Abbott Laboratories (ABT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 23,656,000 | 23,802,000 | 23,119,000 | 22,376,000 | 22,670,000 | 22,664,000 | 23,505,000 | 25,224,000 | 25,224,000 | 24,845,000 | 24,956,000 | 23,429,000 | 24,239,000 | 23,492,000 | 22,627,000 | 21,817,000 | 20,441,000 | 17,390,000 | 17,221,000 | 15,498,000 |
| 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 |
| Current ratio | 1.67 | 1.60 | 1.68 | 1.60 | 1.64 | 1.74 | 1.64 | 1.63 | 1.63 | 1.86 | 2.01 | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | 1.72 | 1.70 | 1.57 | 1.43 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $23,656,000K ÷ $14,157,000K
= 1.67
The current ratio of Abbott Laboratories has shown some fluctuations over the past few years. From March 31, 2020, to June 30, 2022, the current ratio steadily increased from 1.43 to 2.01, indicating improvements in the company's short-term liquidity position. However, since June 30, 2022, there has been some volatility in the current ratio, with a decrease seen in the following quarters.
The current ratio peaked at 2.01 on June 30, 2022, suggesting a strong ability to cover its short-term obligations with its current assets. Subsequently, the ratio fluctuated between 1.60 and 1.85 until December 31, 2024. Despite some variability, the current ratio generally remained above 1, indicating that Abbott Laboratories had more than sufficient current assets to meet its short-term liabilities during this period.
It is essential for the company to maintain a healthy current ratio to ensure it can meet its short-term financial obligations promptly. Management should monitor trends in the ratio over time to ensure there is a balance between current assets and liabilities to support the company's ongoing operations and growth initiatives.
Peer comparison
Dec 31, 2024