Baxter International Inc (BAX)

Liquidity ratios

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
Current ratio 1.36 1.43 1.40 1.48 1.48 1.94 1.42 1.70 1.69 2.11 2.01 2.10 2.09 2.37 2.39 2.47 2.52 2.64 2.97 2.74
Quick 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
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

The liquidity ratios of Baxter International Inc indicate the company's ability to meet its short-term obligations. The current ratio has shown a declining trend from 2.74 in March 2020 to 1.36 in December 2024. This may raise concerns about the company's ability to cover its current liabilities with its current assets.

The quick ratio has also exhibited a similar downward trend, falling from 1.35 in March 2020 to 0.27 in December 2024. This indicates a decreasing ability to meet short-term obligations without relying on inventory.

Furthermore, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and equivalents, has seen a significant decrease over the years from 1.35 in March 2020 to 0.27 in December 2024. This suggests a decreasing ability to repay short-term liabilities solely with cash on hand.

Overall, the declining liquidity ratios of Baxter International Inc raise concerns about its short-term financial stability and ability to meet its immediate obligations. Further analysis and monitoring of the company's liquidity position are recommended to assess its short-term financial health.


See also:

Baxter International Inc Liquidity Ratios (Quarterly Data)


Additional liquidity measure

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 conversion cycle days 92.37 88.19 113.15 110.79 104.10 105.78 106.14 110.42 102.11 103.87 112.17 112.91 116.60 97.75 101.40 101.57 98.69 106.13 104.07 92.53

The cash conversion cycle of Baxter International Inc has shown fluctuations over the past few years. The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory and other resources back into cash flow.

Observing the data provided, the cash conversion cycle has ranged between 88.19 days to 116.60 days. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert inventory into sales and then cash relatively quickly.

Analyzing the trend, it appears that the company experienced a peak in the cash conversion cycle in December 2021, which might indicate that there were delays in converting inventory into cash during that period. However, it improved in September 2024, as the cycle decreased significantly to 88.19 days.

Overall, Baxter International Inc should aim to minimize its cash conversion cycle to improve its working capital efficiency and ensure smooth cash flow operations. It may need to focus on optimizing inventory management and accelerating the collection of receivables to shorten the cycle and enhance overall financial performance.