Abbott Laboratories (ABT) 10-K Red Flags
Risk signals extracted deterministically from Abbott Laboratories’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (19)
- Receivables outpacing revenue: Accounts receivable grew +5.5% YoY vs revenue growth of -8.1%. The +13.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Free cash flow deteriorating: FCF declined +35.2% YoY (from $7.80B to $5.06B). With OCF at $7.26B and capex at $2.20B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
- NEW: Going concern doubt in latest filing: The term "going concern" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 4 filing(s).
- Material weakness in internal controls: The term "material weakness" appears in 20 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
- NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 3 filing(s).
- Operating cash flow exceeds net income: OCF is 1.27x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Endogenous analysis: Revenue grew -8.1% but receivables grew +5.5% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: Free cash flow declined despite stable or rising capex, indicating the cash burn is operational rather than investment-driven. This is a structural concern — cost reduction or asset sales may be needed to restore FCF.
- Endogenous analysis: The combination of explicit "going concern" language in the filing with deteriorating cash flow or rising leverage is a severe warning signal — the company's own auditors have flagged doubt about the ability to continue as a going concern.
- 2 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 2 new risk-language term(s) detected in filing text: Going concern doubt, Restatement of financial statements.
- Ongoing high-severity risk language: Material weakness in internal controls.
- Revenue declined **+8.1%** YoY to $40.11B.
- Net margin at **14.27%** (expanding ▲).
- Market cap $166.17B at $95.40 per share.
- Trailing P/E 29.26, P/S 4.14, P/B 3.19.
- Receivables outpacing revenue: Accounts receivable grew +5.5% YoY vs revenue growth of -8.1%. The +13.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Free cash flow deteriorating: FCF declined +35.2% YoY (from $7.80B to $5.06B). With OCF at $7.26B and capex at $2.20B, cash generation capacity is weakening — monitor for dividend/buyback sustainability.
Filings & ownership
- Latest annual report (10-K) filed Feb 20, 2026.
- Latest quarterly report (10-Q) filed Apr 29, 2026.
- 14 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~10,000+ recent 13F-HR filings reference Abbott Laboratories; broad institutional reporting.
- Recent filers include THURSTON, SPRINGER, MILLER, HERD & TITAK, INC., LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS /MA, LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS /MA.
- 8 recent 13D activist/beneficial-ownership filings — potential catalyst.
- 12 recent 13G passive institutional ownership notices.
Full ABT analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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