Assessing the Financial Performance and Its Impact on Merger Acquisition
Prof. John Coon
Abbott Laboratories Ratio Analysis
The Abbott Laboratories company has been operating for about 131 years, was founded in 1888 by Wallace Calvin Abbott. It was first built to known drugs then, it starting growing to sell research based drugs, medical devices diagnostics and nutritional products. Abbott has grown throughout the years, its medical test and diagnostic instruments systems are used worldwide by hospitals, laboratories, clinics to diagnose many diseases that have help many individuals better their health. In 2017, Abbott revenues were $27.39 billion.
The ratio analysis for Abbott will help to understand whether the profitable trends were favorable or unfavorable. In the year 2018 Abbott revenue was $30.59 billion from 2017 to 2018 there was a 3.2 billion increase in revenue. From the total revenue in 2018 to the cost of revenue (12,706,000) it gives Abbot a gross profit margin of $17,872,000.00. According to Miles D. White, chairman and chief executive office of Abbott. We achieved another quarter of strong growth and our new product pipeline continues to be highly productive. In spite of increasing currency headwinds, were well position to achieve the upper end of our initial full-year guidance. Looking back from 2016 revenue of $20,853,000.00 to 2018s revenue we can see that it has increased and not only revenue but the profitability. The gross profit of the company is important when analyzing the profitability and financial performance of the company. This is what helps the company manage using the labor and supplies of the production. Abbott has become such a favorable trend because it has been increasing over the years, not only are the profits rising but Abbott has improved in delivering what they say to their consumers. According to (Zack, 2018) Clearly recent earnings estimate revisions suggest that good things are ahead for Abbott Laboratories, and that a beat might be in the cards for the upcoming report. Johnson and Johnson Ration Analysis
Abbott Reports Third-Quarter 2018 Results. (n.d.). Retrieved from Equity Research. (2019, March 05). Why Abbott Laboratories (ABT) Might Surprise This Earnings Season. Retrieved March 04, 2019, from