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					About Abbott
Serving Global Health Care Needs




Investor Relations


 Abbott Laboratories (ABT) is a broad-based health care company that discovers, develops, manufactures and mar
 care – from prevention and diagnosis to treatment and cure. Abbott's principal businesses are global pharmaceut
 diagnostics and cardiovascular devices. Headquartered in north suburban Chicago, Abbott serves customers in mo
 nearly 90,000 at more than 100 manufacturing, distribution, research and development, and other locations arou

 The principal market for Abbott’s common shares is the New York Stock Exchange. Shares are also listed on the Ch
 and electronic exchanges. Outside the United States, Abbott’s shares are listed on the London Stock Exchange and




Fast Facts
Chairman and CEO:                                 Miles D. White
Corporate Headquarters:                           North suburban Chicago, Illinois, USA
Stock Exchange Listing:                           New York [ABT: NYSE]
Number of Employees:                              Nearly 90,000 worldwide
2010 Revenue:                                     $35.2 billion
2010 R&D Investment:                              $3.7 billion

Facilities:                                       More than 100 worldwide
Pharmaceutical                                    Abbott Park and North Chicago, Illinois, USA
Research Centers:                                     Worcester, Massachusetts, USA

                                                      Ludwigshafen, Germany
Countries Where                                       More than 130

Products are Sold:




Primary Businesses
Medical Products – Key lines of business include vascular, laboratory and molecular diagnostics, vision care and d

Nutritional Products – Abbott offers a variety of nutrition products for infants, children, active adults and patients w

Pharmaceuticals – Key therapeutic areas include immunology, cardiology and infectious diseases
manufactures and markets products and services that span the continuum of
                                                                              Stock
are global pharmaceuticals, nutritional and medical products, including
                                                                              Quote
 erves customers in more than 130 countries, with an employee base of
 d other locations around the world.

re also listed on the Chicago Stock Exchange and traded on various regional
on Stock Exchange and the Swiss Stock Exchange.
stics, vision care and diabetes

e adults and patients with special dietary needs
Annual Reports




       2010 Annual
       Reports

        2010 Annual
        Report -
        Interactive
        2010 Annual
        Report

        2011 Proxy
        Statement

        2011 Fact
        Book




       2009 Annual
       Reports
 2009 Annual
 Report -
 Interactive
 2009 Annual
 Report

 2010 Proxy
 Statement

 2010 Fact
 Book




2008 Annual
Reports

 2008 Annual
 Report -
 Interactive
 2008 Annual
 Report

 2009 Proxy
 Statement

 2009 Fact
 Book
                                             FINANCIAL STATEMENTS




                                                             2010     2009    2008
Short term solvency ratios
Current Ratio                                                 1.29    1.79    1.47
Quick Ratio                                                   1.11    1.54    1.23
Cash Ratio                                                    0.33    0.76    0.44
Net Working Capital to Current Liabilities                    0.29    0.79    0.47

Asset Utilization or Turnover ratios
Average Collection Period                                     73.54   76.55   66.64
Inventory Turnover Ratios                                     11.03    9.42   10.64
Receivable Turnover                                            4.90    4.70    5.40
Fixed Asset Turnover                                           4.41    4.04    4.09
Total Asset Turnover                                           0.59    0.59    0.70

Financial Leverage ratios
Total Debt Ratio (TD/TA)                                      0.62    0.56    0.59
Debt/Equity                                                   1.65    1.29    1.40
Equity Ratio (TE/TA)                                          0.38    0.44    0.42
Long-term Debt Ratio (LTD/TA)                                 0.21    0.21    0.21
Times Interest Earned Ratio (EBIT/TI)                         11.3    14.8    12.1

Profitability ratios
Gross Profit Margin                                           0.58    0.57    0.57
Net Profit Margin                                             0.13    0.19    0.17
ROA (NI/TA)                                                   0.08    0.11    0.12
ROE (NI/TE)                                                   0.21    0.25    0.27

Market value ratios
Price/Earnings Ratio                                          12.6    14.7    17.1




                                                    Page 7
Ratio Analysis of Abbott Laboratories Prepared by: Dimple Gosai
                                                                                                                             Commentary
                                                                                 Abbott Laboratories
Ratio Comparison                                                                                                                                                            Solvency
                                                                                                                                   BMY          Cross -            Time -   Laboratories is financially healthy overall and w
                                                                                                                                                                            company is less liquid and perhaps has much of
                                                                                                                                                                            is perhaps not reflective of the industry and can
                   Ratios                                Formula                        2008          2009          2010          Average       Sectional         Series


Solvency
                                                                                                                                                                            Efficiency
Quick (acid test)                    Current Assets - Inventory/Current Liabilities            1.23          1.54          1.11          1.90     Bad       Variable        On average, Abbot Laboratories has sho
                                                                                                                                                                            consequently underperformed the indus
Current Ratio                        Current Assets/Current Liabilities                        1.47          1.79          1.29          2.12     Bad       Variable        profitability. However, Abbott Laborato


Cash Ratio                           Cash/Current Liabilities                                  0.44          0.76          0.33          1.74     Bad       Variable
Net Working Capital to CL            NWC/Current Liabilities                                   0.47          0.79          0.29          1.12     Bad       OK
Efficiency
                                                                                                                                                                            Financial Leverage
Average Collection Period            Accounts Recievable/(Sales / 360)                     66.64         76.55         73.54          66.30       Bad       Variable        The financial leverage ratios are an indica
                                                                                                                                                                            firm is financially sound, its debt financing
Inventory Turnover                   Total Revenues/Inventory                              10.64             9.42      11.03          13.18       Bad       Variable        Advanced Medical Optics during 2010; as
                                                                                                                                                                            ratio is strong in relation to the industry, s

Receivable Turnover                  Total Revenues/Accounts Receivable                        5.40          4.70          4.90          5.47     Bad       Variable
Fixed Asset Turnover                 Total Revenues/Fixed Assets                               4.09          4.04          4.41          3.73     Good      Variable
Total Asset Turnover                 Total Revenues/Total Assets                               0.70          0.59          0.59          0.61     Bad       Variable
Financial Leverage Ratios
Total Debt Ratio                     Total Debt/Total Assets                                   0.59          0.56          0.62          0.54     Bad       OK
Debt-Equity Ratio                    Total Debt/Total Equity                                   1.40          1.29          1.65          1.16     Bad       OK
Equity Ratio                         Total Equity/Total Assets                                 0.42          0.44          0.38          0.47     Good      Variable
Long-term Debt Ratio (LTD/TA)        Long-term Debt Ratio (LTD/TA)                             0.21          0.21          0.21          0.20     Bad       Variable
Times Interest Earned                EBIT/Total Interest Payments                          12.08         14.84         11.33          22.35       Bad       Variable
Profitability
Gross Profit Margin (GPM)            Gross Profits/Net Operating Income                        0.57          0.57          0.58       0.72        Bad       Variable
Net Profit Margin (NPM)              Net Profits/Net Operating Income                          0.17          0.19          0.13       0.22        Bad       Variable
Return on Total Assets (ROA)         Net Income/Total Assets                                   0.12          0.11          0.08       0.21        Bad       Variable
Return on Equity (ROE)               Net Income/Total Equity                                   0.27          0.25          0.21       0.45        Bad       Variable
Earnings Per Share (EPS)             Net Profit/Number of Shares Outstanding              $17.10        $14.70        $12.63
                                                                                                                                                                                                                                                                                        VALUE LINE




          STUDENT NAME:                                                                                                          ABT          SYMBOL:

                COMPANY:        Abbot Laboratories                                                                               0.60               BETA:

                     DATE:      4/23/2011                                                                                                 $51.80PRICE:
                                                            Abbott Laboratories                                                                                      Commentary

                         YEAR                   2005               2006             2007            2008            2009                    2010



SALES PER SHARE                                $14.51             $14.62           $16.72          $19.40          $19.82                  $22.70
                                                                                                                                                            Sales show continuous growth, a favorable sign for investors as business activity increases in relation to share price.

CASH FLOW PER SHARE                             $3.42              $3.51            $4.05           $4.32           $5.09                   $5.90
                                                                                                                                                            Measurement of the overall strength of the company. Since EPS is a more easily manipulated measure, many analysts assign greater importance to a company’s cash flow per share.

EARNINGS PER SHARE                              $2.50              $2.52            $2.84           $3.03           $3.72                   $4.17           EPS shows an increasing trend, and serves as a measure of Abbott's profitability.
DIVIDENDS PER SHARE                             $1.10              $1.18            $1.30           $1.44           $1.60                   $1.76           Dividends have continued to increase over the 5 year period, and isa sign that Abbotts management believes that the growth can be sustained.
CAP'L SPENDING/SHARE                            $0.78              $0.87            $1.07           $0.85           $0.70                   $0.65           This represents the outlays for plant and equipment for the year expressed on a per-share basis. Abbotts capital spending per share has been semi-stable, supporting sales growth.
BOOK VALUE PER SHARE                            $9.37              $9.14           $11.47          $11.48          $17.73                  $14.45           Other than 2010, the companys shows a desirable trend. If Abbott Laboratories were to decide to dissolve, the book value per share indicates the dollar value remaining for common shareholders after all assets are liquidated and all debtors are paid.
OUTSTANDING SHARES                             1539.2             1537.2           1549.9          1522.4          1551.9                  1548.0           Outstanding shares are the shares in the company held by investors, including resticted shares held by insiders, and the public. An increasing trend can dilute earning investors expect on a per share basis and is therefore not necessarily favorable.
AVG ANN'L P/E RATIO                              18.1                17.9            19.2            18.3              13                    12.2           A measure of a company's current share price compared to its per-share earnings. Usually a higher P/E ratio suggests that investors expect higher earnings growth in the future. It also shows how much an investor is willing to pay per dollar of earnings.Abbotts P/E ratios dipped significantly duing 2009 and 2010.
AVERAGE P/E RATIO                                16.5
AVG ANN'L DIV'D YIELD                           2.40%              2.62%            2.40%           2.60%           3.30%                   3.50%           Abbott has increased the amount it pays out in dividends each year relative to its share price, over the 5yr period.
SALES ($MILL)                                 $22,338            $22,476          $25,914         $29,528         $30,765                 $35,167           Abbott's Sales figures reflect constant positive growth.
OPERATING MARGIN                                27.6%              28.2%            26.2%           25.5%           28.8%                   29.0%           Operating margin measures the company's overall operating efficiency. It is explained by the residual revenue after variable costs. The increasing margin reflects the firms ability to pay it's fixed costs.
DEPRECIATION ($MILL)                         $1,358.9             $1,559           $1,855          $1,839          $2,089                  $2,624           This is simply the expense recorded to allocate cost of a tangible asset over its useful life. It increases free cash flow, while decreasing reported earnings. There is slow increasing trend on one hand is positive as Abbott accumulates assets and gains are normally tax deductable. The negative aspect is that its decreasing impact on reported earnings increasesfrom year to year.
NET PROFIT ($MILL)                          $3,908.50           $3,841.80       $4,429.30       $4,734.20       $5,805.20               $6,500.00           Profits for Abbott Laboratories after income tax obligations reflects an upward trend over the 5 year period.
INCOME TAX RATE (%)                             24.3%              23.5%            19.3%           19.2%           17.0%                   17.0%           The rate at which earnings are taxed have decreased every year in favor of net income.
NET PROFIT MARGIN (%)                           17.5%              17.1%            17.1%           16.0%           18.9%                   18.5%           Measures how much of every dollar of sales a company retains as earnings. A higher profit margin typically indicates a profitable company that has more control over its costs compared to its competitors. Abbott has shwn considerable improvements during 2009 and 2010
WORKING CAP'L ($MILL)                          $3,971              -$669           $4,939          $5,451         $10,264                  $5,500           A measure of both the company's efficiency and its short term financial health. A positive working capital indicates that the company is capable of paying off it's short term liabilities. Abbott's current assets exceed current liabilities and with increasing liquidity is able to meet its short term obligations.
LONG-TERM DEBT(MILL)                           $4,572             $7,010           $9,488          $8,713         $11,266                 $12,524           The gradual increase in long term debt is financing the firms expansionary efforts in alignment with the firms growth objectives.
SHAREHOLDER EQUITY ($MILL)                    $14,415            $14,054          $17,779         $17,480         $22,388                 $24,800           Shareholder's equity accounts for the majority of Abbotts financing.
ROE                                               27%                27%              25%             27%             26%                     26%           The profit the corporation generated with moneys shareholders originally invested stayed relatively constant over the 5yr period.
AVERAGE ROE                                       26%
DIVIDEND PAYOUT RATIO                             43%                46%              44%             46%             42%                     41%           Abbott Laboratories is a mature company and it's earnings are able to support their dividend payments.


CALCULATIONS:
PRICE PER SHARE                               $45.25              $44.75          $48.38          $51.97          $39.39                  $45.38            The increasing numbers provide an optimistic assumption of future growth in the company. Currently the Pps stands at $51.80
OWNERS CASH FLOW ($MILL)

(NI + DEP - CAP'L EXP)                      $4,066.82          $4,063.24        $4,625.81       $5,278.96       $6,808.17               $8,118.20           The owner’s cash flow value is simply net income plus depreciation and less capital expenditures. This value represents the net cash flow to the shareholders once capital expenditures are subtracted.
ANNUAL CF GROWTH RATE                                             -0.09%           13.85%          14.12%          28.97%                  19.24%           The growth rate in cash flows has shown an increasing trend with the exception of 2010.
5 YEAR AVG CF GROWTH                            11.8%                                                                                                       The average is not particularly high, but is expected to increase with with th Cash Flow growth rate


ANNUAL SALES GROWTH                                                0.63%           15.31%          13.97%           4.14%                  14.24%           Although sales in $'s are increasing, the rate of growth appears to be volatile. 2010's increase was significant.
5 YR AVG SALES GROWTH                            9.7%                                                                                                       Although sales are climbing, the growth rate is slowing, which is apparent in 9.7% average over the 5 years.
VALUE ADDED                                             $          (0.22)   $        1.40   $        0.87   $       (3.10)   $               9.36           This value represents the average increase in share price for each $1 retained by the firm, which showed significant improvement in 2010.
AVG. VALUE ADDED                               $1.66                                                                                                        This value represents the average increase in share price for each $1 retained by the firm over the five-year time period.
OWNER'S CF PER SHARE                           $2.64    $           2.64    $        2.98   $        3.47   $        4.39    $               5.24           The average growth of the owner’s cash flow is used to forecast future cash flows to determine the firm’s expected intrinsic value.




                                                                                                                                                                                                                                                                                          Page 9
                                                                                                                                 FORECAST-PESS




                                                       Abbott Laboratories
                                                   INTRINSIC VALUATION MODEL                                                                                                                        Commentary
                                            TWO-STAGE EARNINGS GROWTH PROJECTIONS
                                                       1            2             3           4        5          6       7        8             9   10

PRIOR YEAR CASHFLOW (MILLIONS)                           8,118        8,669         9,256       9,884 10,554  11,269  12,034   12,849    13,721   14,651   The 5-year average cash flow growth rate is used to project the annual cash flow values over the next 10 years that will ultimately be
10-YEAR GROWTH RATE AS DECIMAL (.00)                    6.78%        6.78%         6.78%       6.78%   6.78%   6.78%   6.78%    6.78%     6.78%    6.78%   discounted and used in the determination of the company’s intrinsic value. Abbott Laboratories has a five-year average growth rate of
CASH FLOW                                                8,669        9,256         9,884     10,554  11,269  12,034  12,849   13,721    14,651   15,644
DISCOUNT RATE AS DECIMAL (.00)                           0.15         0.15          0.15        0.15    0.15    0.15    0.15     0.15      0.15     0.15   6.78%. This value is then used as the 10-year growth rate for cash flows that are used in determining the intrinsic value under a “most
DISCOUNT FACTOR (MULTIPLY)                         0.8695652     0.756144     0.6575162     0.57175 0.49718 0.43233 0.37594 0.326902 0.2842624 0.247185    likely”, “pessimistic” and “optimistic” scenario as demonstrated in the following sheets. The total intrinsic value is composed of two sums.
DISCOUNTED VALUE PER ANNUM                             $7,538       $6,999        $6,499      $6,034  $5,603  $5,202  $4,831   $4,485    $4,165   $3,867
                                                                                                                                                           The first calculation for intrinsic value is the discounted ten-year cash flows summed and discounted at the investor specified discount rate.
SUM OF PRESENT VALUE OF CASHFLOWS                  $   55,223                                                                                              In this case, 15% reflects the minimum acceptable rate of return. The second component of intrinsic value is the residual value of cash flows
                                                                                                                                                           beyond ten years with an assumed growth rate of 4% per year. This residual is also discounted at 15%. The most likely scenario is based on a
RESIDUAL VALUE                                                                                                                                             growth rate in owner’s cash flow of the calculated actual growth of 6.78%. The pessimistic and optimistic scenarios represent a plus and
                                                                        10
CASHFLOW IN YEAR 10                                $   15,644
                                                                                                                                                           minus five percent either added to or subtracted from the 6.78% average.
GROWTH RATE AS DECIMAL (.00) (g)                         0.04
                                                                         8
CASHFLOW IN YEAR 11                                $ 16,270                                                                                                Under this pessimistic scenario the total intrinsic value of the firm is divided by the number of shares outstanding resulting in an intrinsic
CAPITALIZATION RATE (k - g)                              0.11                                                                                              value per share of $59.29. Compared to the market price this stock is selling at a discount. With a current market price of $51.80, it is clear
                                                                         6
VALUE AT THE END OF YEAR 10                        $ 147,907
DISCOUNT FACTOR YEAR 10                             0.2471847                                                                                              that Abbott is selling at a bargain price.
                                                                         4
                                                                                                                              ANNUAL SALES                 The statistics are summarized in , the intrinsic/price per share ratio. This ratio expresses the intrinsic value received for each dollar invested.
                                                                                                                              GROWTH
                                                                         2
PRESENT VALUE OF RESIDUAL                          $   36,560                                                                 VALUE ADDED
                                                                                                                                                           As can be seen Abbott yields a ratio of 1.14, which states that for every dollar invested, the intrinsic value is an incredible $1.14! However, in
MARKET VALUE (MILLIONS)                            $   91,783            0                                                                                 order to maintain a buffer and offer the best value, a 1.5 threshold is in place, thus signaling 'a do not buy' on this share.
NUMBER OF SHARES(MILLIONS)                               1548
                                                                              1        2          3   4       5       6
INTRINSIC VALUE PER SHARE              $59.29                           -2
INTRINSIC/MARKET                        1.14
INPUT DISCOUNT AND GROWTH RATES                                         -4
FIRST 10 YEAR GROWTH RATE:                6. 78%
2ND PERIOD GROWTH RATE:                   0. 04
DISCOUNT RATE:                            0. 15
OWNERS CASH FLOW (IN MILLIONS)          8118. 2




                                                                                                                                       Page 10
                                                      Abbott Laboratories
                                                        INTRINSIC VALUATION MODEL
                                                 TWO-STAGE EARNINGS GROWTH PROJECTI

                                                              1            2

PRIOR YEAR CASHFLOW (MILLIONS)                                    8,118      9,075
10-YEAR GROWTH RATE AS DECIMAL (.00)                            11.78%     11.78%
CASH FLOW                                                         9,075     10,143
DISCOUNT RATE AS DECIMAL (.00)                                    0.15       0.15
DISCOUNT FACTOR (MULTIPLY)                                0.869565217 0.75614367
DISCOUNTED VALUE PER ANNUM                                       $7,891     $7,670

SUM OF PRESENT VALUE OF CASHFLOWS                     $           69,673


RESIDUAL VALUE                                                             10
CASHFLOW IN YEAR 10                                   $       24,722
GROWTH RATE AS DECIMAL (.00) (g)                                0.04
                                                                            8
CASHFLOW IN YEAR 11                                   $       25,711
CAPITALIZATION RATE (k - g)                                     0.11
VALUE AT THE END OF YEAR 10                           $      233,739        6
DISCOUNT FACTOR YEAR 10                                 0.247184706
                                                                            4

PRESENT VALUE OF RESIDUAL                             $        57,777
                                                                            2
MARKET VALUE (MILLIONS)                               $       127,449
NUMBER OF SHARES(MILLIONS)                                      1548.0
INTRINSIC VALUE PER SHARE              $     82.33                          0
INTRINSIC/MARKET                               1.59                                  1
INPUT DISCOUNT AND GROWTH RATES                                             -2
FIRST 10 YEAR GROWTH RATE:                  11.78%
2ND PERIOD GROWTH RATE:                      0.04                           -4
DISCOUNT RATE:                               0.15
OWNERS CASH FLOW (IN MILLIONS)             8118.2
Laboratories
SIC VALUATION MODEL
 NINGS GROWTH PROJECTIONS
                       -
               3           4          5         6          7             8         9          10

                 10,143    11,338    12,674     14,167     15,836       17,701     19,786     22,117
                11.78%    11.78%    11.78%     11.78%     11.78%       11.78%     11.78%     11.78%
                 11,338    12,674    14,167     15,836     17,701       19,786     22,117     24,722
                  0.15      0.15      0.15        0.15       0.15         0.15       0.15       0.15
            0.6575162 0.5717532 0.4971767     0.43233    0.37594       0.3269    0.28426    0.24718
                 $7,455    $7,246    $7,043     $6,846     $6,655       $6,468     $6,287     $6,111




                                                               ANNUAL SALES
                                                               GROWTH
                                                               VALUE ADDED

                                                               OWNER'S CF PER
                                                               SHARE


        1          2       3      4       5         6
                                  Commentary




Under the most likely scenario the intrinsic value per share is $82.33.
Compared to the market price of $52.80 this stock is selling at a discount,
signaling a good buy for investors.


We can say with confidence that it is probable for owner's cash flows to grow by
11.7% over a 10yr period. In addition, after studying the thoery of economic
cycles, it is expected that the economy improve within the next 2 years, as a by
product income should increase. With greater spending or savings potential
from consumers, and a larger capital base for Abbott the company will
continue to expand its operations and productline internationally.


The statistics are summarized in , the intrinsic/price per share ratio. This ratio
expresses the intrinsic value received for each dollar invested. As can be seen
Abbott yields a ratio of 1.59, which states that for every dollar invested, the
intrinsic value is an incredible $1.59! However, in order to maintain a buffer
and offer the best value, a 1.5 threshold is in place, thus, under.this senario
investors should purchase ABT!
                                                      Abbott Laboratories
                                                       INTRINSIC VALUATION MODEL
                                                TWO-STAGE EARNINGS GROWTH PROJECTIONS

                                                                 1            2         3

PRIOR YEAR CASHFLOW (MILLIONS)                                  8,118        9,480      11,071
10-YEAR GROWTH RATE AS DECIMAL (.00)                          16.78%       16.78%      16.78%
CASH FLOW                                                       9,480       11,071      12,929
DISCOUNT RATE AS DECIMAL (.00)                                  0.15          0.15        0.15
DISCOUNT FACTOR (MULTIPLY)                              0.869565217       0.75614     0.65752
DISCOUNTED VALUE PER ANNUM                               10    $8,244       $8,371      $8,501

SUM OF PRESENT VALUE OF CASHFLOWS                       $        88,423
                                                            8


RESIDUAL VALUE                                              6
CASHFLOW IN YEAR 10                                     $     38,294
GROWTH RATE AS DECIMAL (.00) (g)                                0.04
                                                          4
CASHFLOW IN YEAR 11                                     $     39,826
CAPITALIZATION RATE (k - g)                                     0.11
VALUE AT THE END OF YEAR 10                             $ 2 362,056
DISCOUNT FACTOR YEAR 10                                 0.247184706
                                                            0
                                                                     1    2       3         4

PRESENT VALUE OF RESIDUAL                               $ -2 89,495
MARKET VALUE (MILLIONS)                                 $    177,918
NUMBER OF SHARES(MILLIONS)                                     1548.0
                                                            -4
INTRINSIC VALUE PER SHARE              $    114.93
INTRINSIC/MARKET                               2.22
INPUT DISCOUNT AND GROWTH RATES
FIRST 10 YEAR GROWTH RATE:                  16.78%
2ND PERIOD GROWTH RATE:                      0.04
DISCOUNT RATE:                               0.15
OWNERS CASH FLOW (IN MILLIONS)             8118.2
ratories
UATION MODEL
GROWTH PROJECTIONS

           4             5           6              7     8          9          10

          12,929         15,098     17,632      20,590    24,045     28,080     32,792
         16.78%         16.78%     16.78%      16.78%    16.78%     16.78%     16.78%
          15,098         17,632     20,590      24,045    28,080     32,792     38,294
            0.15           0.15       0.15        0.15      0.15       0.15       0.15
        0.57175        0.49718    0.43233     0.37594    0.3269    0.28426    0.24718
          $8,633         $8,766     $8,902      $9,040    $9,179     $9,322     $9,466




                             ANNUAL SALES GROWTH
                             VALUE ADDED
                             OWNER'S CF PER SHARE




         5         6
                                     Commentary




The optimistic approach recommends an immediate buy! The intrinsic value per
share is $114.93. Compared to the market price of $52.80 this stock is selling at a
vast discount.


While I prefer to take a conservative approach, there is a probability that optimistic
cash flow growth rate reach 16.78% over a 10yr period. Should Abbott continue to
acquire major drug manufacturers as per 2009, and 2010, they would certainly
magnify revenues and build strong relations with their clients, suppliers, and
investors. Furthermore, we expect Abbott's performance to peak in the booming
economic period that may be nearing. Large investments in Research and
Development are expected to result in new and improved products giving the firm a
competitive advantage and exposing it to new and broader markets .


The statistics are summarized in the intrinsic/price per share ratio. This ratio
expresses the intrinsic value received for each dollar invested. As can be seen
Abbott yields a ratio of 2.22, which states that for every dollar invested, the intrinsic
value is an incredible $2.22!
            DuPont Analysis                                                             2008

                Sales
             $29,527,552
               Cost of         NET INCOME
             Goods Sold                              ABT
             $12,612,022      $4,880,719.00        Net Profit
              Operating                             Margin
 Income       Expenses           SALES              16.53%
Statement   $11,221,691.00    $29,527,552.00         BMY                ABT
                Other                               28.13%           Return on
            Income/Expense                                          Total Assets
               $308,950.00                                             (ROA)
                 Taxes                                                11.51%
             $1,122,070.00       SALES               ABT                BMY
                              $29,527,552.00     T.A. Turnover         17.00%             ABT
               Current                               0.70                              Return on
                Assets       TOTAL ASSETS            BMY                              Equity (ROE)
            $17,042,559.00   $42,419,204.00          0.60                               27.86%
               Net Fixed                                                                 BMY
                Assets                                                                  24.31%
Balance     $25,376,645.00
 Sheet         Current            TOTAL
              Liabilities      LIABILITIES
            $11,591,908.00    $24,900,513.00          ABT
              Long Term                        TOTAL LIABILITIES         ABT
                 Debt        STOCKHOLDERS          +EQUITY           Financial
            $13,308,605.00       EQUITY          $42,419,204.00      Leverage
                              $17,518,691.00          BMY          Multiplier (FLM)
                                                  $44,183.00             2.42
                                                                        BMY
                                                      ABT                1.43
                                               STOCKHOLDERS
                                                    EQUITY
                                                 $17,518,691.00
                                                      BMY
                                                   $30,888.00
            DuPont Analysis                                                             2009
                Sales
             $30,764,707
               Cost of         NET INCOME
             Goods Sold                              ABT
             $13,209,329      $5,745,838.00        Net Profit
              Operating                             Margin
 Income       Expenses           SALES              18.68%
Statement   $11,319,637.00    $30,764,707.00         BMY               ABT
                Other                               64.02%           Return on
            Income/Expense                                          Total Assets
              $958,033.00                                              (ROA)
                 Taxes                                                10.96%
            -$1,447,936.00       SALES               ABT                BMY
                              $30,764,707.00     T.A. Turnover         26.78%             ABT
               Current                               0.59                              Return on
                Assets       TOTAL ASSETS            BMY                              Equity (ROE)
            $23,313,891.00   $52,416,623.00          0.61                               25.09%
              Net Fixed                                                                  BMY
               Assets                                                                   36.96%
Balance     $29,102,732.00
 Sheet         Current           TOTAL
              Liabilities      LIABILITIES
            $13,049,489.00    $29,517,894.00          ABT
              Long Term                        TOTAL LIABILITIES         ABT
                 Debt        STOCKHOLDERS          +EQUITY           Financial
            $16,468,405.00       EQUITY          $52,416,623.00      Leverage
                              $22,898,729.00          BMY          Multiplier (FLM)
                                                  $44,966.00             2.29
                                                                        BMY
                                                      ABT                1.38
                                                STOCKHOLDERS
                                                    EQUITY
                                                 $22,898,729.00
                                                      BMY
                                                   $32,523.00
                                               DuPont 2010




            DuPont Analysis                                                                  2010
                Sales
             $35,166,721
               Cost of         NET INCOME
             Goods Sold                                     ABT
             $14,665,192      $4,626,172.00               Net Profit
              Operating                                    Margin
 Income       Expenses           SALES                     13.15%
Statement     $14,413,948     $35,166,721.00                 BMY             ABT
                Other                                      24.04%         Return on
            Income/Expense                                               Total Assets
               -$374,747                                                    (ROA)
                 Taxes                                                      7.78%
              -$1,086,662        SALES                       ABT             BMY
                              $35,166,721.00           T.A. Turnover        10.56%             ABT
                Current                                      0.59                           Return on
                Assets       TOTAL ASSETS                    BMY                           Equity (ROE)
              $22,317,529    $59,462,266.00                  0.43                            20.58%
               Net Fixed                                                                      BMY
                Assets                                                                       14.47%
Balance       $37,144,737
 Sheet         Current           TOTAL
              Liabilities      LIABILITIES
              $17,262,434     $36,985,802.00               ABT
              Long Term                             TOTAL LIABILITIES         ABT
                 Debt        STOCKHOLDERS               +EQUITY           Financial
              $19,723,368        EQUITY               $59,462,266.00      Leverage
                              $22,476,464.00               BMY          Multiplier (FLM)
                                                       $44,349.00             2.65
                                                                             BMY
                                                           ABT                1.37
                                                     STOCKHOLDERS
                                                         EQUITY
                                                      $22,476,464.00
                                                           BMY
                                                        $32,282.00




                                                Page 20
                                                                          Ticker Symbol:
                                              Abbot Laboratories


GRAHAM ANALYSIS
Variables                                                       Values
            Current Price                                      $51.80
            AAA Yield                                            4.50%
            Average P/E over last 3 Years                         14.50
            Average P/E over last 8 Years                         16.45
            Net Current Assets Per Share                       -647.22
            Total Debt Per Share                           $23,892.64

Group A                                                        Values       Points

#1          Earnings / Price                                       7.2%       0.5


#2          Price / Earnings                                       13.9        0


#3          Price / Book                                           3.14        0


#4          Dividends / Price                                      3.1%        1


#5          Price / Net Current Assets Per Share                -$0.08         0


Group B                                                        Values       Points

#6          Current Ratio                                          1.29        0


#7          Total Debt / Equity                                    1.65        0


#8          Total Debt / Net Current Assets                     -36.92         0


#9          Growth For Last 10 Years                            8.00%          0
            Growth For Last 5 Years                             6.20%

            $                                      1,318
#10         Number of Earnings Declines                               0        1
Results                               TOTAL
Group A                                  1.5
Group B                                  1.0

Does Company pass the Graham Model?      No
ABT




                                       Commentary

      Under the Graham analysis, Abbott Laboratories recieves 1.5 points under
      group A. The requirements can be considered too stringent for the modern
      world. Graham's requirements for a 'winning company' in group A are
      outdated and should not be used to determine the worthiness of the
      investment. Under Group B Abbott earns a lousy 1 point as a result of it
      financial position. According to Graham, the company needs to achieve >=3.5
      points in order to qualify for further analysis. Thus, the Graham model strongly
      suggests investors not to purse this investment.
                                         BUFFETT




                                                                   A


The Buffet Model
EPS 5-Year ACGR FROM VALUE LINE (CALCULATE)
Average ROE (8-Year)


Initial Rate of Return @ Current Price


Value Relative to Gov't Bonds


                                  PROJECTED ACRR AS EQUITY BOND
Average Dividend Payout Ratio
Average % of Earnings Retained
Average ROE on Retained Earnings(10-Years)

Future Book Value in 10 Years
Projected EPS in 10 Years
Average P/E Ratio
Projected Share Price in 10 Years
ACRR @ Current Price


                                PROJECTED ACRR USING AVERAGE EPS
Last Year EPS
Projected EPS in 10 Years
Projected Share Price in 10 Years
ACRR @ Current Price
TERMS:
 ACGR = Average Compounded Growth Rate in EPS from Value Line
   ACRR = Average Compounded Rate of Return




                                         Page 24
                                                       BUFFETT




                                                              Abbott Laboratories


                                                                        Date:
                                                                        Yield on T-Bonds
                                                    10.77%              Share Price
                                                    27.04%              Shares Outstanding
                                                                        Book Value Per Share
                                                      8.05%             This value is equal to EPS divided by share price


                                                   $104.25              This is most recent EPS divided by the yield on U.S. Trea
                                                                        Therefore, $4.17/.04 = $104.25
TED ACRR AS EQUITY BOND
                                                      41.0%             From Value Line page, last Dividend Payout %
                                                      59.0%             This is 1 minus the average dividend payout ratio in the c
                                                    15.95%              This value is Average ROE times 59%
                                                    $63.49              This value is $14.45 times 1.1 raised to the 10th power
                                                    $17.17              This value is future book value times 10%
                                                      16.45             This is the average from VALUE LINE, CELL B16
                                                   $282.41              This is the projected EPS times the average P/E ratio
                                                    18.48%              This is based on a $51.80 price today growing to $282.41


ED ACRR USING AVERAGE EPS
                                                      $4.17             From Value Line spreadsheet
                                                    $11.60              This is the 10-year ACGR times last years EPS
                                                   $190.78              This is the projected EPS IN 10 years times the average
                                                    13.93%              This is the average growth rate based on a $51.80 price g
                              The average compounded rate of return computed as an equity bond of 18.48% is greater th
Rate in EPS from Value Line   while the ACRR based on average earning per share indicate that this investment should not
                              placed on the second method for the simple reason that it is more conservative and realistic in
                              the stock, in contrast to the safety feature associated with the equity bond.




                                                        Page 25
                                                                 BUFFETT




atories


                          6/5/2011
                                4%
                           $51.80
                              1548
                            $14.45
s equal to EPS divided by share price


 recent EPS divided by the yield on U.S. Treasury bonds
$4.17/.04 = $104.25


 Line page, last Dividend Payout %
nus the average dividend payout ratio in the cell above
s Average ROE times 59%
s $14.45 times 1.1 raised to the 10th power
s future book value times 10%
 verage from VALUE LINE, CELL B16
 rojected EPS times the average P/E ratio
d on a $51.80 price today growing to $282.41 in 10 years




 Line spreadsheet
 0-year ACGR times last years EPS
 rojected EPS IN 10 years times the average P/E ratio of 16.45
 verage growth rate based on a $51.80 price growing to $190.78 in 10 years
as an equity bond of 18.48% is greater than the minimum required 15%,
 indicate that this investment should not be pursued . Greater weight is
 hat it is more conservative and realistic in nature factoring in the volat
d with the equity bond.




                                                                 Page 26
                               BUFFETT




190.78 in 10 years
nimum required 15%,
d . Greater weight is
ctoring in the volatility of




                               Page 27
                                               ROE




                                                                                        Abbott Laboratori

                                              Projected ROE Based on P/E Ratios
                                                         Projections for 10 year period
                                                                                   Reinvested Dividends
        Year             Equity Value   Per Share Earnings   Dividends Paid Out          High P/E
          1                $16.70              $3.82                $1.57                  $1.57
          2                $19.31              $4.41                $1.81                  $1.81
          3                $22.32              $5.10                $2.09                  $2.09
          4                $25.80              $5.90                $2.42                  $2.42
          5                $29.82              $6.82                $2.80                  $2.80
          6                $34.47              $7.88                $3.23                  $3.23
          7                $39.85              $9.11                $3.74                  $3.74
          8                $46.06             $10.53                $4.32                  $4.32
          9                $53.25             $12.18                $4.99                  $4.99
         10                $61.55             $14.07                $5.77                  $5.77
                                                                   $32.73                 $32.73


Price Appreciation (Low P/E)                        $170.29    Price Appreciation (High P/E)
Rate of Return on Appreciation                     228.75%     Rate of Return on Appreciation
Annualized                                          12.64%     Annualized
With reinvested dividends                          291.94%     With reinvested dividends
Annualized                                          14.64%     Annualized
With out reinvested dividends                      228.75%     With out reinvested dividends
Annualized                                          12.64%     Annualized



INPUT VARIABLES
Current Price               $51.80
ROE                          26.4%
Initial Book Value          $14.45
Payout Ratio                 41.0%
P/E - High                    19.2
P/E - Low                     12.1




                                              Page 28
                                                 ROE




bbott Laboratories

atios                                               Commentary



                                                 The purpose of the ROE Model is to present an estimation
            Low P/E         Retained Earnings    of the future return on equity for a ten year period. This
              $1.57               $2.25          model is based on using a range in P/E ratios that come
              $1.81               $2.60          directly from the Value Line data.
              $2.09               $3.01          Abbott Laboratories has a potential range in ROE values
              $2.42               $3.48          of 14.64% (with a low P/E of 12.1), or 19.32% (with a high
              $2.80               $4.02          P/E of 19.2). Based on the 15% investor return
              $3.23               $4.65          expectation, this analysis would result in a positive buy
              $3.74               $5.38          decision since the 'low' P/E' ROE ratio falls only slightly
              $4.32               $6.21
                                                 short of meeting the 15% threshhold and the ROE based
              $4.99               $7.18
                                                 on 'high P/E' overshoots the benchmark
              $5.77               $8.30
             $32.73              $47.10


                  $270.22
                 421.65%
                  17.96%
                 484.84%
                  19.32%
                 421.65%
                  17.96%




                                                Page 29
                                                      ROE




 se of the ROE Model is to present an estimation
ure return on equity for a ten year period. This
 ased on using a range in P/E ratios that come
 om the Value Line data.
             has a potential range in ROE values
  (with a low P/E of 12.1), or 19.32% (with a high
 2). Based on the 15% investor return
on, this analysis would result in a positive buy
      the 'low' P/E' ROE ratio falls only slightly
meeting the 15% threshhold and the ROE based
 /E' overshoots the benchmark.




                                                     Page 30
                                     SUMMARY




                                                          Abbott Laboratories

                                                            Decision Summary

        Model                   Method           Value

                                2008             27.86%
                                2009             25.09%
   DuPont Analysis
                                2010             20.58%
                            Geometric Mean       24.32%




                               Pessimistic        1.14
                               Optimistic         2.22
Intrinsic Value Analysis
                              Most Likely         1.59




                                Group A           1.5
  The Graham Model              Group B            1

                               Combined           2.5




                           ACRR - Equity Bond    18.48%
     Buffett Model
                              ACRR - EPS         13.93%



                                Low P/E          14.6%
   ROE Projections
                                High P/E         19.32%




                                       Page 31
                              SUMMARY




    Abbott Laboratories

       Decision Summary

Recommendation                                                 Commentary


                     After conducting much research with respect to Abbott's nature o f business, years o
                     existence, and historical performance, it was decided to carry out further fundamen
     Yes
                     financial analysis in order to determine whether holding his stock would in fact bene
                     potential investors. After applying five varied analysis models it is recommended th
                     investors pursue this investment opportunity.

                     The ex-post ratio and DuPont analysis was used to determine the current financial w
     No              of Abbott Laboratories, which overshoots the threshold of a 15% geometric mean .
     Yes             strategic financial analysis using Value Line Investment Survey data was performed
                     cash flow and and identify the company’s strengths, weaknesses, opportunities and
     Yes             Although we aim to be conservative in basing a decision off the instrinsic value anal
                     ought to keep economic cycles in mind. It is with great expectation that Abbotts fina
                     performance will rapidly take off as the economy enters the expansionary phase. Ad
                     as Abbot expands its market share and recent major aquisitions begin to yield reven
                     is much potential for growth. Thus, over and above the numbers, Abt is selling at a d
                     price in relation to the market. This instrinsic value analysis was given a larger weig
                     evaluating the investment opportunity, while the graham model was not consider
      No
                     stringent and unrealistic nature. The ROE projections model confirm our recoomenda
                     based on the 15% investor return expectation, this analysis would result in a positive
                     decision since the 'low' P/E' ROE ratio falls only slightly short of meeting the 15% thr
                     and the ROE based on 'high P/E' overshoots the benchmark. Contrary to
     Yes             results, are those from the Buffet Model, which present an ambiguous situation. Wh
                     average current rate of return when treated an an equity bond poses a positive buy,
      No             relevant realistic ACRR based on EPS suggests a 'do not buy.'

                     Thus overall, it is a strong suggestion that the potential shareholder of Abbott Labor
      No
                     hold this stock in a well diversified portfolio as to minimize risk, but reap the reward
                     expect to see materialize in the near future.
     Yes




                                Page 32
                                                SUMMARY




y


ott's nature o f business, years of
d to carry out further fundamental
 ing his stock would in fact benefit
s models it is recommended that


 etermine the current financial well-being
old of a 15% geometric mean . Second, a
 nt Survey data was performed to project
weaknesses, opportunities and threats.
sion off the instrinsic value analysis, one
at expectation that Abbotts financial
 ers the expansionary phase. Additionally,
  aquisitions begin to yield revenue, there
he numbers, Abt is selling at a discounted
nalysis was given a larger weight in
raham model was not considered due its
  model confirm our recoomendation;
nalysis would result in a positive buy
 ly short of meeting the 15% threshhold
         . Contrary to our favorable analysis
 nt an ambiguous situation. While the
quity bond poses a positive buy, the more


ial shareholder of Abbott Laboratories
imize risk, but reap the rewards that we




                                                Page 33

				
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