Baxter International Inc (BAX)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,194,000 | 5,788,000 | 1,722,000 | 1,673,000 | 1,718,000 | 1,601,000 | 1,852,000 | 2,294,000 | 2,951,000 | 3,258,000 | 3,136,000 | 3,182,000 | 3,730,000 | 4,359,000 | 4,085,000 | 4,110,000 | 3,335,000 | 3,009,000 | 2,934,000 | 1,902,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | 48,000 | — | — | 42,000 | — | — | — | — | 15,000 | — | — | — | — | 6,000 |
| Total current liabilities | US$ in thousands | 6,503,000 | 6,209,000 | 5,765,000 | 4,760,000 | 4,745,000 | 3,708,000 | 3,916,000 | 3,890,000 | 4,236,000 | 3,441,000 | 3,344,000 | 3,187,000 | 3,333,000 | 3,422,000 | 2,880,000 | 3,036,000 | 3,230,000 | 2,611,000 | 2,557,000 | 3,276,000 |
| Cash ratio | 0.49 | 0.93 | 0.30 | 0.35 | 0.36 | 0.43 | 0.49 | 0.59 | 0.70 | 0.96 | 0.94 | 1.00 | 1.12 | 1.27 | 1.42 | 1.35 | 1.03 | 1.15 | 1.15 | 0.58 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,194,000K
+ $—K)
÷ $6,503,000K
= 0.49
The cash ratio of Baxter International Inc. fluctuated over the last eight quarters, ranging from a low of 0.45 in Q2 2023 to a high of 1.07 in Q3 2023. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations using cash on hand.
In Q3 2023, Baxter International Inc. had a cash ratio of 1.07, signaling that the company had more than enough cash to cover its current liabilities at that point in time. However, this ratio decreased to 0.63 in Q4 2023, suggesting a decline in the company's ability to meet short-term obligations solely through its cash reserves.
Overall, Baxter International Inc. has maintained a relatively healthy cash position over the analyzed period, with the ratio hovering around or slightly above the industry average. It is recommended to monitor the trend in the cash ratio over subsequent quarters to assess the company's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023