Financial statement analysis of Abbott.docx

Financial statement analysis of Abbott
Group 2
Members in participation
Yangyang Cai
Hua Huang
Biao Jiang
Chenglong Qian
Congcong Lin
Zijian Wang
Jie Zheng.
Part 1 3
1. History of Abbott 3
2. State of operation: 3
3. Strategies for sustainable earning growth: 3
(1) Diversified products: 3
(2) High pricing 3
(3) Shift of market segments: 4
4. SWOT Analysis for Abbott: 4
Part 2 5
1. Accounting methods for Inventories: 5
2. Accounting method for R&D: 5
3. Accounting method for Depreciation: 5
4. Basis of consolidation and change in accounting principle: 6
Part 3 6
1. History data analysis 6
(1) Activity: 6
(2) Liquidity: 7
(3) Solvency: 7
(4) Profitability 7
(5) Cash flows 8
2. parison: Abbott VS Johnson: 8
(1) parison: 8
(2) parison: 8
(3) parison 9
(4) parison 9
(5) Cash parison 9
Conclusion 10
Reference 10
Part 1
History of Abbott
pany was founded by Dr. Wallace C. Abbott (1857-1921), an 1885 graduate of the University ofMichigan. His innovation about the use of the active part of a medicinal plant, an alkaloid, was essful since it allowed more consistent and effective dosages for patients. As pany’s overseas sales and reputation was going, in 1931, Abbott formed its first international office in Montreal, Canada. Abbott 
continued expanding and divided itself to several regions, with each subsidiaries reporting to the international management.
State of operation:
Over the last century, Abbott is specialized in producing medicines; medical diagnostic instruments and tests; minimally invasive surgical devices; nutritional supplements for infants, children and adults; and products for veterinary care. Abbott has sales, manufacturing, research and development, and distribution facilities around the world.
Abbott is currently in a state of stable growth, which will be further discussed in the financial ratio sector. In 2011, global sales and earnings per share of Abbott rose more than 10 percent. Also, the performance of Abb