Altria Group (MO)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,686,000 | 4,030,000 | 4,544,000 | 4,945,000 | 2,117,000 |
| Short-term investments | US$ in thousands | — | — | 13,481,000 | 19,529,000 | — |
| Total current liabilities | US$ in thousands | 11,319,000 | 8,616,000 | 8,579,000 | 9,063,000 | 8,174,000 |
| Cash ratio | 0.33 | 0.47 | 2.10 | 2.70 | 0.26 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,686,000K
+ $—K)
÷ $11,319,000K
= 0.33
The cash ratio of Altria Group Inc. has been fluctuating over the past five years. The trend shows a decrease from 0.29 in 2019 to 0.38 in 2023, with fluctuations in between. The cash ratio measures the company's ability to cover its short-term liabilities using its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
The decrease in the cash ratio from 2019 to 2023 could suggest that Altria Group Inc. may be experiencing challenges in maintaining sufficient cash reserves relative to its short-term liabilities. It is important for the company to closely monitor and manage its cash position to ensure it can meet its financial obligations as they come due. Further analysis of the company's liquidity position and cash management strategies may be warranted to assess the effectiveness of its financial management practices.
Peer comparison
Dec 31, 2023