Abbott Laboratories

Abbott’s balance sheet is very strong. As of 2024 the company had only about $14B total debt (including short-term portion) against $7.6B cash and over $81B in assets. Net of cash, debt is modest ($6–7B). Interest coverage and credit metrics are excellent.

Operating cash flow ($8.6B in 2024) easily covers debt service and dividend obligations ($3.8B dividend, $0.9B interest in 2024). There are no near-term debt maturities that appear problematic. The company weathered the 2020 pandemic and early-2020s nutritional recall without distress.

Liquidity flows even higher in stress due to consumers stockpiling essentials (though the Michigan plant closure hurt sales, Abbott has since recovered volume). Financial flexibility is evident (Abbott raised capital in the 2010s to buy St. Jude – and successfully integrated it).

In worst-case scenarios (e.g. global recession) Abbott can dial back share buybacks or capital spending to preserve strength. Given negligible bankruptcy risk and a fortress balance sheet, we give a high score (85) on financial strength.