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ABBNY · OTC · United States · Switchgear & Switchboard Apparatus
In shortABB LTD is profitable, generates cash and carries moderate debt, with revenue growing (+9.5% last year).
Financial health
Solid
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 15.1% | 67/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 11.6% | 66/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 28.6% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 18.5% | 100/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.18× | 32/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.58× | 79/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | 0.36× | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 3.42 | 59/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 10.9% | 64/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.94× | 80/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 1 of 5 | 67/100 |
| Revenue growth volatility | 7.0% | 85/100 |
| Operating margin volatility | 5.7% | 57/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 7.2% | 57/100 |
|---|---|---|
| EPS growth, 3-year average | -6.1% | 0/100 |
Weight in the score: 10%
Fiscal year 2023 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY19 | FY20 | FY21 | FY22 | FY23 |
|---|---|---|---|---|---|
| Revenue | 27,978 | 26,134 | 28,945 | 29,446 | 32,235 |
| Cost of revenue | 19,072 | 18,256 | 19,478 | 19,736 | 21,021 |
| Gross profit | 8,906 | 7,878 | 9,467 | 9,710 | 11,214 |
| Research & development | 1,198 | 1,127 | 1,219 | 1,166 | 1,317 |
| Selling, general & admin | 5,447 | 4,895 | 5,162 | 5,132 | 5,543 |
| Operating income | 1,938 | 1,593 | 5,718 | 3,337 | 4,871 |
| Pre-tax income | 1,862 | 841 | 5,787 | 3,394 | 4,778 |
| Income tax | 772 | 496 | 1,057 | 757 | 930 |
| Net income | 1,439 | 5,146 | 4,546 | 2,475 | 3,745 |
| Diluted EPS | $0.67 | $2.43 | $2.25 | $1.30 | $2.01 |
| Diluted shares (millions) | 2,135 | 2,119 | 2,019 | 1,910 | 1,867 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
3.42 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
8/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Dec 31, 2023 · Data updated Feb 23, 2024