AbbVie Inc (ABBV)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 12,814,000 9,201,000 9,746,000 8,449,000 39,924,000
Short-term investments US$ in thousands 2,000 28,000 84,000 30,000 0
Total current liabilities US$ in thousands 37,841,000 29,538,000 35,194,000 28,661,000 15,585,000
Cash ratio 0.34 0.31 0.28 0.30 2.56

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,814,000K + $2,000K) ÷ $37,841,000K
= 0.34

The cash ratio of Abbvie Inc has shown a relatively stable trend over the past five years, with values ranging from 0.42 to 0.47. The cash ratio measures a company's ability to cover its short-term liabilities using its cash and cash equivalents.

The consistent range of the cash ratio indicates that Abbvie Inc has maintained a prudent level of liquidity to meet its short-term obligations. A cash ratio above 1.0 suggests that a company can cover all its current liabilities with its cash on hand, while a ratio below 1.0 may indicate potential liquidity challenges.

Although the cash ratio of Abbvie Inc has been consistently below 1.0 in the last five years, it is important to consider the industry norms and the company's specific business model when evaluating the adequacy of its liquidity position. Overall, the stable cash ratio of Abbvie Inc suggests a cautious approach towards managing its short-term liquidity needs.


Peer comparison

Dec 31, 2023


See also:

AbbVie Inc Cash Ratio