Abbott Laboratories (ABT)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 7,616,000 | 7,558,000 | 6,987,000 | 6,284,000 | 6,896,000 | 6,709,000 | 7,835,000 | 9,882,000 | 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 |
| Short-term investments | US$ in thousands | 351,000 | 230,000 | 232,000 | 367,000 | 383,000 | 338,000 | 320,000 | 288,000 | 288,000 | 313,000 | 353,000 | 483,000 | 450,000 | 390,000 | 286,000 | 318,000 | 310,000 | 251,000 | 274,000 | 291,000 |
| Total current liabilities | US$ in thousands | 14,157,000 | 14,902,000 | 13,760,000 | 14,021,000 | 13,841,000 | 13,042,000 | 14,350,000 | 15,489,000 | 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 |
| Cash ratio | 0.56 | 0.52 | 0.52 | 0.47 | 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 |
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 of Abbott Laboratories has shown a fluctuating trend over the quarters analyzed. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, increased steadily from March 31, 2020, to December 31, 2021, reaching a peak of 0.78. This indicates that Abbott had a high level of cash relative to its current liabilities during this period.
However, the cash ratio then began to decrease, dipping to 0.47 by March 31, 2024. This downward trend suggests that Abbott's cash position relative to its short-term obligations has weakened, which could potentially signal challenges in meeting its immediate financial obligations.
Overall, while Abbott Laboratories maintained a relatively strong cash position in the earlier periods analyzed, there has been a recent decline in the cash ratio, indicating a potential need for the company to closely monitor its liquidity position and manage its cash flow effectively to ensure it can cover its short-term obligations.
Peer comparison
Dec 31, 2024