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ABT (Abbott Laboratories) Interest Coverage : 28.78 (As of Jun. 2024)


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What is Abbott Laboratories Interest Coverage?

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 Jun. 2024 was $1,669 Mil. Abbott Laboratories's Interest Expense for the three months ended in Jun. 2024 was $-58 Mil. Abbott Laboratories's interest coverage for the quarter that ended in Jun. 2024 was 28.78. 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: 20.35
Current: 20.35


ABT's Interest Coverage is ranked better than
53.48% of 417 companies
in the Medical Devices & Instruments industry
Industry Median: 17.9 vs ABT: 20.35

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Abbott Laboratories Interest Coverage Historical Data

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.

* Premium members only.

Abbott Laboratories Interest Coverage Chart

Abbott Laboratories Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.76 9.81 15.81 14.99 10.17

Abbott Laboratories Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.92 11.19 22.72 28.78 36.45

Competitive Comparison of Abbott Laboratories's Interest Coverage

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's Interest Coverage Distribution in the 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.



Abbott Laboratories Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Abbott Laboratories's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Abbott Laboratories's Interest Expense was $-637 Mil. Its Operating Income was $6,478 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,548 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*6478/-637
=10.17

Abbott Laboratories's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Abbott Laboratories's Interest Expense was $-58 Mil. Its Operating Income was $1,669 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,139 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*1669/-58
=28.78

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Abbott Laboratories  (NYSE:ABT) Interest Coverage Explanation

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

Thank you for viewing the detailed overview of Abbott Laboratories's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Abbott Laboratories Business Description

Address
100 Abbott Park Road, Abbott Park, IL, USA, 60064-6400
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.
Executives
Robert B Ford officer: Senior Vice President 100 ABBOTT PARK ROAD, AP6A-2, D-032L, ABBOTT PARK IL 60064-6092
Mccoy John A. Jr. officer: VICE PRESIDENT C/O ABBOTT LABORATORIES, 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Robert E Funck officer: Vice President, Controller 100 ABBOTT PARK ROAD, D-378, AP6D-2, ABBOTT PARK IL 60064-6092
Lisa D Earnhardt officer: Executive Vice President 1555 ADAMS DRIVE, C/O INTERSECT ENT, INC., MENLO PARK CA 94025
Salvadori Daniel Gesua Sive officer: Senior Vice President 100 ABBOTT PARK ROAD, AP6A-2, D-032L, ABBOTT PARK IL 60064-6092
Mary K Moreland officer: Executive Vice President 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Hubert L Allen officer: Executive Vice President 100 ABBOTT PARK ROAD, AP6C-1N, ABBOTT PARK IL 60064-6092
Louis H. Morrone officer: EXECUTIVE VICE PRESIDENT 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Andrea F Wainer officer: Executive Vice President 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Daniel J Starks director ONE ST JUDE MEDICAL DRIVE, ST PAUL MN 55117
Michael F Roman director 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST. PAUL MN 55144-1000
Patricia Paola Gonzalez director 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Philip P Boudreau officer: Vice President 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064
Michael O'grady director 50 S LASALLE STREET, CHICAGO IL 60603
Gregory A Ahlberg officer: Senior Vice President 100 ABBOTT PARK ROAD, ABBOTT PARK IL 60064