Analysis of Liquidity Ratios
Quarterly Data

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Liquidity Ratios (Summary)
Current Ratio
Quick Ratio
Cash Ratio

Liquidity Ratios (Summary)

Abbott Laboratories, liquidity ratios (quarterly data)

	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015
Current ratio	1.57	1.43	1.44	1.54	1.68	1.58	1.62	1.42	1.58	1.66	2.26	2.69	2.94	2.91	4.02	1.56	1.50	1.48	1.54	1.82	2.30	2.17
Quick ratio	0.93	0.83	0.88	0.93	0.98	0.94	1.03	1.00	0.94	1.04	1.67	2.02	2.13	2.01	3.31	0.94	0.92	0.88	1.04	1.10	1.60	1.45
Cash ratio	0.46	0.34	0.38	0.41	0.37	0.36	0.45	0.59	0.36	0.45	1.08	1.41	1.45	1.33	2.82	0.54	0.51	0.47	0.67	0.70	1.22	1.07

Liquidity ratio	Description	The company
Current ratio	A liquidity ratio calculated as current assets divided by current liabilities.	Abbott Laboratories’s current ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.
Quick ratio	A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.	Abbott Laboratories’s quick ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.
Cash ratio	A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.	Abbott Laboratories’s cash ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Current Ratio

Abbott Laboratories, current ratio calculation (quarterly data)

	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015
Selected Financial Data (US$ in millions)
Current assets	17,221	15,498	15,667	16,119	15,195	14,409	14,632	18,196	14,122	14,964	20,147	21,377	19,983	19,329	26,776	12,978	12,988	12,406	14,155	15,894	21,131	19,985
Current liabilities	10,959	10,808	10,863	10,491	9,062	9,113	9,012	12,776	8,951	9,010	8,912	7,935	6,803	6,646	6,660	8,321	8,673	8,393	9,186	8,755	9,185	9,206
Liquidity Ratio
Current ratio¹	1.57	1.43	1.44	1.54	1.68	1.58	1.62	1.42	1.58	1.66	2.26	2.69	2.94	2.91	4.02	1.56	1.50	1.48	1.54	1.82	2.30	2.17
Benchmarks
Current Ratio, Competitors²
AbbVie Inc.	0.86	3.14	3.18	1.15	0.89	1.04	0.98	1.20	0.80	1.20	1.28	1.45	1.38	1.76	1.65	1.79	1.81	1.56	1.50	2.03	1.50	1.39
Amgen Inc.	2.18	1.59	1.44	2.89	2.89	2.77	2.79	3.08	3.39	3.88	5.49	6.07	6.20	4.41	4.11	4.35	3.97	4.95	4.44	5.42	5.48	5.53
Biogen Inc.	2.46	1.73	1.72	1.91	2.46	2.84	2.32	2.75	2.36	3.23	2.34	2.19	2.10	2.29	2.55	3.24	2.96	2.59	2.60	3.52	2.20	2.70
Bristol-Myers Squibb Co.	1.47	1.66	1.60	3.83	3.88	1.93	1.61	1.53	1.40	1.52	1.55	1.59	1.59	1.60	1.55	1.47	1.56	1.48	1.30	1.81	1.76	1.94
Eli Lilly & Co.	1.22	1.11	1.16	1.17	1.13	1.12	1.73	1.91	1.40	1.41	1.32	1.38	1.39	1.24	1.37	1.62	1.54	1.60	1.53	1.51	1.50	1.41
Gilead Sciences Inc.	2.33	3.04	3.10	2.96	3.76	3.62	3.38	3.45	3.00	2.84	2.74	3.68	3.37	2.59	2.22	1.93	1.76	1.77	2.50	2.77	2.03	2.70
Illumina Inc.	3.76	4.10	6.69	6.82	6.79	3.66	2.49	2.46	2.74	2.71	3.99	4.22	3.88	3.49	3.29	3.62	3.69	4.31	3.43	3.79	3.09	2.90
Johnson & Johnson	1.25	1.31	1.26	1.26	1.33	1.44	1.47	1.72	1.65	1.58	1.41	1.32	1.34	2.52	2.47	2.73	3.08	2.83	2.17	2.51	2.49	2.44
Merck & Co. Inc.	1.32	1.11	1.24	1.26	1.21	1.37	1.17	1.44	1.33	1.42	1.33	1.43	1.50	1.59	1.78	1.89	1.87	1.64	1.55	1.62	1.62	1.61
Pfizer Inc.	1.42	1.03	0.88	0.90	1.47	1.54	1.57	1.43	1.16	1.27	1.35	1.43	1.34	1.44	1.25	1.11	1.37	1.44	1.49	1.62	2.14	2.45
Regeneron Pharmaceuticals Inc.	2.12	4.21	3.67	4.03	3.88	4.58	4.47	4.04	3.62	3.59	3.82	3.63	3.75	2.80	2.56	3.64	3.37	3.41	3.59	3.64	3.80	4.31
Vertex Pharmaceuticals Inc.	3.72	3.54	3.61	3.44	3.74	3.78	3.43	3.71	3.67	3.68	3.28	3.28	3.49	3.82	2.31	2.08	2.33	2.54	2.78	3.63	3.46	4.49
Zoetis Inc.	3.47	2.77	2.63	4.39	4.17	4.05	3.60	4.06	4.38	4.27	3.85	2.80	2.01	1.96	3.03	3.24	3.20	2.84	2.15	2.08	2.11	2.27

¹ Q2 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 17,221 ÷ 10,959 = 1.57

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.	Abbott Laboratories’s current ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Quick Ratio

Abbott Laboratories, quick ratio calculation (quarterly data)

	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents	4,763	3,377	3,860	4,091	3,137	3,022	3,844	7,369	3,065	3,857	9,407	11,012	9,675	8,706	18,620	2,500	2,578	3,334	5,001	3,132	4,048	3,226
Short-term investments	274	291	280	244	239	239	242	181	199	185	203	187	160	154	155	2,007	1,860	623	1,124	3,007	7,129	6,623
Trade receivables, less allowances	5,140	5,292	5,425	5,450	5,548	5,345	5,182	5,271	5,192	5,356	5,249	4,800	4,633	4,510	3,248	3,320	3,567	3,430	3,418	3,460	3,553	3,481
Total quick assets	10,177	8,960	9,565	9,785	8,924	8,606	9,268	12,821	8,456	9,398	14,859	15,999	14,468	13,370	22,023	7,827	8,005	7,387	9,543	9,599	14,730	13,330

Current liabilities	10,959	10,808	10,863	10,491	9,062	9,113	9,012	12,776	8,951	9,010	8,912	7,935	6,803	6,646	6,660	8,321	8,673	8,393	9,186	8,755	9,185	9,206
Liquidity Ratio
Quick ratio¹	0.93	0.83	0.88	0.93	0.98	0.94	1.03	1.00	0.94	1.04	1.67	2.02	2.13	2.01	3.31	0.94	0.92	0.88	1.04	1.10	1.60	1.45
Benchmarks
Quick Ratio, Competitors²
AbbVie Inc.	0.58	2.88	2.91	0.92	0.64	0.78	0.78	0.95	0.55	0.90	0.89	1.11	0.98	1.24	1.14	1.42	1.41	1.25	1.21	1.57	1.12	1.10
Amgen Inc.	1.60	1.10	1.01	2.28	2.41	2.37	2.44	2.68	2.94	3.42	4.98	5.46	5.47	3.96	3.68	3.90	3.52	4.44	3.97	4.75	4.76	4.68
Biogen Inc.	2.00	1.39	1.43	1.57	1.70	2.07	1.83	2.19	1.79	2.67	1.78	1.62	1.49	1.57	1.94	2.44	2.16	1.91	1.93	2.84	1.57	1.98
Bristol-Myers Squibb Co.	1.26	1.38	1.26	3.63	3.61	1.64	1.39	1.31	1.18	1.29	1.37	1.38	1.36	1.37	1.35	1.24	1.30	1.22	1.07	1.30	1.23	1.44
Eli Lilly & Co.	0.68	0.64	0.68	0.66	0.67	0.65	1.20	1.36	0.96	0.87	0.91	0.94	0.92	0.78	0.98	1.06	1.00	0.98	1.04	1.01	1.01	0.95
Gilead Sciences Inc.	2.09	2.78	2.86	2.74	3.41	3.32	3.15	3.16	2.70	2.60	2.52	3.39	3.01	2.19	1.78	1.57	1.39	1.33	2.07	2.33	1.56	2.17
Illumina Inc.	3.28	3.61	6.00	5.99	5.95	3.28	2.23	2.20	2.39	2.35	3.43	3.65	3.32	2.98	2.75	3.05	3.09	3.63	2.90	3.17	2.59	2.42
Johnson & Johnson	0.92	0.98	0.94	0.93	0.95	1.01	1.08	1.22	1.17	1.08	1.04	0.92	0.91	2.06	2.04	2.25	2.54	2.32	1.77	1.93	1.87	1.80
Merck & Co. Inc.	0.84	0.66	0.78	0.80	0.75	0.88	0.72	0.95	0.82	0.86	0.83	0.97	1.03	1.13	1.24	1.31	1.26	1.13	1.04	1.05	1.02	1.09
Pfizer Inc.	0.98	0.60	0.50	0.50	0.71	0.72	0.84	0.94	0.72	0.76	0.93	0.95	0.88	0.94	0.84	0.70	0.94	0.99	1.07	1.08	1.62	1.81
Regeneron Pharmaceuticals Inc.	1.61	3.38	2.81	3.14	2.99	3.66	3.50	3.10	2.80	2.82	2.98	2.94	3.02	2.34	2.13	3.18	2.94	2.95	3.10	3.18	3.32	3.88
Vertex Pharmaceuticals Inc.	3.47	3.27	3.33	3.20	3.51	3.54	3.19	3.46	3.41	3.39	2.94	2.92	3.06	3.30	2.06	1.81	2.02	2.19	2.41	3.12	2.97	4.17
Zoetis Inc.	2.39	1.69	1.67	2.72	2.58	2.55	2.24	2.31	2.62	2.60	2.34	1.71	0.94	0.92	1.47	1.51	1.49	1.36	1.17	0.98	0.98	1.07

¹ Q2 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,177 ÷ 10,959 = 0.93

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.	Abbott Laboratories’s quick ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Cash Ratio

Abbott Laboratories, cash ratio calculation (quarterly data)

	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019	Dec 31, 2018	Sep 30, 2018	Jun 30, 2018	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents	4,763	3,377	3,860	4,091	3,137	3,022	3,844	7,369	3,065	3,857	9,407	11,012	9,675	8,706	18,620	2,500	2,578	3,334	5,001	3,132	4,048	3,226
Short-term investments	274	291	280	244	239	239	242	181	199	185	203	187	160	154	155	2,007	1,860	623	1,124	3,007	7,129	6,623
Total cash assets	5,037	3,668	4,140	4,335	3,376	3,261	4,086	7,550	3,264	4,042	9,610	11,199	9,835	8,860	18,775	4,507	4,438	3,957	6,125	6,139	11,177	9,849

Current liabilities	10,959	10,808	10,863	10,491	9,062	9,113	9,012	12,776	8,951	9,010	8,912	7,935	6,803	6,646	6,660	8,321	8,673	8,393	9,186	8,755	9,185	9,206
Liquidity Ratio
Cash ratio¹	0.46	0.34	0.38	0.41	0.37	0.36	0.45	0.59	0.36	0.45	1.08	1.41	1.45	1.33	2.82	0.54	0.51	0.47	0.67	0.70	1.22	1.07
Benchmarks
Cash Ratio, Competitors²
AbbVie Inc.	0.25	2.50	2.56	0.61	0.32	0.38	0.47	0.57	0.22	0.56	0.59	0.73	0.59	0.71	0.66	0.87	0.86	0.81	0.77	1.05	0.74	0.72
Amgen Inc.	1.09	0.68	0.69	1.94	2.05	2.07	2.17	2.41	2.62	3.07	4.62	5.05	5.02	3.65	3.40	3.60	3.23	4.08	3.62	4.34	4.35	4.28
Biogen Inc.	1.26	0.83	0.92	1.00	0.92	1.24	1.07	1.39	1.02	1.88	1.10	1.02	0.86	0.96	1.43	1.73	1.51	1.29	1.33	2.22	0.93	1.11
Bristol-Myers Squibb Co.	0.92	0.95	0.84	3.10	3.02	0.99	0.83	0.70	0.62	0.70	0.71	0.75	0.72	0.72	0.72	0.62	0.59	0.57	0.53	0.76	0.74	0.99
Eli Lilly & Co.	0.20	0.14	0.21	0.15	0.20	0.19	0.68	0.83	0.53	0.41	0.55	0.55	0.48	0.34	0.55	0.51	0.47	0.41	0.54	0.52	0.51	0.50
Gilead Sciences Inc.	1.79	2.34	2.50	2.39	3.03	2.97	2.84	2.81	2.38	2.25	2.19	2.96	2.48	1.70	1.29	1.11	0.84	0.76	1.48	1.68	0.96	1.52
Illumina Inc.	2.93	3.16	5.13	5.11	5.18	2.91	1.95	1.95	2.06	2.01	2.88	3.07	2.78	2.47	2.21	2.44	2.45	2.79	2.27	2.47	2.08	1.92
Johnson & Johnson	0.52	0.54	0.54	0.51	0.49	0.53	0.63	0.71	0.66	0.56	0.60	0.51	0.45	1.57	1.59	1.74	1.98	1.80	1.38	1.48	1.39	1.31
Merck & Co. Inc.	0.50	0.32	0.47	0.39	0.35	0.47	0.40	0.55	0.42	0.43	0.46	0.58	0.64	0.77	0.83	0.84	0.79	0.74	0.70	0.69	0.65	0.76
Pfizer Inc.	0.70	0.31	0.26	0.25	0.40	0.39	0.59	0.59	0.42	0.42	0.66	0.60	0.53	0.59	0.57	0.41	0.65	0.68	0.79	0.74	1.25	1.37
Regeneron Pharmaceuticals Inc.	0.85	1.95	1.53	1.63	1.56	2.14	1.95	1.55	1.26	1.28	1.24	1.21	1.23	1.00	0.84	1.47	1.10	0.92	1.29	1.22	1.00	1.38
Vertex Pharmaceuticals Inc.	3.03	2.72	2.85	2.88	3.14	3.14	2.83	3.08	2.98	2.99	2.59	2.55	2.67	2.88	1.81	1.56	1.72	1.86	2.06	2.68	2.72	3.91
Zoetis Inc.	1.85	1.13	1.07	1.74	1.66	1.66	1.39	1.39	1.61	1.65	1.43	1.13	0.40	0.36	0.65	0.63	0.63	0.58	0.65	0.36	0.35	0.41

¹ Q2 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,037 ÷ 10,959 = 0.46

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.	Abbott Laboratories’s cash ratio deteriorated from Q4 2019 to Q1 2020 but then improved from Q1 2020 to Q2 2020 exceeding Q4 2019 level.

Abbott Laboratories (NYSE:ABT)

Analysis of Liquidity RatiosQuarterly Data

Liquidity Ratios (Summary)

Current Ratio

Quick Ratio

Cash Ratio

Analysis of Liquidity Ratios
Quarterly Data