Philip Morris International Inc (PM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,060,000 | 3,207,000 | 4,496,000 | 7,280,000 | 6,861,000 |
| Short-term investments | US$ in thousands | — | — | — | 4,798,000 | 0 |
| Total current liabilities | US$ in thousands | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 | 18,833,000 |
| Cash ratio | 0.12 | 0.12 | 0.23 | 0.62 | 0.36 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,060,000K
+ $—K)
÷ $26,383,000K
= 0.12
The cash ratio of Philip Morris International Inc has exhibited a declining trend over the past five years, decreasing from 0.40 in 2019 to 0.17 in 2023. This indicates that the company's ability to cover its current liabilities solely with its available cash and cash equivalents has weakened over time. A lower cash ratio may suggest potential liquidity concerns or inefficiencies in managing cash resources. It is important for stakeholders to closely monitor this trend and assess the company's liquidity position in conjunction with other financial metrics to ensure its financial health and stability.
Peer comparison
Dec 31, 2023