Baxter International Inc (BAX)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 3,335,000 | 3,009,000 | 2,934,000 | 1,902,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | 48,000 | — | — | 42,000 | — | — | — | — | 15,000 | — | — | — | — | 6,000 |
| Receivables | US$ in thousands | 2,880,000 | 2,512,000 | 2,495,000 | 2,547,000 | 2,848,000 | 2,555,000 | -125,000 | -129,000 | 2,828,000 | -115,000 | -117,000 | -120,000 | 2,240,000 | -122,000 | -120,000 | -114,000 | 2,036,000 | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 3,230,000 | 2,611,000 | 2,557,000 | 3,276,000 |
| Quick ratio | 0.93 | 1.34 | 0.73 | 0.89 | 0.96 | 1.12 | 0.45 | 0.56 | 1.36 | 0.93 | 0.90 | 0.96 | 1.79 | 1.24 | 1.38 | 1.32 | 1.66 | 1.15 | 1.15 | 0.58 |
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 of Baxter International Inc. fluctuated over the last eight quarters, ranging from 0.88 to 1.48. The quick ratio measures a company's ability to meet its short-term obligations using its most liquid assets.
In Q3 2023, the quick ratio was notably high at 1.48, indicating a strong ability to cover short-term liabilities with liquid assets. However, in Q2 2023, the quick ratio dropped to 0.88, which could raise concerns about the company's short-term liquidity position.
Overall, the quick ratio for Baxter International Inc. has shown some variability, but it generally remained above 1, except for Q2 2023. This suggests that the company has generally been able to meet its short-term obligations comfortably with its liquid assets.
It would be advisable for investors and stakeholders to further investigate the reasons behind the fluctuations in the quick ratio and assess whether they are indicative of any underlying issues in the company's liquidity management.
Peer comparison
Dec 31, 2023