Abbott Laboratories (ABT)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	7,616,000	6,896,000	9,882,000	9,799,000	6,838,000
Short-term investments	US$ in thousands	351,000	383,000	288,000	450,000	310,000
Total current liabilities	US$ in thousands	14,157,000	13,841,000	15,489,000	13,105,000	11,907,000
Cash ratio		0.56	0.53	0.66	0.78	0.60

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($7,616,000K + $351,000K) ÷ $14,157,000K
= 0.56

The cash ratio for Abbott Laboratories has exhibited varying trends over the years based on the provided data. The ratio was 0.60 as of December 31, 2020, indicating that the company had $0.60 in cash and cash equivalents for every $1 of current liabilities.

Over the subsequent years, the cash ratio increased to 0.78 by December 31, 2021, reflecting an improvement in the company's liquidity position. This suggests that Abbott Laboratories had a higher level of cash reserves relative to its short-term obligations, which can be reassuring from a financial stability perspective.

However, in the following years, the cash ratio fluctuated, reaching 0.66 by December 31, 2022, declining to 0.53 by December 31, 2023, and then slightly recovering to 0.56 by December 31, 2024. These fluctuations may indicate changes in the company's cash management practices, investment decisions, or overall financial health during these periods.

Overall, while the cash ratio of Abbott Laboratories has shown some volatility, it generally remained above 0.5, suggesting that the company has maintained a reasonable level of liquidity to meet its short-term obligations throughout the years analyzed.