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ABB Ltd. Key Financial Ratios

NSE:ABB | ELECTRICAL EQUIPMENT

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Profitability Margins

2-year trend showing gross, operating, and net profit margins

FY 2023 - FY 2024

ABB Ltd.'s net profit margin of 14.9% in FY2024 reflects moderate profitability, with operating margin at 20.2% and gross margin at 46.2%.

Understanding Profitability Margins

In FY 2024, ABB Ltd. posted a gross margin of 46.2%, an operating margin of 20.2%, a net margin of 14.9%. Gross Margin = (Revenue - COGS) / Revenue; Operating Margin = EBIT / Revenue; Net Margin = Net Income / Revenue. Typical healthy ranges: Gross 20-40%, Operating 10-20%, Net 5-10%+. Consistent or improving margins indicate strong competitive positioning.

Company Performance

2-year trend showing revenue, gross profit, and net profit

FY 2023 - FY 2024

ABB Ltd.'s revenue grew 16.7% to 125.42B and net profit grew 50.7% to 18.72B YoY in FY2024, indicating healthy business momentum.

Understanding Company Performance

In FY 2024, ABB Ltd.'s revenue grew by 16.7% year-over-year. Revenue is total income from operations. Gross Profit is revenue minus cost of goods. Net Profit is the bottom line after all expenses. Consistent growth across all three signals a healthy, expanding business.

Return on Equity (ROE)

2-year trend showing shareholder returns

FY 2023 - FY 2024

ABB Ltd.'s ROE of 26.5% in FY2024 indicates excellent capital efficiency.

Understanding Return on Equity (ROE)

In FY 2024, ABB Ltd. reported an ROE of 26.5%. ROE = (Net Income / Shareholders' Equity) x 100. Measures how efficiently the company turns equity into profit. Above 15% is generally strong; above 25% is excellent. Very high ROE may signal high leverage — check alongside debt levels.

Net Income vs Free Cash Flow

2-year trend comparing profitability with cash generation

FY 2023 - FY 2024

ABB Ltd.'s FCF/NI ratio of 0.60x in FY2024 indicates FCF trailing profits — heavy capex or working capital needs may be a factor.

Understanding Net Income vs Free Cash Flow

In FY 2024, ABB Ltd.'s free cash flow trailed net income. Free Cash Flow = Operating Cash Flow - Capital Expenditure. When FCF exceeds net income, it suggests high-quality, cash-backed earnings. Persistent gaps may indicate aggressive accounting or heavy capex needs.

Net Income vs Operating Cash Flow

2-year trend comparing profitability with cash from operations

FY 2023 - FY 2024

ABB Ltd.'s OCF/NI ratio of 0.71x in FY2024 indicates reasonable cash conversion from operations.

Understanding Net Income vs Operating Cash Flow

In FY 2024, ABB Ltd.'s operating cash flow trailed net income. Operating Cash Flow is the actual cash from core operations. OCF exceeding net income signals strong cash collection. OCF trailing net income may indicate aggressive revenue recognition or working capital issues.

Leverage Ratios

Measure a company's financial leverage, liquidity, and ability to meet financial obligations.

Current Ratio Analysis

2-year trend showing short-term liquidity position

FY 2023 - FY 2024

ABB Ltd.'s current ratio of 2.04x in FY2024 indicates healthy short-term liquidity.

Understanding Current Ratio

In FY 2024, ABB Ltd. reported a current ratio of 2.04. Current Ratio = Current Assets / Current Liabilities. Measures short-term liquidity. A ratio of 1.5-3.0 is generally healthy; below 1.0 signals liquidity risk; above 3.0 may indicate underutilized assets.

Interest Coverage Ratio Analysis

2-year trend showing ability to service debt

FY 2023 - FY 2024

ABB Ltd.'s interest coverage ratio of 153.8x in FY2024 indicates comfortable debt servicing capacity.

Understanding Interest Coverage Ratio

In FY 2024, ABB Ltd. reported an interest coverage ratio of 153.8x. Interest Coverage = EBIT / Interest Expense. Shows how many times operating profit covers interest payments. Above 5x is comfortable; below 1.5x signals potential difficulty servicing debt.

Debt-to-Equity Ratio Analysis

2-year trend showing financial leverage and capital structure

FY 2023 - FY 2024

ABB Ltd.'s debt-to-equity ratio of 0.01x in FY2024 reflects a conservative, low-leverage capital structure.

Understanding Debt-to-Equity Ratio

In FY 2024, ABB Ltd. reported a debt-to-equity ratio of 0.01. Debt-to-Equity = Total Debt / Total Equity. Below 1.0 is conservative; 1.0-2.0 is moderate; above 2.0 indicates higher financial risk. Capital-intensive industries naturally carry higher ratios.

Total Debt Analysis

2-year trend showing total debt with year-over-year changes

FY 2023 - FY 2024

ABB Ltd.'s debt increased 5.9% YoY in FY2024 — debt levels are increasing.

Understanding Total Debt

In FY 2024, ABB Ltd.'s total debt increased by 5.9% year-over-year. Total Debt includes short-term debt, long-term loans, debentures, and capital leases. YoY changes (shown as percentages) reveal whether the company is leveraging up or deleveraging.

Shares Outstanding

Year-over-year change in diluted shares outstanding

ABB Ltd.'s diluted shares remained virtually unchanged in FY2024.

Over 2 years (FY2023–FY2024), diluted shares remained essentially unchanged at 211.91M.

Understanding Shares Outstanding

In FY 2024, ABB Ltd.'s diluted shares increased by 0.0% year-over-year. Diluted Shares accounts for stock options, warrants, and convertibles. Positive YoY change means dilution (red); negative means buybacks (green). Consistent dilution above 5% annually is a red flag.

Data from audited consolidated filings. For educational purposes only — not investment advice. Last update: FY 2024