ABTNEUTRAL

Return on Equity (ROE)

12.5%

Higher than 54% of Healthcare sector peers

Updated 1928h ago

Sector Performance

54th percentile

ABT

12.5%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Abbott Laboratories' Return on Equity (ROE) of 12.5% measures how much profit the company generates for each dollar of shareholders' equity—essentially, how efficiently it uses investor capital.

This figure sits above the healthcare sector median of 11.1%, placing ABT in the 59th percentile among peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. A combination of an above-median level and zero trend indicates the company consistently earns a respectable return but shows no improvement or deterioration, implying a moderate risk profile with limited upside catalyst from profitability gains. This stable, above-average ROE supports the overall NEUTRAL verdict, as it reflects solid performance without momentum to drive a more bullish or bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ABT?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ABT's Return on Equity (ROE) compare to its sector?

ABT's Return on Equity (ROE) of 12.5% compares to a Healthcare sector median of 8.9%, placing it in the 54th percentile.

Who are ABT's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.