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).
The analysis of liquidity ratios over the reported quarters exhibits notable trends in the company's short-term financial health and ability to meet its obligations.
- Current Ratio
- The current ratio shows an overall increasing trend from 1.43 in the first quarter of 2020 to a peak of 2.01 in the second quarter of 2022, indicating improved liquidity and a stronger cushion of current assets over current liabilities during this period. Following this peak, the ratio declines somewhat, fluctuating between 1.6 and 1.78 in the quarters leading up to the first quarter of 2025. Despite the decrease from the peak, the current ratio remains above 1.5 in most recent periods, suggesting sustained adequate liquidity.
- Quick Ratio
- The quick ratio, which excludes inventories from current assets, mirrors the current ratio's upward movement initially, increasing from 0.83 in early 2020 to a high of 1.33 by mid-2022. This rise reflects enhanced liquidity in more readily convertible assets. Post mid-2022, the quick ratio exhibits a downward trend with some volatility, ranging roughly between 1.0 and 1.09 by early 2025, suggesting a moderate reduction but steady maintenance of liquid assets relative to current liabilities.
- Cash Ratio
- The cash ratio demonstrates a less pronounced but similar pattern. Starting at 0.34 in the first quarter of 2020, the ratio grows to 0.78 by late 2021, highlighting increased cash and cash-equivalents relative to current liabilities. However, after reaching 0.78, the ratio declines to a range around 0.47 to 0.56 through 2024 and early 2025, indicating a cautious reduction in immediate cash reserves, though maintaining a healthy buffer.
Overall, the liquidity measures reflect a general strengthening through 2021 and mid-2022, followed by a softening phase where all three ratios declined but remained at levels indicative of solid short-term financial stability. The pattern suggests the company focused on building liquidity buffers in the earlier period and later managed liquid resources with a view toward optimization without compromising solvency.
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 | ||||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||||
UnitedHealth Group 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 data reveals significant fluctuations and trends in the current assets, current liabilities, and current ratio over the analyzed periods.
- Current Assets
- Current assets display a general increasing trend from March 2020 to December 2021, rising from approximately $15.5 billion to about $24.2 billion. This is followed by some volatility; between March 2022 and December 2023, current assets fluctuate around the low $24 billion mark, showing a slight decline initially and then marginal recovery. From March 2024 onward, the values exhibit a modest upward trend again, peaking near $23.8 billion before a slight decrease in March 2025.
- Current Liabilities
- Current liabilities also increase steadily from March 2020, starting at roughly $10.8 billion and reaching around $13.1 billion by December 2021. After this, liabilities exhibit more pronounced volatility. They peak notably in December 2022 at approximately $15.5 billion, followed by a general decreasing trend through the subsequent periods, ending lower at about $13.0 billion in March 2025.
- Current Ratio
- The current ratio initially improves consistently from 1.43 in March 2020 to a peak of 1.85 by December 2021, indicating strengthening liquidity during this period. This improvement coincides with the rising current assets outpacing the growth in current liabilities. However, post-December 2021, the current ratio declines to about 1.63 by December 2022, reflecting a relative increase in liabilities and/or decrease in assets. Subsequently, the ratio fluctuates around the mid-1.6 to 1.7 range, showing intermittent improvements and declines. By March 2025, the current ratio recovers slightly to 1.78, indicating improved liquidity compared to the previous low points but still below the peak observed in late 2021.
In summary, the data suggests a period of robust growth in current assets and liquidity through 2021, followed by a period of increased volatility and some deterioration in the current ratio toward the end of 2022. The subsequent periods show attempts at recovering liquidity, supported by managing liabilities and stabilizing asset levels. The fluctuations in current liabilities seem to be a key driver of changes in the current ratio, especially the notable spike in liabilities at the end of 2022.
Quick Ratio
Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Trade receivables, less allowances | ||||||||||||||||||||||||||||
Total quick assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Quick ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||||
UnitedHealth Group 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 financial data over the given periods reveals several key trends related to liquidity, as represented by total quick assets, current liabilities, and the quick ratio.
- Total Quick Assets
- Total quick assets generally exhibited an upward trend from March 2020 through December 2021, increasing from 8,960 million USD to a peak of 16,736 million USD. However, starting from March 2022, the figure shows a gradual decline with some volatility, decreasing to 13,546 million USD by September 2023, followed by slight fluctuations and a modest recovery closer to 14,171 million USD by March 2025. This suggests an initial strengthening in liquid asset holdings, which then faced some contraction and stabilization in more recent quarters.
- Current Liabilities
- Current liabilities grew steadily from March 2020 at 10,808 million USD, reaching a high of 15,489 million USD by December 2022. After this peak, there is a downward trend through March 2025, where current liabilities decreased to 13,004 million USD. This pattern indicates an initial accumulation of short-term obligations followed by a reduction, possibly reflecting management’s efforts to optimize working capital or reduce short-term debt levels.
- Quick Ratio
- The quick ratio improved markedly from 0.83 in March 2020 to a peak of 1.28 by December 2021, showing a clear enhancement in the company's ability to cover current liabilities with its most liquid assets. After peaking, the ratio declined gradually, reaching values close to or slightly above 1.00 in subsequent quarters, with minor fluctuations around this level and trending slightly upward again toward 1.09 by March 2025. This indicates that liquidity strengthened significantly during the early period, with some reduction and stabilization thereafter, maintaining a generally healthy ability to meet short-term obligations.
In summary, the data demonstrates an overall improvement in liquidity from early 2020 through late 2021, marked by increases in quick assets and quick ratio coupled with rising current liabilities. Following this period, both quick assets and current liabilities exhibit more variable patterns, with liabilities decreasing after a late 2022 peak and liquid assets facing some declines but stabilizing toward the end of the series. The quick ratio’s stability near or above 1.00 in recent quarters suggests sustained short-term financial resilience despite these fluctuations.
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 cash equivalents | ||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||
Total cash assets | ||||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||||
Liquidity Ratio | ||||||||||||||||||||||||||||
Cash ratio1 | ||||||||||||||||||||||||||||
Benchmarks | ||||||||||||||||||||||||||||
Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
CVS Health Corp. | ||||||||||||||||||||||||||||
Elevance Health Inc. | ||||||||||||||||||||||||||||
Intuitive Surgical Inc. | ||||||||||||||||||||||||||||
Medtronic PLC | ||||||||||||||||||||||||||||
UnitedHealth Group 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.
- Total Cash Assets
- The total cash assets exhibited fluctuations throughout the observed periods. Starting at $3,668 million in March 2020, cash reserves increased significantly to a peak of $10,249 million by December 2021. Following this peak, a downward trend was observed, with cash assets generally declining to $6,844 million by March 2025. Notable decreases occurred after December 2021, with intermittent small recoveries, but the overall pattern indicates a reduction in cash holdings in the latter periods.
- Current Liabilities
- Current liabilities demonstrated a generally upward trend from the initial value of $10,808 million in March 2020, reaching a high of $15,489 million in December 2022. After this peak, liabilities decreased somewhat but remained elevated, fluctuating around the $13,000–$14,000 million range through March 2025. The increase in current liabilities over time suggests growing short-term obligations relative to the starting point.
- Cash Ratio
- The cash ratio, which measures liquidity by comparing cash assets to current liabilities, showed an overall increase from 0.34 in March 2020 to a peak of 0.78 in December 2021. This improvement indicates strengthening liquidity during the initial period. However, after this peak, the cash ratio declined gradually, reaching approximately 0.53 by March 2025. Despite the decline, the cash ratio remained above the initial levels, reflecting moderate liquidity but a weakening trend in more recent quarters.
- Summary Insights
- The initial period up to late 2021 was characterized by growth in cash assets and improved liquidity ratios, accompanied by rising but manageable current liabilities. From 2022 onwards, the company’s liquidity position weakened, marked by declining cash balances and a lower cash ratio, while liabilities stayed relatively high. This pattern may suggest increased operational demands or investments, changes in working capital management, or other factors affecting cash flows and liabilities. Continuous monitoring of liquidity metrics is advisable to ensure the company maintains sufficient short-term financial flexibility.