AbbVie Inc (ABBV)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 0.87 0.96 0.89 0.96 0.96 0.93 0.84 0.82 0.79 1.01 0.91 0.83 0.84 0.95 0.86 3.14 3.18 1.15 0.89 1.04
Quick ratio 0.63 0.71 0.63 0.66 0.69 0.69 0.61 0.56 0.56 0.75 0.65 0.61 0.60 0.68 0.58 2.88 2.91 0.92 0.64 0.78
Cash ratio 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 2.56 0.61 0.32 0.38

The current ratio for Abbvie Inc has been fluctuating between 0.87 to 0.96 over the recent quarters, indicating that the company may have some difficulty covering its short-term liabilities with current assets. The quick ratio, which excludes inventory from current assets, has also shown variability between 0.76 to 0.84, suggesting that Abbvie may struggle to meet its short-term obligations using its most liquid assets.

Furthermore, the cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has ranged from 0.41 to 0.51. This implies that Abbvie may have limited ability to cover its current liabilities solely with its cash reserves.

Overall, the liquidity ratios of Abbvie Inc suggest that the company may face challenges in meeting its short-term financial obligations consistently. It is important for Abbvie to closely monitor and manage its liquidity position to ensure it can fulfill its financial commitments as they come due.

See also:

AbbVie Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 79.03 116.69 117.70 112.31 77.35 100.13 107.86 108.28 67.57 95.83 104.32 106.60 84.07 126.83 173.09 136.56 77.27 155.85 155.18 146.50

Abbvie Inc's cash conversion cycle has shown fluctuations over the past eight quarters, with Q2 2023 having the highest cycle of 159.84 days and Q4 2023 showing a decrease to 82.31 days, which is the lowest in the given period. This indicates that Abbvie Inc was able to convert its investments in inventory to cash more efficiently in Q4 2023 compared to previous quarters.

Overall, Abbvie Inc's cash conversion cycle has been relatively high, particularly in Q2 and Q3 of 2023, suggesting a longer time for the company to turn its sales into cash. However, there was a noticeable improvement in the cycle in Q4 2023, indicating better management of inventory, accounts receivable, and accounts payable during that period.

It is essential for Abbvie Inc to continue monitoring and optimizing its cash conversion cycle to ensure efficient cash flow management and overall financial health.