Baxter International Inc (BAX)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,764,000 | 1,420,000 | 2,095,000 | 3,026,000 | 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 |
| Short-term investments | US$ in thousands | — | — | 101,000 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 6,511,000 | 6,200,000 | 6,131,000 | 6,365,000 | 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 |
| Cash ratio | 0.27 | 0.23 | 0.36 | 0.48 | 0.49 | 0.93 | 0.30 | 0.35 | 0.36 | 0.43 | 0.47 | 0.59 | 0.70 | 0.95 | 0.94 | 1.00 | 1.12 | 1.27 | 1.42 | 1.35 |
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 been on a declining trend over the analyzed periods. Starting at a relatively healthy level of 1.35 on March 31, 2020, the ratio has decreased consistently to 0.27 by December 31, 2024. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents. A ratio above 1 indicates that the company has enough cash to cover its short-term obligations.
The decreasing trend in the cash ratio may suggest that Baxter International Inc is becoming less liquid over time, potentially facing challenges in meeting its short-term obligations solely from cash holdings. This could indicate that the company might need to rely on other sources of liquidity or financing to fulfill its immediate payment requirements. Additionally, a decreasing cash ratio could also signal inefficient cash management practices or a need for improved working capital management.
Given the downward trajectory of the cash ratio, investors and stakeholders may want to closely monitor Baxter International Inc's liquidity position and assess the company's strategies to address the declining trend and maintain sufficient cash reserves to meet its short-term obligations.
Peer comparison
Dec 31, 2024