Abbott Laboratories (ABT)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	23,656,000	22,670,000	25,224,000	24,239,000	20,441,000
Total current liabilities	US$ in thousands	14,157,000	13,841,000	15,489,000	13,105,000	11,907,000
Current ratio		1.67	1.64	1.63	1.85	1.72

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $23,656,000K ÷ $14,157,000K
= 1.67

Abbott Laboratories' current ratio has shown a fluctuating trend over the past five years. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

As of December 31, 2020, the current ratio was 1.72, indicating that Abbott had $1.72 in current assets for every $1 in current liabilities. This suggests a relatively healthy position.

By December 31, 2021, the current ratio had improved to 1.85, demonstrating an increase in Abbott's ability to meet its short-term obligations using its current assets.

However, in the following years, there was a slight decrease in the current ratio. By December 31, 2022, the ratio stood at 1.63, possibly indicating a tighter liquidity position compared to the previous year.

The current ratio remained relatively stable in the subsequent years, with values of 1.64 as of December 31, 2023, and 1.67 as of December 31, 2024. These ratios suggest Abbott continued to maintain a reasonable level of liquidity to cover its short-term liabilities.

In conclusion, while Abbott Laboratories' current ratio has experienced some fluctuations, overall, it has remained above 1, indicating the company has generally been able to meet its short-term obligations using its current assets.