What Is Abbott’S Net Debt: A Deep Dive

Abbott Laboratories had $14.58 billion in total debt as of March 2024. This figure represents the sum of all current and non-current debts found on the company’s balance sheet. It’s important to note that total debt is different from net debt.

Net debt is calculated by subtracting cash and cash equivalents from total debt. This provides a clearer picture of a company’s true debt burden.

For example, if Abbott Laboratories had $5 billion in cash and cash equivalents, their net debt would be $9.58 billion ($14.58 billion total debt – $5 billion cash). This means that after accounting for their liquid assets, Abbott Laboratories owes $9.58 billion.

Understanding the difference between total debt and net debt is crucial for investors when evaluating a company’s financial health. While total debt might seem high, net debt gives a more accurate picture of the company’s ability to repay its obligations.