Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Abbott Laboratories, liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 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).
The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally stable, though slightly declining, trend over the observed period. While fluctuations exist, the ratios generally remain within a relatively narrow range, suggesting consistent short-term solvency. A closer examination of each ratio reveals specific patterns.
- Current Ratio
- The current ratio began at 1.85 and exhibited initial improvement, peaking at 2.01 before declining to 1.63 by the end of 2022. Throughout 2023 and into 2024, the ratio remained relatively stable, fluctuating between 1.60 and 1.68. A slight upward movement is observed in early 2025, reaching 1.78 and 1.82, before receding to 1.70 and 1.58 by the end of the period. This suggests a moderate ability to cover short-term liabilities with short-term assets, with some recent weakening.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, starting at 1.21 and increasing to 1.33. It then decreased to 1.06 by the end of 2022. The ratio remained largely consistent throughout 2023 and 2024, oscillating around 1.00-1.05. An incremental increase is noted in the first half of 2025, reaching 1.14, followed by a decline to 1.09 and 1.02. This indicates a consistent, but somewhat limited, ability to meet immediate obligations with the most liquid assets.
- Cash Ratio
- The cash ratio demonstrated the most consistent downward trend. Beginning at 0.65, it experienced a slight increase to 0.75 before declining to 0.66 by the end of 2022. The ratio continued to decrease throughout 2023 and 2024, reaching 0.47 in early 2024. A minor recovery occurred in the first half of 2025, rising to 0.54, but remained at this level through the end of the observed period. This suggests a decreasing proportion of current assets held in cash, potentially indicating investment in other assets or debt repayment.
Overall, the observed trends suggest a gradual, albeit moderate, decrease in overall liquidity. While the company maintains a reasonable ability to cover short-term obligations, the declining cash ratio warrants monitoring. The stability of the quick ratio suggests that the decrease in the current ratio is primarily driven by changes in inventory or other current assets less readily convertible to cash.
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Current Ratio
Abbott Laboratories, current ratio calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 25,996) | 24,839) | 24,468) | 23,153) | 23,656) | 23,802) | 23,119) | 22,376) | 22,670) | 22,664) | 23,505) | 24,377) | 25,224) | 24,845) | 24,956) | 23,429) | |||||
| Current liabilities | 16,496) | 14,582) | 13,439) | 13,004) | 14,157) | 14,902) | 13,760) | 14,021) | 13,841) | 13,042) | 14,350) | 14,530) | 15,489) | 13,365) | 12,392) | 12,647) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 1.58 | 1.70 | 1.82 | 1.78 | 1.67 | 1.60 | 1.68 | 1.60 | 1.64 | 1.74 | 1.64 | 1.68 | 1.63 | 1.86 | 2.01 | 1.85 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | 1.54 | 1.56 | 1.44 | 1.43 | 1.45 | 1.50 | 1.49 | 1.37 | 1.44 | 1.41 | 1.44 | 1.43 | 1.40 | 1.35 | 1.36 | 1.36 | |||||
| Intuitive Surgical Inc. | 4.87 | 4.73 | 5.17 | 4.98 | 4.07 | 4.30 | 5.15 | 5.55 | 4.76 | 5.31 | 5.22 | 5.26 | 4.40 | 5.10 | 5.36 | 5.22 | |||||
| Medtronic PLC | 1.85 | 1.90 | 1.84 | 2.13 | 2.03 | 2.30 | 2.29 | 2.42 | 2.39 | 1.76 | 1.76 | 1.58 | 1.86 | 2.61 | 2.91 | 2.89 | |||||
| UnitedHealth Group Inc. | 0.79 | 0.82 | 0.85 | 0.85 | 0.83 | 0.91 | 0.88 | 0.85 | 0.79 | 0.80 | 0.80 | 0.81 | 0.77 | 0.82 | 0.77 | 0.78 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 25,996 ÷ 16,496 = 1.58
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the observed period, generally remaining above 1.60, indicating a consistent ability to cover short-term liabilities with short-term assets. However, a subtle downward trend is discernible towards the end of the period.
- Overall Trend
- The current ratio began at 1.85 and generally decreased over the analyzed timeframe, concluding at 1.58. While remaining above 1.5, the decline warrants monitoring.
- Initial Period (Mar 31, 2022 – Jun 30, 2022)
- The current ratio initially increased from 1.85 to 2.01. This suggests an improvement in the company’s short-term liquidity position during this period, potentially due to an increase in current assets relative to current liabilities.
- Mid-Period Fluctuation (Sep 30, 2022 – Dec 31, 2023)
- A period of fluctuation followed, with the ratio decreasing to 1.63 by December 2022, then oscillating between 1.64 and 1.74 over the subsequent four quarters. This indicates a degree of instability in the short-term liquidity position, though it remained within an acceptable range.
- Recent Trend (Mar 31, 2024 – Dec 31, 2025)
- The most recent period demonstrates a continued downward trend. The ratio decreased from 1.68 to 1.58. This decline, while not drastic, suggests a potential weakening in the company’s ability to meet its short-term obligations. The most significant decrease occurred between September 30, 2025 and December 31, 2025.
- Notable Observations
- The lowest point in the observed period was 1.58, recorded at the end of the analysis. The highest point was 2.01, recorded in June 2022. The ratio remained relatively stable between 1.60 and 1.82 for the majority of the period, before the recent decline.
Continued monitoring of the current ratio is recommended to assess whether the recent downward trend is temporary or indicative of a more significant shift in the company’s liquidity position.
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Quick Ratio
Abbott Laboratories, quick ratio calculation (quarterly data)
| Dec 31, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 8,522) | 7,511) | 6,951) | 6,532) | 7,616) | 7,558) | 6,987) | 6,284) | 6,896) | 6,709) | 7,835) | 9,161) | 9,882) | 9,594) | 8,937) | 7,675) | |||||
| Short-term investments | 417) | 222) | 331) | 312) | 351) | 230) | 232) | 367) | 383) | 338) | 320) | 371) | 288) | 313) | 353) | 483) | |||||
| Trade receivables, less allowances | 7,929) | 8,138) | 7,972) | 7,327) | 6,925) | 7,051) | 6,854) | 6,605) | 6,565) | 6,499) | 6,172) | 6,020) | 6,218) | 6,408) | 7,199) | 7,179) | |||||
| Total quick assets | 16,868) | 15,871) | 15,254) | 14,171) | 14,892) | 14,839) | 14,073) | 13,256) | 13,844) | 13,546) | 14,327) | 15,552) | 16,388) | 16,315) | 16,489) | 15,337) | |||||
| Current liabilities | 16,496) | 14,582) | 13,439) | 13,004) | 14,157) | 14,902) | 13,760) | 14,021) | 13,841) | 13,042) | 14,350) | 14,530) | 15,489) | 13,365) | 12,392) | 12,647) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 1.02 | 1.09 | 1.14 | 1.09 | 1.05 | 1.00 | 1.02 | 0.95 | 1.00 | 1.04 | 1.00 | 1.07 | 1.06 | 1.22 | 1.33 | 1.21 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | 1.41 | 1.43 | 1.32 | 1.31 | 1.32 | 1.34 | 1.32 | 1.23 | 1.30 | 1.29 | 1.32 | 1.31 | 1.27 | 1.21 | 1.22 | 1.23 | |||||
| Intuitive Surgical Inc. | 3.72 | 3.42 | 3.90 | 3.73 | 3.00 | 3.21 | 3.94 | 4.31 | 3.83 | 4.44 | 4.36 | 4.30 | 3.56 | 4.19 | 4.49 | 4.40 | |||||
| Medtronic PLC | 1.20 | 1.19 | 1.17 | 1.35 | 1.31 | 1.46 | 1.42 | 1.51 | 1.54 | 1.18 | 1.18 | 1.01 | 1.30 | 1.87 | 2.07 | 2.06 | |||||
| UnitedHealth Group Inc. | 0.70 | 0.74 | 0.76 | 0.77 | 0.75 | 0.83 | 0.81 | 0.79 | 0.73 | 0.75 | 0.74 | 0.75 | 0.70 | 0.77 | 0.71 | 0.72 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 16,868 ÷ 16,496 = 1.02
2 Click competitor name to see calculations.
The quick ratio exhibited fluctuations over the observed period, generally trending downwards before stabilizing and showing a slight increase towards the end of the analyzed timeframe. Initial values indicated a comfortable liquidity position, which subsequently experienced some compression before a modest recovery.
- Overall Trend
- From March 31, 2022, to December 31, 2022, the quick ratio decreased from 1.21 to 1.06. This suggests a diminishing ability to meet short-term obligations with highly liquid assets. A subsequent period of relative stability and slight improvement followed, with the ratio hovering around 1.00 to 1.09 through March 31, 2024. The most recent quarters show a further increase, reaching 1.02 by December 31, 2025.
- Peak and Trough
- The highest recorded quick ratio was 1.33, observed on June 30, 2022. The lowest point was 1.00, occurring on both December 31, 2022, and September 30, 2023. This indicates a contraction in the company’s ability to cover current liabilities with quick assets during these periods.
- Recent Performance
- The quick ratio demonstrated a positive trend in the latter part of the period. From September 30, 2024 (1.00) to December 31, 2025 (1.02), the ratio increased, suggesting improved short-term liquidity. This improvement coincides with an increase in total quick assets and a relatively controlled growth in current liabilities.
- Asset and Liability Relationship
- Total quick assets decreased from US$15,337 million in March 2022 to US$16,868 million in December 2025, with fluctuations throughout the period. Current liabilities also exhibited variability, rising from US$12,647 million in March 2022 to US$16,496 million in December 2025. The interplay between these two components significantly influenced the quick ratio’s movements.
In summary, while the quick ratio experienced a period of decline, it has shown signs of stabilization and modest improvement in recent quarters. Continued monitoring of both quick assets and current liabilities is recommended to maintain a healthy liquidity position.
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Cash Ratio
Abbott Laboratories, cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 8,522) | 7,511) | 6,951) | 6,532) | 7,616) | 7,558) | 6,987) | 6,284) | 6,896) | 6,709) | 7,835) | 9,161) | 9,882) | 9,594) | 8,937) | 7,675) | |||||
| Short-term investments | 417) | 222) | 331) | 312) | 351) | 230) | 232) | 367) | 383) | 338) | 320) | 371) | 288) | 313) | 353) | 483) | |||||
| Total cash assets | 8,939) | 7,733) | 7,282) | 6,844) | 7,967) | 7,788) | 7,219) | 6,651) | 7,279) | 7,047) | 8,155) | 9,532) | 10,170) | 9,907) | 9,290) | 8,158) | |||||
| Current liabilities | 16,496) | 14,582) | 13,439) | 13,004) | 14,157) | 14,902) | 13,760) | 14,021) | 13,841) | 13,042) | 14,350) | 14,530) | 15,489) | 13,365) | 12,392) | 12,647) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.54 | 0.53 | 0.54 | 0.53 | 0.56 | 0.52 | 0.52 | 0.47 | 0.53 | 0.54 | 0.57 | 0.66 | 0.66 | 0.74 | 0.75 | 0.65 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Elevance Health Inc. | 0.88 | 0.89 | 0.79 | 0.79 | 0.85 | 0.90 | 0.86 | 0.82 | 0.87 | 0.90 | 0.92 | 0.91 | 0.86 | 0.87 | 0.86 | 0.86 | |||||
| Intuitive Surgical Inc. | 2.96 | 2.72 | 3.15 | 2.93 | 2.30 | 2.52 | 3.20 | 3.49 | 3.15 | 3.86 | 3.77 | 3.59 | 2.90 | 3.50 | 3.78 | 3.58 | |||||
| Medtronic PLC | 0.70 | 0.67 | 0.66 | 0.76 | 0.74 | 0.85 | 0.80 | 0.87 | 0.88 | 0.77 | 0.79 | 0.63 | 0.85 | 1.26 | 1.37 | 1.36 | |||||
| UnitedHealth Group Inc. | 0.24 | 0.26 | 0.29 | 0.30 | 0.28 | 0.37 | 0.33 | 0.35 | 0.34 | 0.42 | 0.44 | 0.43 | 0.36 | 0.46 | 0.36 | 0.37 | |||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,939 ÷ 16,496 = 0.54
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates a generally decreasing trend, with some quarterly fluctuations. Initially, the ratio exhibited relative strength before declining to its lowest point and showing limited recovery towards the end of the observed timeframe.
- Overall Trend
- The cash ratio began at 0.65 in March 2022 and generally decreased over the subsequent ten quarters, reaching a low of 0.47 in March 2024. A slight upward trend is then observed, culminating in a ratio of 0.54 in December 2025. This suggests a diminishing ability to cover immediate liabilities with only cash and cash equivalents, followed by a modest stabilization.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The cash ratio fluctuated between 0.65 and 0.75 during this period, indicating a reasonably healthy short-term liquidity position. A peak of 0.75 was recorded in June 2022, followed by a decline to 0.66 by the end of the year. This suggests some variability in the company’s immediate cash coverage of liabilities.
- Declining Phase (Mar 31, 2023 – Mar 31, 2024)
- A consistent downward trend is evident from March 2023 to March 2024. The ratio decreased from 0.66 to 0.47, representing a significant reduction in the proportion of current liabilities covered by cash. This decline could indicate increased reliance on other liquid assets or a rise in short-term obligations.
- Stabilization and Slight Recovery (Jun 30, 2024 – Dec 31, 2025)
- From June 2024 onwards, the cash ratio showed signs of stabilization, oscillating between 0.52 and 0.56 for several quarters. The ratio concluded the period at 0.54 in December 2025, indicating a limited recovery from the previous decline. While not returning to earlier levels, this suggests a potential bottoming out of the liquidity position.
- Supporting Financial Items
- Total cash assets decreased from US$8,158 million in March 2022 to US$6,651 million in March 2024, before increasing to US$8,939 million by December 2025. Current liabilities generally increased over the period, from US$12,647 million in March 2022 to US$16,496 million in December 2025. The combined effect of decreasing cash assets and increasing current liabilities contributed to the observed decline in the cash ratio.
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