AbbVie Inc (ABBV)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,524,000 | 7,257,000 | 13,130,000 | 18,067,000 | 12,814,000 | 13,287,000 | 8,759,000 | 6,711,000 | 9,201,000 | 11,832,000 | 8,521,000 | 6,098,000 | 9,746,000 | 12,182,000 | 8,546,000 | 9,755,000 | 8,449,000 | 7,890,000 | 6,017,000 | 41,142,000 |
| Short-term investments | US$ in thousands | 31,000 | 28,000 | 27,000 | 2,000 | 2,000 | 3,000 | 7,000 | 11,000 | 28,000 | 47,000 | 1,440,000 | 1,474,000 | 84,000 | 67,000 | 54,000 | 22,000 | 30,000 | 60,000 | 23,000 | — |
| Total current liabilities | US$ in thousands | 38,749,000 | 43,062,000 | 41,915,000 | 41,522,000 | 37,841,000 | 34,773,000 | 32,239,000 | 27,590,000 | 29,538,000 | 32,712,000 | 34,473,000 | 32,521,000 | 35,194,000 | 28,533,000 | 28,684,000 | 31,951,000 | 28,661,000 | 24,181,000 | 24,646,000 | 16,471,000 |
| Cash ratio | 0.14 | 0.17 | 0.31 | 0.44 | 0.34 | 0.38 | 0.27 | 0.24 | 0.31 | 0.36 | 0.29 | 0.23 | 0.28 | 0.43 | 0.30 | 0.31 | 0.30 | 0.33 | 0.25 | 2.50 |
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 fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio represents the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a company has more cash and cash equivalents relative to its current liabilities and is in a better position to meet its short-term obligations.
AbbVie Inc's cash ratio ranged from a high of 2.50 on March 31, 2020, to a low of 0.14 on December 31, 2024. The ratio generally decreased after the initial high in March 2020 and stabilized around 0.30 to 0.40 from September 2021 to March 2024, with a slight uptick in the final quarter of 2024.
A low cash ratio may indicate that the company is using its cash for other purposes such as investments or acquisitions rather than maintaining liquidity. Conversely, a very high cash ratio may suggest that the company is not utilizing its cash efficiently and should consider investing excess cash for better returns.
Overall, the trend of AbbVie Inc's cash ratio suggests a level of liquidity that has been relatively stable over the period under review, with occasional fluctuations that may warrant further investigation into the company's cash management strategies.
Peer comparison
Dec 31, 2024