Philip Morris International Inc (PM)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 19,755,000 | 19,619,000 | 17,717,000 | 21,492,000 | 20,514,000 |
| Total current liabilities | US$ in thousands | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 | 18,833,000 |
| Current ratio | 0.75 | 0.72 | 0.92 | 1.10 | 1.09 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,755,000K ÷ $26,383,000K
= 0.75
The current ratio of Philip Morris International Inc has exhibited a downward trend over the past five years. As of December 31, 2023, the current ratio stands at 0.75, indicating that the company may have difficulty meeting its short-term financial obligations with its current assets alone.
Compared to the ratios of 2022 and 2021, which were 0.72 and 0.92 respectively, the current ratio has decreased further, reflecting a potential liquidity challenge for the company. In 2020 and 2019, the current ratio was higher at 1.10 and 1.09 respectively, suggesting a stronger ability to cover short-term liabilities with current assets in those years.
The declining trend in the current ratio may raise concerns about Philip Morris International Inc's liquidity position and ability to manage short-term obligations effectively. This trend warrants further investigation into the company's current asset and liability management practices to ensure its financial health and stability.
Peer comparison
Dec 31, 2023