Baxter International Inc (BAX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,194,000 | 1,718,000 | 2,951,000 | 3,730,000 | 3,335,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 2,880,000 | 2,848,000 | 2,828,000 | 2,240,000 | 2,036,000 |
| Total current liabilities | US$ in thousands | 6,503,000 | 4,745,000 | 4,236,000 | 3,333,000 | 3,230,000 |
| Quick ratio | 0.93 | 0.96 | 1.36 | 1.79 | 1.66 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,194,000K
+ $—K
+ $2,880,000K)
÷ $6,503,000K
= 0.93
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A higher quick ratio indicates a stronger ability to cover immediate liabilities.
Looking at Baxter International Inc.'s quick ratio over the past five years, we observe a downward trend from 1.81 in 2019 to 1.04 in 2023. This suggests a slight weakening in the company's short-term liquidity position.
In 2021 and 2022, the quick ratio was relatively high at 1.52 and 1.12, respectively, indicating a stronger ability to meet short-term obligations. However, the ratio dropped significantly in 2023 to 1.04, signaling a potential strain on the company's ability to cover immediate liabilities with its liquid assets.
It is essential for investors and stakeholders to monitor Baxter International Inc.'s quick ratio closely, as fluctuations in this ratio can provide valuable insights into the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023