Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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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).
The analysis of the liquidity ratios over the reviewed periods reveals several discernible trends in the company's short-term financial health.
- Current Ratio
- The current ratio remained relatively stable around 0.94-0.95 from December 2017 through December 2019, indicating consistent coverage of current liabilities by current assets. From early 2020, there was a slight increase, peaking at 1.07 in March 2021, suggesting improved liquidity during that period. However, following this peak, the current ratio showed a gradual decline, reaching 0.88 by June 2023. This downward trend may point to a reduction in the buffer available to cover short-term obligations toward the most recent periods.
- Quick Ratio
- The quick ratio followed a similar pattern but exhibited more variability. Initially hovering near 0.49-0.53 until the end of 2019, it rose to a peak of 0.63 in March 2021, reflecting an increase in more liquid assets relative to current liabilities. After this peak, the ratio declined steadily to reach 0.47 by June 2023. The fluctuations suggest changing levels of liquid assets excluding inventory and support the observation of deteriorating liquidity in the latest periods.
- Cash Ratio
- The cash ratio consistently remained the lowest among the three ratios, generally staying below 0.20 throughout the entire timeframe. A slight upward trend was observed from about 0.07-0.11 in early periods to a peak of 0.20 in March 2021, indicating a temporarily higher proportion of cash and cash equivalents relative to current liabilities. Subsequently, the cash ratio diminished sharply, reaching as low as 0.03 by the latest quarter, signaling a significant decrease in the company’s most liquid assets relative to its current liabilities.
Overall, the liquidity ratios indicate a pattern of steady liquidity maintained through 2017-2019, followed by a marked improvement in early 2021, likely reflecting a strategic buildup of current and liquid assets. However, this improvement was not sustained, with subsequent declines across all ratios into mid-2023, suggesting increasing short-term liquidity pressures. The pronounced decrease in the cash ratio towards the end of the period is particularly notable, raising considerations about immediate cash availability to meet current obligations.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibited a general upward trend from late 2017 through the first quarter of 2023. Beginning at approximately $25.3 billion at the end of 2017, the value advanced steadily, with notable increases observed in the years following 2020. The peak was reached near the end of 2021, at nearly $39.4 billion. However, slight fluctuations followed, with current assets dipping somewhat in early 2023 but remaining above $39.9 billion.
- Current Liabilities
- Current liabilities showed a persistent increase over the analyzed period. Starting around $26.7 billion in December 2017, liabilities rose consistently with few interruptions. By the end of 2022 and into early 2023, liabilities exceeded $44.7 billion, marking a significant expansion in short-term obligations. The trajectory of current liabilities outpaced that of current assets in the latter periods, especially noticeable from 2021 onward.
- Current Ratio
- The current ratio generally hovered just below or around 1.0, indicating a tight balance between current assets and current liabilities. During 2018 and early 2019, the ratio remained stable near 0.94 to 0.95. In the early months of 2021, there was a temporary improvement with the ratio peaking at 1.07, signaling better short-term liquidity at that time. However, this improvement was not sustained, as the ratio subsequently declined steadily through 2022 and into 2023, reaching around 0.88 by the second quarter of 2023. This downward shift reflects the faster growth in current liabilities relative to current assets, suggesting a slight weakening in the company's short-term liquidity position.
Quick Ratio
AmerisourceBergen Corp., quick ratio calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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. | ||||||||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the reported periods. Total quick assets exhibit a general upward trajectory, increasing from approximately 13.2 billion US dollars at the end of 2017 to over 22.1 billion US dollars by mid-2023. This growth, though consistent, shows some fluctuations such as a dip in the middle of 2020 and a modest decline around the end of 2022 and early 2023.
Current liabilities also increase over time, rising from about 26.7 billion US dollars at the end of 2017 to roughly 46.8 billion US dollars by mid-2023. This increase reflects a growing short-term obligation profile, with a noticeable acceleration starting around late 2020 through 2023.
Regarding liquidity as measured by the quick ratio, the values fluctuate within a narrow range mostly below 1, indicating that quick assets cover less than half of the current liabilities. The quick ratio starts at 0.49 at the end of 2017, reaching a peak near 0.63 in early 2021, before gradually declining back to approximately 0.47 by mid-2023. This pattern suggests periods of improved liquidity in early 2021 followed by a gradual tightening through subsequent quarters.
- Total Quick Assets
- This metric shows a steady increase with some variability, reflecting growth in liquid assets such as cash and receivables. The upward trend suggests enhanced ability to meet short-term obligations, despite occasional reductions.
- Current Liabilities
- Current liabilities increased markedly across the analyzed timeframe, nearly doubling. This rise could indicate expanded operational scale or increased short-term financing needs, potentially exerting pressure on liquidity resources.
- Quick Ratio
- The quick ratio's fluctuation, generally staying below 1, signals that the company maintains a liquidity position where quick assets do not fully cover current liabilities. The peak in early 2021 reflects a temporary strengthening of liquidity, whereas the downward trend afterward may warrant monitoring to ensure adequate short-term financial health.
In summary, while liquid assets have increased, current liabilities have grown at a relatively faster pace, leading to a decline in the quick ratio in recent periods. This dynamic points to a cautious liquidity posture, emphasizing the importance of ongoing management of working capital and potential risks in meeting short-term obligations.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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. | ||||||||||||||||||||||||||||||
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).
1 Q3 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends between the periods from December 2017 to June 2023, focusing on total cash assets, current liabilities, and the cash ratio.
- Total Cash Assets
- Total cash assets showed fluctuations throughout the observed periods. Initially, there was a decline from approximately $3.04 billion at the end of 2017 to around $2.09 billion by the end of the first quarter of 2018. From that point, cash assets gradually increased, reaching a peak of roughly $6.64 billion in the first quarter of 2021. Subsequently, a significant decline occurred, with cash assets dropping to approximately $1.39 billion by June 2023. This indicates periods of cash accumulation followed by more recent declines, suggesting changes in liquidity management or operational cash flow requirements over time.
- Current Liabilities
- Current liabilities exhibited a generally increasing trend across the entire period. Starting from about $26.74 billion in December 2017, current liabilities consistently rose, exceeding $46.78 billion by June 2023. There were periods of sharper increases, particularly from late 2020 through 2023, which may reflect growing short-term obligations, increased payables, or other liabilities needing settlement within one year.
- Cash Ratio
- The cash ratio, representing the company's liquidity position relative to its current liabilities, displayed notable variability. Initially, it remained relatively low but stable around 0.09 to 0.11 until late 2020, peaking at 0.20 in the first quarter of 2021, coinciding with the peak in total cash assets. Afterward, the ratio dropped sharply, reaching low values around 0.03 by mid-2023. This decline in the cash ratio suggests a weakening ability to cover current liabilities with available cash, potentially indicating tighter liquidity conditions or increased short-term debt relative to cash holdings.
In summary, the data reflects a company that experienced an increase and subsequent decrease in cash assets alongside a steadily growing obligation in current liabilities. The declining cash ratio in recent periods may warrant closer monitoring of liquidity risk and short-term financial stability.