Stock Analysis on Net
Stock Analysis on Net

AmerisourceBergen Corp. (NYSE:ABC)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 2, 2023.

Analysis of Liquidity Ratios

Microsoft Excel

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

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Liquidity Ratios (Summary)

AmerisourceBergen Corp., liquidity ratios

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Current ratio
Quick ratio
Cash ratio

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Current Ratio
The current ratio exhibits a generally stable trend over the analyzed period, fluctuating narrowly between 0.91 and 0.98. It increased gradually from 0.91 in 2017 to a peak of 0.98 in 2020 before declining again to 0.91 in 2022. This indicates a consistent level of short-term liquidity, with the company maintaining almost one dollar of current assets for every dollar of current liabilities throughout the years examined.
Quick Ratio
The quick ratio shows a steady improvement from 0.47 in 2017 to 0.54 in 2020, signaling an enhanced ability to cover short-term obligations with more liquid assets excluding inventory. However, after 2020, the ratio slightly decreased and stabilized around 0.5 in both 2021 and 2022, suggesting a minor reduction in the company's immediate liquidity position compared to the peak but maintaining a relatively consistent level overall.
Cash Ratio
The cash ratio presents more variability than the other liquidity measures. It rose from 0.09 in 2017 to a high of 0.14 in 2020, indicating an increased portion of cash and cash equivalents relative to current liabilities during that period. However, there is a notable decline following 2020, dropping to 0.06 in 2021 before slightly recovering to 0.08 in 2022. This pattern reflects fluctuating cash reserves, with lower cash availability relative to short-term liabilities in the most recent years compared to the peak in 2020.

Current Ratio

AmerisourceBergen Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in thousands)
Current assets
Current liabilities
Liquidity Ratio
Current ratio1
Benchmarks
Current Ratio, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Current Ratio, Sector
Health Care Equipment & Services
Current Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Current Assets
The current assets demonstrate a consistent upward trend over the six-year period. Starting from approximately 24.3 billion USD in 2017, the current assets increased steadily each year, reaching nearly 39.6 billion USD by 2022. This indicates a significant growth in liquid and short-term assets available to the company.
Current Liabilities
Current liabilities also show a continuous rise across the same timeframe. Beginning at around 26.8 billion USD in 2017, liabilities escalated annually, peaking at approximately 43.5 billion USD in 2022. This upward movement suggests increased short-term obligations or debts the company needs to settle within a year.
Current Ratio
The current ratio, calculated as current assets divided by current liabilities, reflected a generally slightly declining trend. It started below parity at 0.91 in 2017, with a moderate improvement to 0.98 in 2020, before decreasing back to 0.91 in 2022. Although there was a minor peak in 2020, the ratio remained under 1.0 throughout all periods, indicating that current liabilities consistently exceed current assets. This situation may imply potential liquidity concerns or tight working capital management.
Overall Analysis
While both current assets and liabilities expanded significantly over the years, liabilities grew at a proportionally higher rate, resulting in a stable yet suboptimal current ratio below 1. This pattern suggests that, despite asset growth, the company's short-term obligations grew faster, which might impact liquidity efficiency. The temporary uptick in the current ratio during 2020 could be attributed to changes in asset or liability management practices during that year. Continuous monitoring is advisable to ensure the ability to meet short-term obligations without liquidity strain.

Quick Ratio

AmerisourceBergen Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Accounts receivable, less allowances for returns and credit losses
Total quick assets
 
Current liabilities
Liquidity Ratio
Quick ratio1
Benchmarks
Quick Ratio, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Quick Ratio, Sector
Health Care Equipment & Services
Quick Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

1 2022 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 consistent upward trend over the six-year period. Starting at approximately 12.7 billion US dollars in 2017, the figure increased each year, reaching about 21.8 billion US dollars by 2022. This represents a substantial growth in liquid assets over time.
Trend in Current Liabilities
Current liabilities also increased steadily from roughly 26.8 billion US dollars in 2017 to around 43.5 billion US dollars in 2022. The rise in liabilities is notably significant, especially from 2020 onward, indicating an increasing level of short-term obligations.
Trend in Quick Ratio
The quick ratio, which measures short-term liquidity by comparing quick assets to current liabilities, displayed slight variation throughout the period. It started at 0.47 in 2017, improved marginally to 0.54 in 2020, but then declined to 0.5 in both 2021 and 2022. Despite growing quick assets, the quick ratio remained below 1, reflecting that current liabilities consistently exceeded liquid assets.
Overall Insights
While rapid growth in quick assets indicates strengthening liquidity resources, the more pronounced increase in current liabilities suggests a rising dependence on short-term funding. Maintaining a quick ratio below 1 implies that the company may face challenges in covering short-term liabilities solely with its most liquid assets. The stability of the quick ratio around 0.5 in recent years points to consistent, though limited, short-term liquidity relative to obligations.

Cash Ratio

AmerisourceBergen Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Total cash assets
 
Current liabilities
Liquidity Ratio
Cash ratio1
Benchmarks
Cash Ratio, Competitors2
Abbott Laboratories
Elevance Health Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.
Cash Ratio, Sector
Health Care Equipment & Services
Cash Ratio, Industry
Health Care

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Total Cash Assets
The total cash assets exhibited a generally upward trend from 2017 through 2020, increasing from approximately 2.44 billion to 4.60 billion US dollars. This notable growth peaked in the fiscal year ending September 30, 2020. However, a significant decline followed in 2021, with cash assets dropping to about 2.55 billion, before partially recovering to approximately 3.39 billion in 2022. This pattern suggests periods of liquidity enhancement up to 2020, a contraction in 2021, and some stabilization thereafter.
Current Liabilities
Current liabilities steadily increased each year across the six-year span, rising from approximately 26.82 billion in 2017 to 43.48 billion in 2022. The data reflect continuous growth, with a particularly sharp increase between 2020 and 2021, where liabilities jumped by roughly 7.5 billion. This upward trend indicates increasing short-term obligations, which could impact liquidity and financial risk if not matched by proportionate growth in assets.
Cash Ratio
The cash ratio, representing the proportion of cash to current liabilities, remained relatively stable and low from 2017 through 2020, fluctuating between 0.09 and 0.14, with a peak of 0.14 in 2020. In 2021, it experienced a sharp decline to 0.06, mirroring the reduction in cash assets alongside heightened liabilities. In 2022, there was a slight recovery to 0.08, but the ratio remains below earlier levels. This decline suggests a reduced ability to cover current liabilities with available cash, indicating increased liquidity risk in the most recent periods.