Altria Group (MO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,127,000 | 3,686,000 | 4,030,000 | 4,544,000 | 4,945,000 |
| Short-term investments | US$ in thousands | — | -5,000 | — | 13,481,000 | 19,529,000 |
| Total current liabilities | US$ in thousands | 8,781,000 | 11,319,000 | 8,616,000 | 8,579,000 | 9,063,000 |
| Cash ratio | 0.36 | 0.33 | 0.47 | 2.10 | 2.70 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,127,000K
+ $—K)
÷ $8,781,000K
= 0.36
The cash ratio of Altria Group has shown a declining trend over the years. As of December 31, 2020, the cash ratio stood at 2.70, indicating that the company had $2.70 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.36, suggesting a significant reduction in the company's liquidity position. This downward trend may raise concerns about the company's ability to meet its short-term obligations using its available cash resources alone. It is essential for stakeholders to monitor this ratio closely to assess the company's liquidity and financial health accurately.
Peer comparison
Dec 31, 2024