ABTAbbott Laboratories
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.9×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 16% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ABT?
Abbott Laboratories earns 7.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.6 points below what the capital costs: growth destroys value
- Operating margin
- 16%
Operating margin · Medical Devices median 0.61% · 12 months to Q2 2026
- Cash conversion
- 1.87×
Cash conversion · 1.52× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.45%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 15% |
| FY2021 | 20% |
| FY2022 | 19% |
| FY2023 | 16% |
| FY2024 | 16% |
| FY2025 | 18% |
Details›
- Gross margin12 months to Q2 2026
- 57%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 12%
- Free cash flow margin
- 17%
- R&D as % of revenue
- 6.8%
- Revenue, trailing twelve months
- $46.6B
- Free cash flow, trailing twelve months
- $7.82B
- Net income, trailing twelve months
- $5.42B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Devices
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