AbbVie Inc (ABBV)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	5,524,000	12,814,000	9,201,000	9,746,000	8,449,000
Short-term investments	US$ in thousands	31,000	2,000	28,000	84,000	30,000
Total current liabilities	US$ in thousands	38,749,000	37,841,000	29,538,000	35,194,000	28,661,000
Cash ratio		0.14	0.34	0.31	0.28	0.30

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,524,000K + $31,000K) ÷ $38,749,000K
= 0.14

The cash ratio of AbbVie Inc has shown some fluctuations over the years based on the provided data.

As of December 31, 2020, the cash ratio was 0.30, indicating that the company had $0.30 in cash and cash equivalents for every $1 of current liabilities. This suggests a healthy liquidity position at the end of 2020.

By December 31, 2021, the cash ratio decreased slightly to 0.28, which may indicate a slight decline in the company's ability to cover its short-term obligations with its cash holdings.

The cash ratio then improved to 0.31 by the end of 2022, which shows a recovery in liquidity. The trend continued with a further increase to 0.34 by December 31, 2023, indicating an even stronger ability to meet short-term obligations using cash reserves.

However, there was a significant decline in the cash ratio to 0.14 as of December 31, 2024. This sharp decrease suggests a potential strain on liquidity and a reduced ability to cover current liabilities with available cash.

Overall, while there have been fluctuations in AbbVie Inc's cash ratio over the years, it is important for the company to closely monitor its liquidity position to ensure it can effectively meet its short-term obligations.