Philip Morris International Inc (PM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 20,170,000 | 19,755,000 | 19,619,000 | 17,717,000 | 21,492,000 |
| Total current liabilities | US$ in thousands | 22,915,000 | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 |
| Current ratio | 0.88 | 0.75 | 0.72 | 0.92 | 1.10 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,170,000K ÷ $22,915,000K
= 0.88
The current ratio of Philip Morris International Inc has been showing a declining trend over the past five years. Starting at 1.10 in December 2020, the ratio has decreased to 0.88 by December 2024. A current ratio below 1.0 indicates that the company may have difficulty meeting its short-term financial obligations with its current assets alone. The decreasing trend in the current ratio raises concerns about the company's liquidity position and ability to cover its short-term liabilities efficiently. Further analysis of the company's liquidity management and operational efficiency may be necessary to understand the factors contributing to this downward trend in the current ratio.