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.