Altria Group (MO)

Liquidity ratios

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
Current ratio 0.51 0.44 0.45 0.48 0.49 0.33 0.37 0.78 0.84 0.50 0.49 0.62 0.71 0.74 0.72 0.80 0.79 0.77 0.75 0.71
Quick 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
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

The current ratio of Altria Group, a key liquidity ratio measuring short-term solvency, has shown fluctuating trends over the reported periods. It declined from 0.71 as of March 31, 2020, to a low of 0.37 on June 30, 2023, before recovering to 0.51 by December 31, 2024. This ratio remained below 1 for most of the periods, indicating potential challenges in meeting short-term obligations with current assets. However, the ratio improved in the latter half of 2024, suggesting enhanced liquidity position.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, exhibited a different pattern. It soared from 0.50 on March 31, 2020, to a peak of 3.75 on June 30, 2021, before decreasing again to 0.36 by December 31, 2024. This ratio surpassed 1 in several periods, indicating a strong ability to cover current liabilities with highly liquid assets, particularly in mid-2021.

The cash ratio, reflecting the firm's ability to cover short-term obligations with cash and cash equivalents alone, mirrored the trends of the quick ratio closely. It surged from 0.50 on March 31, 2020, to 3.75 on June 30, 2021, eventually settling at 0.36 on December 31, 2024. This ratio also exceeded 1 in multiple periods, underlining a robust cash position to meet immediate financial demands.

In summary, Altria Group's liquidity ratios have displayed varying performances over the analyzed periods, with the current ratio showing a more unstable trend compared to the quick and cash ratios. The company managed to improve its liquidity position towards the end of the reporting period, suggesting strengthened ability to cover short-term obligations with liquid assets, especially cash.

See also:

Altria Group Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 64.87 65.44 69.30 72.34 70.85 68.39 67.89 71.07 66.86 60.80 61.56 63.69 61.22 56.99 88.97 98.03 91.79 89.11 92.15 95.34

The cash conversion cycle (CCC) is a measure that reflects how long it takes for a company to convert its investments in inventory into cash flows from sales. A shorter CCC is generally favorable as it indicates that the company is efficiently managing its working capital.

Analyzing the data provided for Altria Group's CCC over the period from March 31, 2020, to December 31, 2024, there are fluctuations observed. From March 2020 to December 2021, the CCC decreased steadily from 95.34 days to 61.22 days, indicating an improvement in the company's efficiency in managing its cash conversion cycle.

However, there was an increase in CCC to 72.34 days by March 31, 2024, indicating a potential slowdown in the company's ability to convert inventory into cash. Subsequently, there was a slight decrease recorded by December 31, 2024, showing a CCC of 64.87 days.

Overall, while there were variations in Altria Group's CCC over the period analyzed, it generally demonstrated an ability to efficiently manage its working capital during most of the period. Monitoring changes in the CCC can provide insights into the company's operational efficiency and cash flow management.