Baxter International Inc (BAX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,764,000 | 3,194,000 | 1,718,000 | 2,951,000 | 3,730,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,511,000 | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 |
| Cash ratio | 0.27 | 0.49 | 0.36 | 0.70 | 1.12 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,764,000K
+ $—K)
÷ $6,511,000K
= 0.27
The cash ratio of Baxter International Inc has shown a decreasing trend over the past five years. Starting at 1.12 in December 2020, the ratio declined to 0.70 by December 2021, indicating a lower ability to cover its current liabilities solely with cash and cash equivalents. This downward trend continued as the ratio dropped to 0.36 by December 2022, suggesting a potential liquidity concern for the company. However, there was a slight improvement in December 2023 with the ratio increasing to 0.49, although still below the initial level. By the end of December 2024, the cash ratio further declined to 0.27, pointing towards a continued strain on Baxter International's liquidity position. It is important for the company to monitor and manage its cash position effectively to ensure it can meet its short-term obligations.
Peer comparison
Dec 31, 2024