $10.53 billion in 2023, 2022 and 2021, respectively.
Purchases of property and equipment were $2.2 billion, $1.78 billion and $1.89 billion in 2023, 2022 and 2021, respectively.
Free cash flow was $5.06 billion, $7.8 billion and $8.64 billion in 2023, 2022 and 2021, respectively.
Abbott returned capital to its shareholders through stock repurchases and dividends.
Repurchases of common stock were $1.23 billion, $3.8 billion and $2.3 billion in 2023, 2022 and 2021, respectively.
Dividends were $3.56 billion, $3.31 billion and $3.2 billion in 2023, 2022 and 2021, respectively.
For the six months ended June 30, 2024, Abbott’s operating results are as follows:
Abbott’ net sales were $20.34 billion and $19.73 billion in the six months ended to June 30, 2024 and the six months ended to June 30, 2023.
In the six months ended to June 30, 2024, Abbott’s net sales were up 3.1% year-on-year.
Net income was $2.53 billion and $2.7 billion in the six months ended to June 30, 2024 and the six months ended to June 30, 2023, respectively.
Conclusion
Abbott’s debt is not high and it still has potential for external mergers and acquisitions.
Abbott stock price is $109.76 per share, which is equivalent to $190.97 billion of market price.
We reckon that Abbott’s reasonable valuation is about $80 billion.
Disclaimer: The content is for reference only and does not constitute investment advice.
