Baxter International Inc (BAX)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,764,000K
+ $—K
+ $—K)
÷ $6,511,000K
= 0.27
The quick ratio of Baxter International Inc has been declining over the past five years, indicating a potential weakening liquidity position. As of December 31, 2024, the quick ratio stands at 0.27, representing a significant decrease from 1.35 on March 31, 2020.
A quick ratio below 1 suggests that the company may have difficulties meeting its short-term obligations using its most liquid assets. Baxter International Inc should closely monitor its cash reserves, marketable securities, and receivables to ensure it can cover its current liabilities effectively.
The fluctuation in the quick ratio over time may indicate changes in the company's cash management practices, efficiency of inventory management, or the ability to collect accounts receivables promptly. Management should analyze the underlying reasons for the decline in the quick ratio and take appropriate steps to improve liquidity and financial stability.
Peer comparison
Dec 31, 2024