Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Baxter International Inc., liquidity ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.05 | 1.71 | 1.69 | 1.95 | 1.78 | |
| Quick ratio | 1.58 | 0.95 | 0.96 | 1.20 | 1.10 | |
| Cash ratio | 1.28 | 0.48 | 0.46 | 0.69 | 0.60 |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Baxter International Inc. current ratio improved from 2013 to 2014 and from 2014 to 2015. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Baxter International Inc. quick ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Baxter International Inc. cash ratio improved from 2013 to 2014 and from 2014 to 2015. |
Current Ratio
Baxter International Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 11,796) | 10,351) | 10,004) | 9,260) | 8,650) | |
| Current liabilities | 5,750) | 6,042) | 5,906) | 4,759) | 4,857) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.05 | 1.71 | 1.69 | 1.95 | 1.78 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Current ratio = Current assets ÷ Current liabilities
= 11,796 ÷ 5,750 = 2.05
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. | Baxter International Inc. current ratio improved from 2013 to 2014 and from 2014 to 2015. |
Quick Ratio
Baxter International Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 2,213) | 2,925) | 2,733) | 3,270) | 2,905) | |
| Accounts and other current receivables, net | 1,731) | 2,803) | 2,911) | 2,425) | 2,420) | |
| Investment in Baxalta common stock | 5,148) | —) | —) | —) | —) | |
| Total quick assets | 9,092) | 5,728) | 5,644) | 5,695) | 5,325) | |
| Current liabilities | 5,750) | 6,042) | 5,906) | 4,759) | 4,857) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.58 | 0.95 | 0.96 | 1.20 | 1.10 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,092 ÷ 5,750 = 1.58
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. | Baxter International Inc. quick ratio deteriorated from 2013 to 2014 but then improved from 2014 to 2015 exceeding 2013 level. |
Cash Ratio
Baxter International Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and equivalents | 2,213) | 2,925) | 2,733) | 3,270) | 2,905) | |
| Investment in Baxalta common stock | 5,148) | —) | —) | —) | —) | |
| Total cash assets | 7,361) | 2,925) | 2,733) | 3,270) | 2,905) | |
| Current liabilities | 5,750) | 6,042) | 5,906) | 4,759) | 4,857) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.28 | 0.48 | 0.46 | 0.69 | 0.60 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Abbott Laboratories | — | — | — | — | — | |
| Cigna Group | — | — | — | — | — | |
| CVS Health Corp. | — | — | — | — | — | |
| Elevance Health Inc. | — | — | — | — | — | |
| Intuitive Surgical Inc. | — | — | — | — | — | |
| Medtronic PLC | — | — | — | — | — | |
| UnitedHealth Group Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).
1 2015 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,361 ÷ 5,750 = 1.28
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. | Baxter International Inc. cash ratio improved from 2013 to 2014 and from 2014 to 2015. |