Abbott Laboratories (ABT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,896,000 | 9,882,000 | 9,799,000 | 6,838,000 | 3,860,000 |
| Short-term investments | US$ in thousands | 383,000 | 288,000 | 450,000 | 310,000 | 280,000 |
| Receivables | US$ in thousands | 6,565,000 | 6,218,000 | 6,487,000 | 6,414,000 | 5,425,000 |
| Total current liabilities | US$ in thousands | 13,841,000 | 15,489,000 | 13,105,000 | 11,907,000 | 10,863,000 |
| Quick ratio | 1.00 | 1.06 | 1.28 | 1.14 | 0.88 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,896,000K
+ $383,000K
+ $6,565,000K)
÷ $13,841,000K
= 1.00
The quick ratio of Abbott Laboratories has exhibited some fluctuations over the past five years. In 2023, the quick ratio stands at 1.16, which indicates that the company has $1.16 in liquid assets available to cover each $1 of current liabilities. Compared to the previous year, the quick ratio has decreased from 1.23 in 2022, showing a slight decline in the company's ability to meet its short-term obligations using its most liquid assets.
Looking further back, the quick ratio was relatively high at 1.46 in 2021, indicating a stronger liquidity position that year. In 2020, the quick ratio was 1.30, showing a slight decrease from the following year but still representing a healthy liquidity level. The lowest quick ratio within the five-year period was observed in 2019 at 1.04, highlighting a tighter liquidity position that year.
Overall, while the quick ratio of Abbott Laboratories has fluctuated over the years, it has generally remained above 1, suggesting that the company has typically maintained an adequate level of liquidity to meet its short-term obligations. However, it is essential to monitor these fluctuations to ensure the company's continued ability to manage its liquidity effectively.
Peer comparison
Dec 31, 2023