Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
AbbVie Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
- Current Ratio
- The current ratio exhibited fluctuations over the observed periods, beginning below 1.0 in early 2021 and showing a peak at 1.01 in September 2021. A decline followed towards the end of 2021, with modest recovery into 2022 until stabilizing around 0.9 to 1.0 through 2023. Notably, a downward trend emerged starting in early 2024, reaching the lowest point in the dataset at approximately 0.65 by September 2024, and slightly recovering but remaining under 0.8 by late 2025. This pattern indicates varying short-term liquidity resilience, with a recent decrease in the company’s ability to cover current liabilities with current assets.
- Quick Ratio
- The quick ratio mirrored the overall trend of the current ratio but at consistently lower levels, reflecting the exclusion of inventory from assets. It increased from about 0.6 in early 2021 to a high near 0.75 in September 2021, then experienced a gradual decline with intermittent rebounds during 2022 and 2023. From early 2024, the quick ratio showed a pronounced decrease, falling below 0.5 by mid-2024 and remaining around that level through 2025. This indicates a weakening capacity to meet short-term obligations with the most liquid assets, pointing to increased reliance on inventory or potential liquidity constraints.
- Cash Ratio
- The cash ratio demonstrated the greatest volatility among the three liquidity metrics, starting at approximately 0.3 in early 2021, peaking over 0.4 at multiple points such as September 2021 and March 2024, and then declining sharply by mid-2024 to below 0.2. After reaching these low levels, it remained subdued through to the end of the period in 2025. This indicates a diminishing cash and cash equivalents buffer available for covering immediate liabilities, suggesting a tighter liquidity position in terms of the most liquid assets.
- Overall Analysis
- The general liquidity posture over the observed timeframe indicates initial stability and moderate strength in short-term financial health through 2021 and 2022, followed by a trend of deterioration starting in 2024. The decline across current, quick, and cash ratios in the latter periods signals increasing pressure on the company's ability to meet obligations with readily available assets. This could reflect changes in working capital management, increased short-term liabilities, or reduced cash reserves. Close monitoring of liquidity and potential actions to improve it may be warranted given the current trajectory.
Current Ratio
AbbVie Inc., current ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets demonstrated moderate fluctuations over the observed periods. Initially, the values ranged around 26,500 to 29,000 million USD, with notable peaks in September 2021 and continuing elevated levels through mid-2022. A significant increase is evident at the start of 2024, reaching nearly 39,000 million USD in March 2024, before a subsequent decline through to late 2025. Overall, current assets show variability without a clear sustained upward or downward long-term trend.
- Current Liabilities
- Current liabilities exhibited more volatility, starting around 31,951 million USD and dipping below 29,000 million USD in late 2021 to early 2022. This was followed by a general uptrend from late 2022 to early 2024, peaking above 41,500 million USD in March 2024. After this peak, current liabilities slightly decreased but remained elevated relative to earlier periods, fluctuating between approximately 36,000 and 39,000 million USD through the end of 2025.
- Current Ratio
- The current ratio showed a pattern of periodic decline and recovery but trended downward overall. Starting below 1.0 at 0.83 in early 2021, it momentarily reached or exceeded 1.0 in late 2021 and mid-2022, indicating periods where current assets slightly exceeded current liabilities. However, by late 2024 and into 2025, the ratio consistently stayed below 0.8, reaching as low as 0.65. This decline signals increasing pressure on short-term liquidity, with current liabilities growing faster than current assets.
- Summary Insights
- The financial data reveals that while current assets fluctuated without a clear directional trend, current liabilities increased notably, especially from late 2022 to early 2024. This divergence led to a declining current ratio, suggesting weakening liquidity coverage. The sustained low current ratio in the more recent periods highlights potential challenges in meeting short-term obligations purely through current assets, which may warrant further analysis of cash flow and working capital management strategies.
Quick Ratio
AbbVie Inc., quick ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets show a fluctuating pattern over the observed quarters. Initial values declined slightly from around 19,365 million US dollars in early 2021 to approximately 18,305 million by the first quarter of 2022. This was followed by an upward adjustment reaching up to 30,018 million by early 2024, representing a peak in the data set. After this peak, the quick assets notably decreased, ending around 18,440 million by the third quarter of 2025. The trend reflects volatility with short periods of recovery after declines but an overall reduction in the latest periods.
- Trend in Current Liabilities
- Current liabilities also exhibit volatility across the timeline. Beginning at 31,951 million US dollars in the first quarter of 2021, liabilities decreased to a low point near 27,590 million by early 2023. However, a substantial increase followed, with liabilities peaking at 43,062 million roughly by the first quarter of 2025 before a slight reduction to around 39,391 million in the third quarter of 2025. This pattern indicates an increasing burden of short-term obligations, especially during the latter half of the period.
- Analysis of Quick Ratio
- The quick ratio demonstrates a generally weak liquidity position throughout the timeframe, frequently falling below the ideal benchmark of 1. The ratio started at 0.61 in the first quarter of 2021, rising modestly to a peak of around 0.75 in the third quarter of 2021. Thereafter, it showed a downward trajectory with intermittent recoveries, but the later quarters reveal a decline to levels between 0.43 and 0.48, indicating diminishing short-term asset coverage relative to current liabilities. This decreasing trend in liquidity suggests increasing pressure on the company's ability to meet its short-term obligations promptly.
- Overall Financial Insights
- Throughout the observed period, quick assets and current liabilities have both exhibited notable volatility, but the latter's upward trend in recent quarters outpaces the growth in quick assets, contributing to a declining quick ratio. This signals potential liquidity challenges as the company’s liquid assets become increasingly insufficient to cover its current liabilities. Careful attention to managing short-term obligations and enhancing liquid asset reserves would be prudent to improve financial stability.
Cash Ratio
AbbVie Inc., cash ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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: 2025-09-30), 10-Q (reporting date: 2025-06-30), 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).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- Over the examined periods, total cash assets exhibited notable volatility. Initially, cash assets declined from 9,777 million USD to 7,572 million USD in early 2022, followed by a recovery reaching a peak of 18,069 million USD by the first quarter of 2024. Subsequently, a consistent downward trajectory is observed with cash assets decreasing to 5,671 million USD by the third quarter of 2025. The fluctuations suggest episodic liquidity management, possibly reflecting varying operational cash flows, investment activity, or financing decisions.
- Current Liabilities
- Current liabilities have demonstrated a generally upward trend over the analyzed timeline. Starting at 31,951 million USD in the first quarter of 2021, there were periods of both increase and decrease, but a clearer rising pattern emerges after 2022. The liabilities peaked around 43,062 million USD in the first quarter of 2025 before slightly decreasing towards the third quarter of 2025 to approximately 39,391 million USD. This increase in current liabilities could indicate growing short-term obligations or financing requirements.
- Cash Ratio
- The cash ratio, representing liquidity in terms of cash relative to current liabilities, has fluctuated with a general downward tendency, especially in later periods. Initially, the ratio hovered around 0.3 to 0.4, with peaks like 0.44 in early 2024, indicating relatively higher liquidity levels. However, from mid-2024 onwards, the ratio declined sharply to 0.14–0.17 range by mid-2025, reflecting reduced immediate liquidity coverage against current obligations. This decline in cash ratio may suggest increased risk related to short-term liquidity or a strategic shift in working capital management.
- Overall Insights
- The data reveal a pattern where cash resources peak and trough in cycles that do not always correspond directly with current liabilities movements, highlighting dynamic liquidity management. The rising current liabilities coupled with a decreasing cash ratio in the latter periods points towards pressure on short-term liquidity that may warrant closer financial scrutiny or strategic response. The company's ability to maintain adequate liquidity amidst growing obligations will be critical for maintaining financial stability.