Altria Group (MO)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 71,000 | 48,000 | 47,000 | 137,000 | 152,000 |
| Total current liabilities | US$ in thousands | 11,319,000 | 8,616,000 | 8,579,000 | 9,063,000 | 8,174,000 |
| Quick ratio | 0.33 | 0.47 | 2.11 | 2.72 | 0.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,686,000K
+ $—K
+ $71,000K)
÷ $11,319,000K
= 0.33
The quick ratio of Altria Group Inc. has exhibited fluctuations over the past five years. The ratio stood at 0.39 as of December 31, 2023, indicating that the company had $0.39 of liquid assets available to cover each dollar of current liabilities.
Comparing this to prior years, we observe a decline from 0.70 in 2022 to 0.39 in 2023, signifying a potential strain on the company's ability to meet short-term obligations. Despite this decrease, the quick ratio in 2023 remains higher than in 2019, suggesting an improvement in the company's liquidity position over the long term.
It is worth noting that a quick ratio below 1 may raise concerns about the company's short-term liquidity, as it implies that current liabilities exceed current assets readily convertible to cash. Investors and creditors may monitor Altria Group's future financial performance to assess whether the downward trend in the quick ratio continues or if management takes actions to improve liquidity.
Peer comparison
Dec 31, 2023