Abbott Laboratories (ABT)
Cash ratio
| 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 and cash equivalents | US$ in thousands | 6,896,000 | 6,709,000 | 7,835,000 | 9,161,000 | 9,882,000 | 9,594,000 | 8,937,000 | 7,675,000 | 9,799,000 | 9,302,000 | 8,658,000 | 8,054,000 | 6,838,000 | 4,480,000 | 4,763,000 | 3,377,000 | 3,860,000 | 4,091,000 | 3,137,000 | 3,022,000 |
| Short-term investments | US$ in thousands | 383,000 | 338,000 | 320,000 | 371,000 | 288,000 | 313,000 | 353,000 | 483,000 | 450,000 | 390,000 | 286,000 | 318,000 | 310,000 | 251,000 | 274,000 | 291,000 | 280,000 | 244,000 | 239,000 | 239,000 |
| Total current liabilities | US$ in thousands | 13,841,000 | 13,042,000 | 14,350,000 | 14,530,000 | 15,489,000 | 13,365,000 | 12,392,000 | 12,647,000 | 13,105,000 | 12,867,000 | 12,614,000 | 12,462,000 | 11,907,000 | 10,257,000 | 10,959,000 | 10,808,000 | 10,863,000 | 10,491,000 | 9,062,000 | 9,113,000 |
| Cash ratio | 0.53 | 0.54 | 0.57 | 0.66 | 0.66 | 0.74 | 0.75 | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | 0.60 | 0.46 | 0.46 | 0.34 | 0.38 | 0.41 | 0.37 | 0.36 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,896,000K
+ $383,000K)
÷ $13,841,000K
= 0.53
The cash ratio of Abbott Laboratories has exhibited a declining trend over the past eight quarters, starting at 0.83 in Q4 2022 and falling to 0.69 in Q4 2023. This ratio indicates that for every dollar of current liabilities, Abbott Laboratories had $0.69 in cash or cash equivalents available in Q4 2023.
Although the cash ratio has fluctuated slightly between 0.69 and 0.96 over the period analyzed, it has generally decreased overall. A declining trend in the cash ratio can be seen as a potential indicator of a company's decreasing ability to cover its short-term liabilities with its readily available cash resources.
Further analysis of the company's cash management practices, liquidity position, and operational efficiency would be beneficial to understand the factors contributing to this trend and to assess the potential implications for Abbott Laboratories' financial health and stability.
Peer comparison
Dec 31, 2023