AbbVie Inc. (NYSE:ABBV)

Current Ratio

The current ratio displayed moderate fluctuation over the observed periods, generally staying below 1. From early 2021 through mid-2022, there was a gradual increase, peaking near 0.96 by December 2022. Following that peak, a downward trend is noticeable, with the ratio declining to a low of 0.65 in September 2024 before showing a slight rebound to 0.74 by mid-2025. This pattern indicates some volatility in short-term liquidity, suggesting challenges in covering current liabilities with current assets in the later periods.

Quick Ratio

The quick ratio exhibited a similar trend to the current ratio but maintained a lower level throughout the timeframe. Initial growth occurred from 0.61 in March 2021 to around 0.69 by the end of 2022. Subsequently, there was a marked decline beginning in early 2023, reaching roughly 0.44 by late 2024. Despite a minor improvement towards mid-2025, the ratio remained below earlier highs. This decline suggests a weakening in the company's ability to meet short-term obligations without relying on inventory sales.

Cash Ratio

The cash ratio showed significant variability, with values mostly below 0.5 across all periods, indicating limited immediate cash availability relative to current liabilities. After peaking at 0.44 in March 2024, the ratio dropped sharply to as low as 0.14 by mid-2025. The earlier periods showed some improvement from 0.31 in early 2021 to 0.38 by September 2023, but the downward movement afterward highlights a reduction in the most liquid assets, potentially raising concerns regarding the company's capacity to cover obligations using only cash and cash equivalents.

Over the observed period, current assets display fluctuations with a generally moderate upward trend reaching a peak of 38,871 million US dollars in the first quarter of 2024, followed by a decline in subsequent quarters to 27,675 million US dollars in the third quarter of 2024 before stabilizing around 29,000 million US dollars towards mid-2025.

Current liabilities also exhibit variability, initially decreasing from nearly 32,000 million US dollars in early 2021 to a low near 29,500 million in late 2021, then rising substantially to a peak exceeding 43,000 million US dollars in the third quarter of 2024. This is followed by a reduction to about 36,400 million US dollars in early 2025 before increasing again to nearly 40,000 million US dollars by mid-2025.

The current ratio mirrors these movements, generally remaining below 1.0 throughout the entire period, indicating that current liabilities consistently exceed current assets. It begins around 0.83 in early 2021, temporarily improves to slightly above 1.0 in the third quarter of 2021 but then declines again below 1.0. From 2022 onwards, the current ratio oscillates mostly between 0.65 and 0.96, hitting the lowest point of 0.65 in the third quarter of 2024. This suggests ongoing liquidity pressures with limited short-term financial cushion.

Current Assets

Show moderate growth with peaks and troughs; the highest level was observed in Q1 2024, followed by decreases and relative stabilization.

Current Liabilities

Experience greater volatility and an overall upward trend with notable peaks in late 2023 and mid-2024, implying increased short-term obligations.

Current Ratio

Persistent sub-1.0 values indicate potential liquidity concerns, with intermittent minor improvements but a general weakening of the company's ability to cover short-term liabilities with current assets.

In summary, the data reveal a company managing sizable and fluctuating current liabilities, with current assets not consistently maintaining a sufficient level to improve liquidity ratios significantly. The suboptimal current ratio throughout the periods warrants attention to short-term financial risk management strategies.

Total Quick Assets

The total quick assets exhibit a fluctuating trend over the period analyzed. Initial values start near 19.4 billion USD and experience moderate increases and decreases throughout. There is a notable peak in the first quarter of 2024, reaching approximately 30.0 billion USD, followed by a considerable decline in subsequent quarters, ending at around 19.1 billion USD by mid-2025. This pattern suggests periods of increased liquidity interspersed with contractions, possibly indicative of strategic liquidity management or fluctuations in receivables and other liquid assets.

Current Liabilities

Current liabilities generally show an increasing tendency from roughly 32.0 billion USD in early 2021 to a high point exceeding 41.9 billion USD in mid-2024. After reaching this peak, liabilities decline modestly but remain elevated in the range of 36.4 to 39.8 billion USD through mid-2025. This escalation indicates growing short-term obligations, which may reflect operational expansion, increased payables, or other short-term funding requirements.

Quick Ratio

The quick ratio fluctuates between 0.43 and 0.75 over the observed timeframe. Early 2021 values hover around 0.6 to 0.75, reflecting a moderate ability to cover current liabilities with quick assets. The ratio decreases sharply starting in late 2023 into 2024, falling below 0.5, indicating a weakening liquidity position where quick assets are less sufficient to meet current liabilities promptly. This decline, despite some recovery mid-period, suggests increased liquidity risk or tighter working capital conditions in recent quarters.

Summary Insights

The company's liquidity positions, as evidenced by total quick assets and the quick ratio, display variability with a general weakening trend in the most recent periods. While total quick assets reached a high in early 2024, current liabilities increased more aggressively, resulting in a deteriorated quick ratio. This divergence points to possible challenges in maintaining sufficient short-term liquidity to cover obligations, raising considerations for cash flow management and short-term financial stability.

Total Cash Assets

The total cash assets displayed significant fluctuations over the observed quarters. Early in the timeline, cash balances ranged between approximately $7.5 billion and $12.2 billion, showing volatility but generally maintaining a moderate level. A notable peak occurred in the quarter ending September 2023, reaching nearly $13.3 billion, followed by a further increase to over $18 billion by March 2024. After this peak, there was a marked decline through late 2024 and into 2025, with cash assets dropping as low as $5.5 billion in June 2025 before a slight recovery to around $6.5 billion in the subsequent quarter. This pattern indicates episodes of substantial cash accumulation followed by drawdowns, possibly reflecting cyclical operational or investment activities.

Current Liabilities

Current liabilities showed a generally rising trend across the periods. Starting at around $31.9 billion in the first quarter of 2021, the liabilities experienced some short-term decreases but largely increased over time, peaking near $43.1 billion by September 2024. The highest levels were observed in late 2023 and early 2024, with values consistently above $41 billion. After the peak, there was a mild decrease into mid-2025, though the liabilities still remained elevated relative to earlier years. This upward trend in current liabilities might indicate growing short-term financial obligations or increased operational scale requiring more working capital.

Cash Ratio

The cash ratio, indicative of the company's liquidity position relative to its current liabilities, exhibited considerable variability but with an overall declining trend in later periods. Initially, the ratio fluctuated around 0.3 to 0.4, with some peaks reaching 0.44 in early 2024. However, from mid-2024 onwards, the cash ratio decreased significantly, falling to as low as 0.14 by mid-2025. Despite occasional minor rebounds, liquidity levels appear to have weakened relative to current liabilities in the most recent quarters. This decline suggests increased pressure on the company’s immediate liquidity, potentially heightening solvency risk or signaling a strategic allocation of cash to other uses.

Summary Insight

The data reveals that while cash assets have experienced periods of accumulation, particularly in early 2024, the company also faced rising current liabilities over the timeframe. The deceleration in the cash ratio in later quarters highlights a reduction in liquid resources relative to obligations, indicating tighter short-term financial flexibility. The combination of rising liabilities and diminishing liquidity ratios points to a potential need for careful cash management going forward to ensure adequate coverage of near-term commitments.