AbbVie Inc (ABBV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 33,002,000 | 28,463,000 | 27,928,000 | 24,173,000 | 49,519,000 |
| Total current liabilities | US$ in thousands | 37,841,000 | 29,538,000 | 35,194,000 | 28,661,000 | 15,585,000 |
| Current ratio | 0.87 | 0.96 | 0.79 | 0.84 | 3.18 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $33,002,000K ÷ $37,841,000K
= 0.87
The current ratio of Abbvie Inc has fluctuated over the past five years, indicating variability in the company's short-term liquidity position. The current ratio was 0.87 as of December 31, 2023, which declined compared to the previous year's ratio of 0.96. This suggests that Abbvie's ability to meet its short-term obligations with its current assets has weakened slightly.
The current ratio of 0.87 is lower than the industry standard of 1, indicating potential liquidity concerns. A current ratio below 1 may suggest that the company may have difficulty meeting its short-term liabilities with its current assets alone.
It is important for investors and stakeholders to monitor Abbvie's current ratio closely to ensure that the company can effectively manage its short-term financial obligations. Additional analysis of the components of current assets and liabilities would provide more insights into the trends and factors impacting Abbvie's current ratio.
Peer comparison
Dec 31, 2023