Altria Group (MO)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 0.59 0.56 0.56 0.62
Quick ratio 0.33 0.15 0.08 0.43 0.47 0.31 0.31 0.49 2.11 2.81 3.78 2.58 2.72 2.86 0.53 0.52 0.28 0.23 0.25 0.35
Cash ratio 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 0.26 0.21 0.23 0.33

The liquidity ratios of Altria Group Inc. show fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has ranged from a low of 0.33 in Q3 2023 to a high of 0.84 in Q4 2022. This indicates that the company may have had difficulty meeting its short-term obligations in some quarters.

The quick ratio, a more conservative measure of liquidity that excludes inventory from current assets, follows a similar trend, with the lowest level observed in Q3 2023 at 0.21 and the highest in Q4 2022 at 0.70. The quick ratio suggests that the company may struggle to pay off its current liabilities without relying on inventory in certain quarters.

Lastly, the cash ratio, which is the most stringent measure of liquidity as it only considers cash and cash equivalents relative to current liabilities, reveals a somewhat unstable pattern. The ratio has fluctuated between 0.11 in Q2 2023 and 0.50 in Q1 2022, indicating that Altria Group Inc. may have experienced periods of limited cash resources relative to its short-term obligations.

Overall, the liquidity ratios suggest that Altria Group Inc. has faced challenges in maintaining sufficient liquidity to cover its immediate financial obligations consistently. It may be important for the company to closely monitor and manage its liquidity position to ensure financial stability and operational continuity.

See also:

Altria Group Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 23.75 40.90 42.40 50.17 37.81 40.90 43.21 45.88 39.61 26.52 46.62 57.17 54.89 59.46 75.55 78.50 100.04 91.41 93.28 101.06

The cash conversion cycle of Altria Group Inc. has shown some fluctuations over the past eight quarters. Looking at the trend, we observe that the cycle peaked at 74.10 days in Q1 2023, indicating that it took the company 74.10 days to convert its investments in inventory into cash received from sales. Subsequently, in Q2 2023, the cycle decreased to 68.92 days before further falling to 40.69 days in Q3 2023. This suggests that the company was able to manage its inventory and accounts receivable more efficiently during these periods.

Comparing the Q4 figures across different years, the cash conversion cycle in 2023 (38.22 days) was lower than that in 2022 (61.31 days), indicating a potential improvement in the company's ability to convert its assets into cash. Overall, a lower cash conversion cycle signifies that Altria Group Inc. requires fewer days to generate cash from its operating cycle, which can be beneficial for liquidity and working capital management. However, it is essential to analyze the underlying factors contributing to these fluctuations to assess the company's operational efficiency and cash flow management.