Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
AbbVie Inc., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.84 | 3.18 | 0.98 | 1.28 | 1.65 | |
| Quick ratio | 0.60 | 2.91 | 0.78 | 0.89 | 1.14 | |
| Cash ratio | 0.30 | 2.56 | 0.47 | 0.59 | 0.66 |
Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | AbbVie Inc.’s current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | AbbVie Inc.’s quick ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | AbbVie Inc.’s cash ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Current Ratio
AbbVie Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 24,173 | 49,519 | 16,945 | 21,223 | 16,187 | |
| Current liabilities | 28,661 | 15,585 | 17,239 | 16,641 | 9,781 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.84 | 3.18 | 0.98 | 1.28 | 1.65 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Amgen Inc. | 1.81 | 1.44 | 2.79 | 5.49 | 4.11 | |
| Eli Lilly & Co. | 1.40 | 1.16 | 1.73 | 1.32 | 1.37 | |
| Gilead Sciences Inc. | 1.40 | 3.10 | 3.38 | 2.74 | 2.22 | |
| Illumina Inc. | 3.60 | 6.69 | 2.49 | 3.99 | 3.29 | |
| Johnson & Johnson | 1.21 | 1.26 | 1.47 | 1.41 | 2.47 | |
| Merck & Co. Inc. | 1.02 | 1.24 | 1.17 | 1.33 | 1.78 | |
| Pfizer Inc. | 1.35 | 0.88 | 1.57 | 1.35 | 1.25 | |
| Regeneron Pharmaceuticals Inc. | 3.63 | 3.67 | 4.47 | 3.82 | 2.56 | |
| Thermo Fisher Scientific Inc. | 2.13 | 1.92 | 1.73 | 1.34 | 1.44 | |
| Zoetis Inc. | 3.05 | 2.63 | 3.60 | 3.85 | 3.03 | |
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.34 | 1.58 | 1.74 | 1.78 | 2.01 | |
| Current Ratio, Industry | ||||||
| Health Care | 1.24 | 1.40 | 1.44 | 1.54 | 1.69 | |
Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,173 ÷ 28,661 = 0.84
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. | AbbVie Inc.’s current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Quick Ratio
AbbVie Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 8,449 | 39,924 | 7,289 | 9,303 | 5,100 | |
| Short-term investments | 30 | — | 772 | 486 | 1,323 | |
| Accounts receivable, net | 8,822 | 5,428 | 5,384 | 5,088 | 4,758 | |
| Total quick assets | 17,301 | 45,352 | 13,445 | 14,877 | 11,181 | |
| Current liabilities | 28,661 | 15,585 | 17,239 | 16,641 | 9,781 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.60 | 2.91 | 0.78 | 0.89 | 1.14 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Amgen Inc. | 1.30 | 1.01 | 2.44 | 4.98 | 3.68 | |
| Eli Lilly & Co. | 0.85 | 0.68 | 1.20 | 0.91 | 0.98 | |
| Gilead Sciences Inc. | 1.08 | 2.86 | 3.15 | 2.52 | 1.78 | |
| Illumina Inc. | 3.18 | 6.00 | 2.23 | 3.43 | 2.75 | |
| Johnson & Johnson | 0.91 | 0.94 | 1.08 | 1.04 | 2.04 | |
| Merck & Co. Inc. | 0.58 | 0.78 | 0.72 | 0.83 | 1.24 | |
| Pfizer Inc. | 0.78 | 0.50 | 0.84 | 0.93 | 0.84 | |
| Regeneron Pharmaceuticals Inc. | 2.86 | 2.81 | 3.50 | 2.98 | 2.13 | |
| Thermo Fisher Scientific Inc. | 1.56 | 1.09 | 1.01 | 0.74 | 0.79 | |
| Zoetis Inc. | 2.13 | 1.67 | 2.24 | 2.34 | 1.47 | |
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.92 | 1.17 | 1.27 | 1.35 | 1.54 | |
| Quick Ratio, Industry | ||||||
| Health Care | 0.88 | 1.03 | 1.04 | 1.16 | 1.28 | |
Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 17,301 ÷ 28,661 = 0.60
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. | AbbVie Inc.’s quick ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |
Cash Ratio
AbbVie Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 8,449 | 39,924 | 7,289 | 9,303 | 5,100 | |
| Short-term investments | 30 | — | 772 | 486 | 1,323 | |
| Total cash assets | 8,479 | 39,924 | 8,061 | 9,789 | 6,423 | |
| Current liabilities | 28,661 | 15,585 | 17,239 | 16,641 | 9,781 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.30 | 2.56 | 0.47 | 0.59 | 0.66 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Amgen Inc. | 0.91 | 0.69 | 2.17 | 4.62 | 3.40 | |
| Eli Lilly & Co. | 0.29 | 0.21 | 0.68 | 0.55 | 0.55 | |
| Gilead Sciences Inc. | 0.65 | 2.50 | 2.84 | 2.19 | 1.29 | |
| Illumina Inc. | 2.79 | 5.13 | 1.95 | 2.88 | 2.21 | |
| Johnson & Johnson | 0.59 | 0.54 | 0.63 | 0.60 | 1.59 | |
| Merck & Co. Inc. | 0.30 | 0.47 | 0.40 | 0.46 | 0.83 | |
| Pfizer Inc. | 0.47 | 0.26 | 0.59 | 0.66 | 0.57 | |
| Regeneron Pharmaceuticals Inc. | 1.33 | 1.53 | 1.95 | 1.24 | 0.84 | |
| Thermo Fisher Scientific Inc. | 1.00 | 0.39 | 0.34 | 0.19 | 0.16 | |
| Zoetis Inc. | 1.66 | 1.07 | 1.39 | 1.43 | 0.65 | |
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.55 | 0.81 | 0.89 | 0.98 | 1.14 | |
| Cash Ratio, Industry | ||||||
| Health Care | 0.49 | 0.64 | 0.64 | 0.76 | 0.86 | |
Based on: 10-K (filing date: 2021-02-19), 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,479 ÷ 28,661 = 0.30
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. | AbbVie Inc.’s cash ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020. |