AbbVie Inc (ABBV)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	25,582,000	33,002,000	28,463,000	27,928,000	24,173,000
Total current liabilities	US$ in thousands	38,749,000	37,841,000	29,538,000	35,194,000	28,661,000
Current ratio		0.66	0.87	0.96	0.79	0.84

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $25,582,000K ÷ $38,749,000K
= 0.66

Based on the provided data for AbbVie Inc's current ratio from December 31, 2020, to December 31, 2024, we observe fluctuations in the company's ability to cover its short-term obligations with its current assets.

- The current ratio decreased from 0.84 in December 2020 to 0.79 in December 2021, indicating a potential weakening in AbbVie's liquidity position.
- However, the ratio improved in the following year, reaching 0.96 by December 31, 2022, suggesting an enhanced ability to meet short-term obligations.
- Subsequently, there was a slight decline in the current ratio to 0.87 by the end of December 2023.
- The trend took a more significant downturn in the last year, with the current ratio dropping notably to 0.66 by December 31, 2024.

Overall, AbbVie's current ratio has shown variability over the years, with fluctuations possibly reflecting changes in the company's current asset composition or liabilities management. It is important for the company to monitor and manage its liquidity position effectively to ensure its ability to meet short-term obligations in a timely manner.