Baxter International Inc (BAX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,600,000 | 8,011,000 | 8,872,000 | 8,411,000 | 7,503,000 |
| Total current liabilities | US$ in thousands | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 | 3,230,000 |
| Current ratio | 1.48 | 1.69 | 2.09 | 2.52 | 2.32 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,600,000K ÷ $6,503,000K
= 1.48
The current ratio of Baxter International Inc. has exhibited a declining trend over the last five years, decreasing from 2.32 in 2019 to 1.48 in 2023. This indicates that the company's current assets may not be as sufficient to cover its current liabilities as they were in previous years. A current ratio above 1 typically suggests that a company can cover its short-term obligations, but a declining trend may raise concerns about liquidity and ability to meet immediate financial obligations. It is essential for Baxter International Inc. to monitor and potentially improve its current ratio to ensure financial health and stability in the future.
Peer comparison
Dec 31, 2023