Part Three

Using the Information in Financial Statements

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In this part of the course project, you will use the Abbott Laboratories (ABT) most recent Annual Report 2020 (10-K)

https://www.abbottinvestor.com/static-files/52cadf21-4090-40fd-9857-fa58e1e25949

https://sec.report/Document/0001104659-21-025751/

to calculate financial statement ratios utilizing the information in the financial statement and supplementary data section. Use the Financial Ratio Development Tool, provided on the Project Part Three page within the course, for assistance with step.Once again, begin by opening a browser window to access the Abbott Laboratories Investors page to view the most recent Annual Report (10-K).Scroll about halfway through until you find the Financial Report section and complete the tasks below.

1.Find the ABT Balance Sheet and Income Statement information.In the space provided below, enter the following figures:

a.Sales

b.Net Income

c.Total Assets

d.Total Equity

Note that some items might be classified using slightly different names.For instance, you will find that Net Income will be called Net Earnings.

2020 Annual Report

A.Net Sales

B.Net Income

C.Total Assets

D.Total Equity

2.Use the space below to list the following ratios using the numbers you found in question #1.Utilize the Financial Ratio Development Tool, provided on the Project Part Three page within the course, for help with the calculations.

a.Net Profit Margin (NI / Sales)

b.Total Asset Turnover (Sales / Total Assets)

c.Return on Assets (TAT x NPM)

d.Leverage (Total Assets/ Total Equity)

e.Return on Equity (ROA x Leverage)

3.Once again, access the ABT Investors Page and this time, locate the Annual Report for the previous year 2019.Find the same five ratios (a-e below) for the previous year, utilizing the Financial Ratio Development Tool for help with the calculations.

a.Net Profit Margin (NI / Sales)

b.Total Asset Turnover (Sales / Total Assets)

c.Return on Assets (TAT x NPM)

d.Leverage (Total Assets/ Total Equity)

e.Return on Equity (ROA x Leverage)

4.Explain how asset turnover, net margin and leverage numbers changed from the year before. Do you think ABT's financial health has improved or declined over the past year?