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.
Peer comparison
Dec 31, 2024