Baxter International Inc (BAX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,853,000 | 9,600,000 | 8,011,000 | 8,872,000 | 8,411,000 |
| Total current liabilities | US$ in thousands | 6,511,000 | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 |
| Current ratio | 1.36 | 1.48 | 1.69 | 2.09 | 2.52 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,853,000K ÷ $6,511,000K
= 1.36
The current ratio of Baxter International Inc has shown a decreasing trend over the past five years, starting at 2.52 in December 31, 2020 and declining to 1.36 by December 31, 2024. This indicates that the company's current assets may not be sufficient to cover its current liabilities as effectively as in the past. A current ratio below 2 may raise concerns about the company's short-term liquidity and ability to meet its immediate obligations. It is important for Baxter International Inc to closely monitor its current assets and liabilities to ensure adequate liquidity in the upcoming periods.
Peer comparison
Dec 31, 2024