Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
AmerisourceBergen Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
The analysis of liquidity ratios over the reviewed periods reveals several noteworthy trends and variations. The current ratio, which measures the company's ability to meet its short-term obligations with its short-term assets, generally fluctuates slightly but remains below 1.1 throughout the timeline. Initially, this ratio is around 0.9 at the end of 2016 and shows a gradual increase reaching a peak slightly below 1.1 in the first quarter of 2021, indicating a temporary improvement in liquidity. However, following this peak, a gradual decline is observed, ending near 0.88 by the second quarter of 2023, suggesting a slight weakening in the company’s short-term financial strength.*
The quick ratio, excluding inventories from current assets, follows a similar pattern but with values consistently lower than the current ratio, as expected. Starting at approximately 0.45 at the end of 2016, the quick ratio shows a moderate upward trend until early 2021, achieving a maximum of around 0.63, reflecting a conservative improvement in liquid assets relative to current liabilities. After reaching its highest point, the quick ratio declines and stabilizes around 0.47 by mid-2023, indicating a slight reduction in immediate liquidity relative to short-term liabilities.*
The cash ratio, the most stringent measure of liquidity focusing solely on cash and cash equivalents, presents a more volatile pattern across the periods. The ratio starts very low, near 0.07, with fluctuations between increases and declines up to 2021. There is a notable spike reaching a peak of 0.20 in early 2021, implying a temporary strengthening in cash reserves relative to current liabilities. Subsequently, the cash ratio declines sharply to lows around 0.03 by mid-2023, signaling a considerable reduction in the most liquid resources available.*
- Current Ratio
- Range: Approximately 0.88 to 1.07
- Trend: Gradual increase until Q1 2021, then gradual decline.
- Insight: Short-term liquidity improved modestly but experienced some weakening in recent periods.
- Quick Ratio
- Range: Approximately 0.45 to 0.63
- Trend: Steady increase approaching early 2021, followed by a decline stabilizing near the initial values.
- Insight: Liquid assets relative to current liabilities moderately improved and then decreased, indicating more conservative liquidity management.
- Cash Ratio
- Range: Approximately 0.03 to 0.20
- Trend: Volatile with an overall low level; peak in early 2021 followed by a significant drop.
- Insight: Cash reserves fluctuated substantially, suggesting varying degrees of cash management or operational cash flow impacts.
Current Ratio
AmerisourceBergen Corp., current ratio calculation (quarterly data)
| 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 | 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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Current assets | 40,986,584) | 39,989,641) | 40,708,125) | 39,589,758) | 39,744,526) | 39,409,740) | 39,378,885) | 38,802,609) | 37,259,766) | 35,469,149) | 34,700,221) | 33,055,702) | 29,918,572) | 31,180,650) | 28,954,816) | 28,132,054) | 27,401,778) | 27,622,183) | 27,476,207) | 25,894,372) | 26,404,401) | 26,397,211) | 25,296,432) | 24,303,299) | 23,677,224) | 23,493,921) | 23,078,756) | ||||||||
| Current liabilities | 46,783,211) | 45,071,097) | 44,760,623) | 43,477,955) | 43,154,310) | 42,797,581) | 41,613,605) | 41,358,641) | 39,589,838) | 32,996,446) | 35,044,451) | 33,853,077) | 30,631,571) | 32,111,790) | 30,630,456) | 29,581,294) | 28,788,871) | 29,211,899) | 29,351,737) | 27,869,687) | 28,099,671) | 28,094,404) | 26,740,291) | 26,818,165) | 25,751,076) | 25,531,426) | 25,542,758) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Current ratio1 | 0.88 | 0.89 | 0.91 | 0.91 | 0.92 | 0.92 | 0.95 | 0.94 | 0.94 | 1.07 | 0.99 | 0.98 | 0.98 | 0.97 | 0.95 | 0.95 | 0.95 | 0.95 | 0.94 | 0.93 | 0.94 | 0.94 | 0.95 | 0.91 | 0.92 | 0.92 | 0.90 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Abbott Laboratories | 1.74 | 1.64 | 1.68 | 1.63 | 1.86 | 2.01 | 1.85 | 1.85 | 1.83 | 1.79 | 1.75 | 1.72 | 1.70 | 1.57 | 1.43 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CVS Health Corp. | 0.86 | 0.86 | 0.92 | 0.94 | 0.94 | 0.91 | 0.88 | 0.88 | 0.94 | 0.95 | 0.93 | 0.91 | 0.95 | 0.98 | 0.99 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Elevance Health Inc. | 1.41 | 1.44 | 1.43 | 1.40 | 1.35 | 1.36 | 1.36 | 1.47 | 1.48 | 1.49 | 1.57 | 1.55 | 1.59 | 1.64 | 1.53 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuitive Surgical Inc. | 5.31 | 5.22 | 5.26 | 4.40 | 5.10 | 5.36 | 5.22 | 5.08 | 5.58 | 5.99 | 6.71 | 6.86 | 7.04 | 6.38 | 4.96 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Medtronic PLC | 1.76 | 1.76 | 1.58 | 1.86 | 2.61 | 2.91 | 2.89 | 2.65 | 2.10 | 2.16 | 1.87 | 2.13 | 2.75 | 2.77 | 2.67 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| UnitedHealth Group Inc. | 0.80 | 0.80 | 0.81 | 0.77 | 0.82 | 0.77 | 0.78 | 0.79 | 0.77 | 0.77 | 0.74 | 0.74 | 0.82 | 0.84 | 0.75 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 40,986,584 ÷ 46,783,211 = 0.88
2 Click competitor name to see calculations.
- Current Assets
-
Current assets exhibit a general upward trend over the observed periods, increasing from approximately 23.1 billion US dollars at the end of 2016 to around 40.9 billion US dollars by mid-2023. The growth is relatively steady with minor fluctuations, and there is a notable acceleration in asset accumulation from early 2020 onwards. This suggests an expansion in liquid and short-term assets held during the latter years of the time frame, potentially reflecting increased operational scale or strategic asset management adjustments.
- Current Liabilities
-
Current liabilities follow an increasing trajectory as well, starting at approximately 25.5 billion US dollars at the end of 2016 and rising to about 46.8 billion US dollars by mid-2023. The increase is consistent with the rise in current assets, but the liabilities grow at a somewhat faster pace, especially from early 2021 forward. This pattern implies rising short-term obligations, which may correspond to expanded business activities or increased reliance on short-term financing.
- Current Ratio
-
The current ratio, a measure of short-term liquidity, begins at 0.9 at the end of 2016 and fluctuates modestly around the 0.9 to 1.0 range throughout the period. Notably, the ratio peaks at 1.07 in the first quarter of 2021, indicating a temporary improvement in the coverage of current liabilities by current assets. However, thereafter, the ratio declines gradually, reaching 0.88 by the second quarter of 2023. This decline points to a relative tightening of liquidity, suggesting that the growth in current liabilities outpaces increases in current assets toward the end of the observed period.
- Summary
-
Overall, both current assets and current liabilities steadily increase over the course of the data, reflecting business growth or changes in operational scale. The current ratio remains relatively stable but shows signs of decreasing liquidity in the most recent periods. The temporary peak in the current ratio during early 2021 may indicate a brief period of strengthened short-term financial position, yet the subsequent decline warrants attention to liquidity management moving forward.
Quick Ratio
AmerisourceBergen Corp., quick ratio calculation (quarterly data)
| 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 | 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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,389,345) | 1,539,406) | 1,692,205) | 3,388,189) | 3,034,233) | 2,960,759) | 3,168,881) | 2,547,142) | 2,553,217) | 6,641,180) | 4,890,918) | 4,597,746) | 3,420,272) | 3,691,938) | 3,232,604) | 3,374,194) | 2,999,559) | 2,875,750) | 2,540,156) | 2,492,516) | 2,388,928) | 2,091,359) | 3,037,747) | 2,435,115) | 1,311,467) | 2,404,433) | 1,791,134) | ||||||||
| Accounts receivable, less allowances for returns and credit losses | 20,796,648) | 19,491,097) | 18,627,397) | 18,452,675) | 18,624,104) | 18,111,080) | 17,146,056) | 18,167,175) | 17,695,170) | 14,134,326) | 14,886,252) | 13,846,301) | 12,548,399) | 14,210,170) | 12,568,816) | 12,386,879) | 11,989,030) | 12,222,271) | 11,979,382) | 11,314,226) | 11,764,614) | 11,265,014) | 10,127,783) | 10,303,324) | 10,553,258) | 9,583,520) | 9,696,200) | ||||||||
| Total quick assets | 22,185,993) | 21,030,503) | 20,319,602) | 21,840,864) | 21,658,337) | 21,071,839) | 20,314,937) | 20,714,317) | 20,248,387) | 20,775,506) | 19,777,170) | 18,444,047) | 15,968,671) | 17,902,108) | 15,801,420) | 15,761,073) | 14,988,589) | 15,098,021) | 14,519,538) | 13,806,742) | 14,153,542) | 13,356,373) | 13,165,530) | 12,738,439) | 11,864,725) | 11,987,953) | 11,487,334) | ||||||||
| Current liabilities | 46,783,211) | 45,071,097) | 44,760,623) | 43,477,955) | 43,154,310) | 42,797,581) | 41,613,605) | 41,358,641) | 39,589,838) | 32,996,446) | 35,044,451) | 33,853,077) | 30,631,571) | 32,111,790) | 30,630,456) | 29,581,294) | 28,788,871) | 29,211,899) | 29,351,737) | 27,869,687) | 28,099,671) | 28,094,404) | 26,740,291) | 26,818,165) | 25,751,076) | 25,531,426) | 25,542,758) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Quick ratio1 | 0.47 | 0.47 | 0.45 | 0.50 | 0.50 | 0.49 | 0.49 | 0.50 | 0.51 | 0.63 | 0.56 | 0.54 | 0.52 | 0.56 | 0.52 | 0.53 | 0.52 | 0.52 | 0.49 | 0.50 | 0.50 | 0.48 | 0.49 | 0.47 | 0.46 | 0.47 | 0.45 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Abbott Laboratories | 1.04 | 1.00 | 1.07 | 1.06 | 1.22 | 1.33 | 1.21 | 1.28 | 1.25 | 1.19 | 1.16 | 1.14 | 1.01 | 0.93 | 0.83 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CVS Health Corp. | 0.60 | 0.59 | 0.61 | 0.62 | 0.64 | 0.62 | 0.54 | 0.55 | 0.59 | 0.58 | 0.54 | 0.53 | 0.58 | 0.63 | 0.60 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Elevance Health Inc. | 1.29 | 1.32 | 1.31 | 1.27 | 1.21 | 1.22 | 1.23 | 1.33 | 1.33 | 1.35 | 1.43 | 1.42 | 1.45 | 1.49 | 1.37 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuitive Surgical Inc. | 4.44 | 4.36 | 4.30 | 3.56 | 4.19 | 4.49 | 4.40 | 4.34 | 4.66 | 5.12 | 5.76 | 5.96 | 5.93 | 5.40 | 4.00 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Medtronic PLC | 1.18 | 1.18 | 1.01 | 1.30 | 1.87 | 2.07 | 2.06 | 1.91 | 1.58 | 1.63 | 1.37 | 1.50 | 2.05 | 2.02 | 1.95 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| UnitedHealth Group Inc. | 0.75 | 0.74 | 0.75 | 0.70 | 0.77 | 0.71 | 0.72 | 0.72 | 0.71 | 0.71 | 0.68 | 0.68 | 0.75 | 0.76 | 0.66 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 22,185,993 ÷ 46,783,211 = 0.47
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets showed an initial increasing trend from December 2016 through March 2018, rising from approximately 11.5 billion to over 14.1 billion US dollars. After a slight dip in September 2018, the total quick assets experienced steady growth, with notable jumps in the first quarter of 2020 and continuing until the last recorded quarter in June 2023. The value peaked most recently above 22.1 billion US dollars, indicating a considerable strengthening of liquid assets over the period.
- Current Liabilities
- Current liabilities consistently increased throughout the timeframe, moving from around 25.5 billion US dollars at the end of 2016 to over 46.7 billion US dollars by mid-2023. The growth exhibited some acceleration after 2019, with sharp rises in liabilities especially visible from 2020 onwards, suggesting an expansion in short-term obligations or operational scale. This increase in liabilities appears more pronounced relative to the increase in quick assets, indicating a rising leverage or liquidity pressure.
- Quick Ratio
- The quick ratio, a key liquidity metric, generally fluctuated between 0.45 and 0.56 from 2016 through 2020, indicating a relatively stable but moderate level of short-term financial liquidity during these years. A notable peak occurred in the first quarter of 2021 at 0.63, reflecting an improved liquidity position temporarily. However, following this peak, the quick ratio declined again to the mid-0.40s level by early 2023. This pattern suggests that despite growth in quick assets, current liabilities increased at a faster pace, leading to an overall pressure on liquidity ratios near the end of the period.
- Overall Financial Insights
- The data illustrates a scenario of growing asset liquidity accompanied by a comparably faster growth in current liabilities. While the company bolstered its quick assets significantly, the continuing rise in liabilities, especially post-2019, has subdued improvements in short-term liquidity as reflected in the quick ratio. These trends highlight increasing financial obligations which may necessitate careful monitoring of liquidity and working capital management to ensure sustained financial health.
Cash Ratio
AmerisourceBergen Corp., cash ratio calculation (quarterly data)
| 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 | 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 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 1,389,345) | 1,539,406) | 1,692,205) | 3,388,189) | 3,034,233) | 2,960,759) | 3,168,881) | 2,547,142) | 2,553,217) | 6,641,180) | 4,890,918) | 4,597,746) | 3,420,272) | 3,691,938) | 3,232,604) | 3,374,194) | 2,999,559) | 2,875,750) | 2,540,156) | 2,492,516) | 2,388,928) | 2,091,359) | 3,037,747) | 2,435,115) | 1,311,467) | 2,404,433) | 1,791,134) | ||||||||
| Total cash assets | 1,389,345) | 1,539,406) | 1,692,205) | 3,388,189) | 3,034,233) | 2,960,759) | 3,168,881) | 2,547,142) | 2,553,217) | 6,641,180) | 4,890,918) | 4,597,746) | 3,420,272) | 3,691,938) | 3,232,604) | 3,374,194) | 2,999,559) | 2,875,750) | 2,540,156) | 2,492,516) | 2,388,928) | 2,091,359) | 3,037,747) | 2,435,115) | 1,311,467) | 2,404,433) | 1,791,134) | ||||||||
| Current liabilities | 46,783,211) | 45,071,097) | 44,760,623) | 43,477,955) | 43,154,310) | 42,797,581) | 41,613,605) | 41,358,641) | 39,589,838) | 32,996,446) | 35,044,451) | 33,853,077) | 30,631,571) | 32,111,790) | 30,630,456) | 29,581,294) | 28,788,871) | 29,211,899) | 29,351,737) | 27,869,687) | 28,099,671) | 28,094,404) | 26,740,291) | 26,818,165) | 25,751,076) | 25,531,426) | 25,542,758) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||||
| Cash ratio1 | 0.03 | 0.03 | 0.04 | 0.08 | 0.07 | 0.07 | 0.08 | 0.06 | 0.06 | 0.20 | 0.14 | 0.14 | 0.11 | 0.11 | 0.11 | 0.11 | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.07 | 0.11 | 0.09 | 0.05 | 0.09 | 0.07 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||||
| Abbott Laboratories | 0.54 | 0.57 | 0.66 | 0.66 | 0.74 | 0.75 | 0.65 | 0.78 | 0.75 | 0.71 | 0.67 | 0.60 | 0.46 | 0.46 | 0.34 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| CVS Health Corp. | 0.20 | 0.21 | 0.24 | 0.23 | 0.28 | 0.22 | 0.16 | 0.18 | 0.20 | 0.17 | 0.15 | 0.18 | 0.19 | 0.27 | 0.21 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Elevance Health Inc. | 0.90 | 0.92 | 0.91 | 0.86 | 0.87 | 0.86 | 0.86 | 0.95 | 0.97 | 0.97 | 1.08 | 1.04 | 1.04 | 1.10 | 0.95 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Intuitive Surgical Inc. | 3.86 | 3.77 | 3.59 | 2.90 | 3.50 | 3.78 | 3.58 | 3.66 | 3.98 | 4.42 | 5.04 | 5.30 | 5.27 | 4.85 | 3.44 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Medtronic PLC | 0.77 | 0.79 | 0.63 | 0.85 | 1.26 | 1.37 | 1.36 | 1.27 | 1.17 | 1.18 | 0.99 | 1.06 | 1.33 | 1.27 | 1.25 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| UnitedHealth Group Inc. | 0.42 | 0.44 | 0.43 | 0.36 | 0.46 | 0.36 | 0.37 | 0.36 | 0.35 | 0.35 | 0.33 | 0.33 | 0.37 | 0.42 | 0.35 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-K (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31).
1 Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,389,345 ÷ 46,783,211 = 0.03
2 Click competitor name to see calculations.
- Total Cash Assets
-
Total cash assets show considerable fluctuations throughout the periods. Initially, there was a notable increase from approximately 1.79 billion USD at the end of 2016 to about 3.04 billion USD by the end of 2017. Subsequently, values remained somewhat stable in the vicinity of 2.1 to 2.5 billion USD in early 2018 before rising steadily to a peak of nearly 6.64 billion USD in March 2021. After this peak, total cash assets experienced a sharp decline, dropping to around 1.39 billion USD by June 2023.
- Current Liabilities
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Current liabilities depicted a general upward trend over the observed timeframe. They started at approximately 25.54 billion USD at the end of 2016 and increased consistently with some minor fluctuations, reaching a high of about 46.78 billion USD by June 2023. Notable increases occurred particularly after 2018, with a substantial surge evident from 32.99 billion USD in March 2021 to levels exceeding 44 billion USD in the latest quarters.
- Cash Ratio
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The cash ratio, defined as total cash assets divided by current liabilities, displayed variability corresponding partly to changes in cash assets and liabilities. Early values ranged from 0.05 to 0.11 between late 2016 and early 2018, followed by a gradual increase peaking at 0.20 in mid-2021. Following this peak, the ratio declined significantly and stabilized at lower levels around 0.03 to 0.04 by mid-2023. The decline reflects the reduction in cash assets coupled with higher current liabilities over recent periods.
- Overall Analysis
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The financial data indicate that although the company accumulated substantial cash reserves up until early 2021, these reserves were largely depleted in subsequent quarters despite growing current liabilities. The increasing current liabilities without a commensurate increase in cash assets suggest potential liquidity management challenges. The cash ratio trend reinforces this view, as the ratio dropped sharply, signaling a reduced ability to cover short-term obligations solely with cash. Moving forward, attention should be given to maintaining an adequate cash buffer relative to liabilities to ensure liquidity stability.