Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio exhibited a significant decline from 3.14 at the end of March 2020 to values consistently below 1.0 in the subsequent quarters, indicating a reduction in short-term liquidity relative to current liabilities. From mid-2020 through 2025, the ratio fluctuated within a narrow band mostly between 0.65 and 1.01, with occasional minor recoveries but never returning to the initial high level. This suggests a persistent tightening of current assets compared to current liabilities, potentially reflecting changes in working capital management or liability structure.
- Quick Ratio
- The quick ratio mirrored the downward trend observed in the current ratio. It dropped sharply from 2.88 in March 2020 to below 1.0 from June 2020 onward, typically ranging between 0.43 and 0.75 in the following quarters. The slightly lower values relative to the current ratio indicate a smaller proportion of immediate liquidity (excluding inventories). The trend shows moderate volatility but an overall stable yet reduced quick liquidity position over the period analyzed.
- Cash Ratio
- The cash ratio also experienced a pronounced decline from a high level of 2.5 in March 2020 to approximately 0.14-0.44 in the later quarters. This ratio, reflecting the most liquid assets relative to current liabilities, remained low and relatively stable from mid-2021 onward, with occasional small recoveries but no sustained improvement. The low and declining cash ratio points to a significantly reduced cash buffer relative to short-term obligations, which could have implications for immediate cash flow flexibility.
Current Ratio
Mar 31, 2025 | 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 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Current assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Current ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Vertex Pharmaceuticals Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analyzed data reveals several notable trends relating to the company's liquidity over the observed periods.
- Current Assets
- Current assets exhibit significant fluctuations throughout the periods, starting at a high level of approximately 51.8 billion US dollars in March 2020, then sharply declining to around 21.3–23.0 billion US dollars mid-2020, and showing a generally moderate recovery towards late 2020 and early 2021. From early 2021 onwards, current assets remain relatively stable but with periods of moderate increase and decrease, peaking at approximately 38.9 billion US dollars in March 2024, before declining again towards the end of the data set to about 27.7 billion US dollars in March 2025.
- Current Liabilities
- Current liabilities start at approximately 16.5 billion US dollars in March 2020 and increase markedly through 2020 and early 2021, peaking at around 35.2 billion US dollars at the end of 2021. Following this peak, there are continued fluctuations but a general upward trend until reaching the highest observed value of approximately 43.1 billion US dollars in September 2024. A subsequent decline occurs approaching March 2025, ending near 36.4 billion US dollars.
- Current Ratio
- The current ratio displays a decreasing trend from the initial high of 3.14 in March 2020 to values consistently below 1.0 during most subsequent periods. There are brief recoveries close to or slightly above 1.0 around September 2020 and September 2021; however, the ratio mostly remains below 1.0, indicating potential short-term liquidity constraints. The ratio declines further after mid-2023, reaching its lowest values around 0.65 to 0.66 in late 2024 and early 2025 before a minor improvement to 0.76 by March 2025.
Overall, the data suggests that while current assets have varied with intermittent peaks and troughs, current liabilities have generally increased over the period, contributing to a declining current ratio. This declining liquidity ratio indicates growing pressure on the company's short-term financial stability, with the ratio mostly below the generally accepted benchmark of 1.0. The sharp decline from early 2020 and sustained low current ratios thereafter warrant monitoring to ensure sufficient liquidity to meet short-term obligations.
Quick Ratio
Mar 31, 2025 | 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 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Accounts receivable, net | ||||||||||||||||||||||||||||
Total quick assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Quick ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Vertex Pharmaceuticals Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly quick assets, current liabilities, and quick ratio reveals several notable trends and patterns over the observed period.
- Total Quick Assets
- The total quick assets demonstrated significant fluctuation throughout the timeline. Initially, there is a sharp decline from approximately $47.5 billion at the end of March 2020 to roughly $14.4 billion in June 2020. Following this drop, the quick assets generally oscillate between $18 billion and $24 billion across most quarters, showing occasional peaks, such as near $30 billion in March 2024. However, toward the later quarters, there is a noticeable declining trend with quick assets dropping below $18 billion by March 2025.
- Current Liabilities
- Current liabilities have consistently increased over the period, rising from about $16.5 billion in March 2020 to a peak of approximately $43 billion in September 2024. The growth is relatively steady, with occasional accelerations, such as between December 2023 and September 2024. Some reduction is visible in the final recorded quarters, dropping to around $36.4 billion by March 2025.
- Quick Ratio
- The quick ratio reflects the relationship between liquid assets and current liabilities and shows a declining pattern overall. It starts very strong at 2.88 in March 2020 but experiences a steep fall to below 1 by June 2020, maintaining relatively low values mostly under 0.75 thereafter. There are minor recoveries and fluctuations, peaking at 0.72 in June 2024, but the general direction is downward toward the end of the period where values decrease to around 0.43-0.48. This trend indicates a weakening short-term liquidity position relative to liabilities.
In summary, while total quick assets show volatility without a clear sustained upward or downward trend after an early drop, current liabilities consistently increase, exerting pressure on liquidity. Consequently, despite occasional improvements, the quick ratio deteriorates over time, signaling a gradual decrease in the company's ability to cover its current obligations with its most liquid assets. This pattern suggests increasing reliance on current liabilities and potentially tighter liquidity management challenges in more recent periods.
Cash Ratio
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Total cash assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Cash ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||||
Vertex Pharmaceuticals Inc. |
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals notable fluctuations and trends over the examined periods with respect to liquidity and working capital metrics.
- Total Cash Assets
-
Total cash assets exhibit significant volatility throughout the periods. An initial sharp decline is observed from a peak value of 41,142 million US dollars at the beginning of 2020 down to values fluctuating mostly between approximately 5,000 and 18,000 million US dollars in subsequent quarters. There is no consistent upward or downward trend but rather repeated rises and falls, with the highest values after the initial quarter occurring around the middle of 2024.
- Current Liabilities
-
Current liabilities generally increase over time with some fluctuations. From around 16,471 million US dollars in early 2020, the liabilities grow sharply to a range mostly between 27,000 and 43,000 million US dollars in the later periods. The growth is relatively steady, peaking near the end of 2024. A slight decrease is observed in the final reported quarter but liabilities remain significantly higher than at the start of the dataset.
- Cash Ratio
-
The cash ratio, measuring the proportion of cash assets relative to current liabilities, demonstrates a declining trend over the course of the data. Starting at a very strong liquidity position of 2.5 early in 2020, the ratio rapidly falls below 0.5 in subsequent quarters, commonly ranging between about 0.14 and 0.44. The ratio reaches its lowest values in the later periods, particularly in 2024 and 2025, signaling a decrease in the immediate liquidity buffer relative to short-term obligations.
- Overall Insights
-
The data implies that while cash assets are fluctuating without a clear long-term trend, current liabilities are persistently increasing, exerting downward pressure on liquidity ratios. The declining cash ratio suggests increasing reliance on other sources of liquidity or financing to meet current obligations. The company's cash buffer relative to liabilities has weakened significantly since early 2020, which could imply heightened risk in the ability to cover near-term liabilities solely with cash or cash equivalents.