Philip Morris International Inc (PM)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Current ratio 0.88 0.89 0.94 0.94 0.75 0.89 0.85 0.85 0.72 0.92 0.89 0.92 0.92 1.00 1.18 1.18 1.10 1.12 1.13 1.02
Quick ratio 0.39 0.41 0.44 0.41 0.28 0.36 0.37 0.34 0.32 0.53 0.52 0.48 0.47 0.78 0.93 0.87 0.83 0.60 0.56 0.46
Cash ratio 0.18 0.18 0.21 0.18 0.12 0.14 0.15 0.11 0.12 0.27 0.25 0.23 0.23 0.51 0.60 0.56 0.62 0.31 0.27 0.23

Philip Morris International Inc's current ratio has shown fluctuations over the past few years, ranging from a low of 0.72 to a high of 1.18. However, in recent periods, the current ratio has been on a declining trend, dropping to 0.88 by the end of December 2024. This indicates that the company may be facing challenges in meeting its short-term obligations with current assets.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed variability. The ratio ranged from a low of 0.28 to a high of 0.93. Notably, the quick ratio declined significantly towards the end of the period, reaching 0.39 by December 31, 2024. This suggests that Philip Morris International Inc's ability to cover its immediate liabilities with its most liquid assets has weakened.

In terms of the cash ratio, which focuses solely on the most liquid assets such as cash and cash equivalents, the company has maintained a relatively stable position. The cash ratio ranged from 0.11 to 0.62, with the lowest level recorded at 0.11 and the highest at 0.62. However, by the end of December 2024, the cash ratio stood at 0.18, indicating a moderate level of liquidity in terms of cash reserves.

Overall, the liquidity analysis highlights some concerns regarding Philip Morris International Inc's ability to meet its short-term obligations, as evidenced by the declining trends in the current and quick ratios. However, the relatively stable cash ratio suggests that the company maintains a reasonable level of cash reserves to address immediate liquidity needs.

See also:

Philip Morris International Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Cash conversion cycle days 178.95 196.08 197.59 205.41 192.19 180.16 178.35 209.64 187.74 128.27 145.13 184.47 183.46 193.36 221.13 235.91 243.24 208.29 235.97 224.03

The cash conversion cycle of Philip Morris International Inc has displayed some fluctuations over the analyzed periods. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

From March 2020 to December 2024, the cash conversion cycle ranged from a high of 243.24 days in December 2020 to a low of 128.27 days in September 2022. A lower number indicates a more efficient cash conversion cycle, implying that the company is able to quickly recover its investment in inventory and other resources.

Overall, the trend shows a general improvement in the cash conversion cycle efficiency, with some fluctuations observed periodically. This improvement can indicate better inventory management, shortened collection periods from customers, or more efficient payment to suppliers.

Analyzing the cash conversion cycle can help assess the company's liquidity, operational efficiency, and overall financial health.