Altria Group (MO)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,127,000 | 1,897,000 | 1,808,000 | 3,616,000 | 3,691,000 | 1,537,000 | 874,000 | 3,913,000 | 4,030,000 | 2,483,000 | 2,567,000 | 5,353,000 | 4,544,000 | 2,957,000 | 1,877,000 | 5,792,000 | 4,945,000 | 4,123,000 | 4,826,000 | 5,616,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 13,481,000 | 19,831,000 | 19,831,000 | 19,831,000 | 19,529,000 | 19,408,000 | — | — |
| Total current liabilities | US$ in thousands | 8,781,000 | 7,996,000 | 7,782,000 | 10,935,000 | 11,319,000 | 10,381,000 | 11,664,000 | 9,146,000 | 8,616,000 | 8,097,000 | 8,311,000 | 10,928,000 | 8,579,000 | 8,112,000 | 5,783,000 | 10,004,000 | 9,063,000 | 8,290,000 | 9,400,000 | 11,154,000 |
| Cash ratio | 0.36 | 0.24 | 0.23 | 0.33 | 0.33 | 0.15 | 0.07 | 0.43 | 0.47 | 0.31 | 0.31 | 0.49 | 2.10 | 2.81 | 3.75 | 2.56 | 2.70 | 2.84 | 0.51 | 0.50 |
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 exhibited fluctuations over the past five years. The ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.
From March 31, 2020, to June 30, 2021, the cash ratio showed an increasing trend, indicating an improved ability to cover short-term liabilities with available cash. The ratio reached its peak at 3.75 on June 30, 2021, suggesting a strong liquidity position at that time.
However, starting from September 30, 2021, the cash ratio began to decrease, indicating a potential decrease in the company's ability to cover short-term obligations solely with cash. The ratio fluctuated between 0.31 and 2.81 from September 30, 2021, to June 30, 2024.
The significant decrease from the peak of 3.75 to 0.07 on June 30, 2023, followed by a slight increase in subsequent periods, raises concerns about the company's liquidity position. This downward trend could potentially signal issues with managing short-term cash assets efficiently.
Overall, the cash ratio analysis suggests that while Altria Group had a strong ability to cover short-term obligations with cash in the past, potential liquidity challenges emerged in the subsequent periods, requiring a closer examination of the company's cash management practices.
Peer comparison
Dec 31, 2024