Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
GlaxoSmithKline PLC, liquidity ratios
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.10 | 1.11 | 0.99 | 1.08 | 1.25 | |
| Quick ratio | 0.66 | 0.79 | 0.67 | 0.74 | 0.92 | |
| Cash ratio | 0.33 | 0.41 | 0.31 | 0.39 | 0.49 |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | GlaxoSmithKline PLC current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | GlaxoSmithKline PLC quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | GlaxoSmithKline PLC cash ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |
Current Ratio
GlaxoSmithKline PLC, current ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Current assets | 24,790) | 25,235) | 22,267) | 25,120) | 24,682) | |
| Current liabilities | 22,454) | 22,667) | 22,467) | 23,322) | 19,692) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.10 | 1.11 | 0.99 | 1.08 | 1.25 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,790 ÷ 22,454 = 1.10
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | GlaxoSmithKline PLC current ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014. |
Quick Ratio
GlaxoSmithKline PLC, quick ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Trade receivables, net of provision for bad and doubtful debts | 6,006) | 6,573) | 6,692) | 6,900) | 7,276) | |
| Employee loans and advances | 47) | 61) | 65) | 64) | 77) | |
| Other receivables | 1,213) | 1,889) | 1,286) | 1,158) | 1,142) | |
| Liquid investments | 117) | 109) | 132) | 286) | 283) | |
| Cash and cash equivalents | 7,326) | 9,171) | 6,804) | 8,878) | 9,323) | |
| Total quick assets | 14,709) | 17,804) | 14,980) | 17,286) | 18,101) | |
| Current liabilities | 22,454) | 22,667) | 22,467) | 23,322) | 19,692) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.66 | 0.79 | 0.67 | 0.74 | 0.92 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 14,709 ÷ 22,454 = 0.66
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | GlaxoSmithKline PLC quick ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Cash Ratio
GlaxoSmithKline PLC, cash ratio calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Liquid investments | 117) | 109) | 132) | 286) | 283) | |
| Cash and cash equivalents | 7,326) | 9,171) | 6,804) | 8,878) | 9,323) | |
| Total cash assets | 7,443) | 9,281) | 6,936) | 9,164) | 9,606) | |
| Current liabilities | 22,454) | 22,667) | 22,467) | 23,322) | 19,692) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.33 | 0.41 | 0.31 | 0.39 | 0.49 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,443 ÷ 22,454 = 0.33
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | GlaxoSmithKline PLC cash ratio improved from 2012 to 2013 but then slightly deteriorated from 2013 to 2014 not reaching 2012 level. |