Philip Morris International Inc (PM)

Liquidity ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 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 1.09 1.08 0.95 0.85
Quick ratio 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 0.59 0.60 0.49 0.39
Cash ratio 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 0.36 0.36 0.22 0.17

Philip Morris International Inc's liquidity ratios show some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to pay its short-term liabilities with its current assets, has ranged from a low of 0.72 to a high of 0.92. This indicates that the company may have had some challenges in meeting its short-term obligations in some quarters, but overall, it seems to have been able to maintain a reasonable level of liquidity.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, shows a similar pattern of fluctuation, ranging from 0.36 to 0.57. This suggests that while the company's cash and near-cash assets may not have always been sufficient to cover its short-term liabilities, it has generally managed to maintain a level of liquidity that is close to industry norms.

The cash ratio, which specifically measures the company's ability to cover its current liabilities with cash and cash equivalents, has also fluctuated, ranging from 0.17 to 0.35. This indicates that while Philip Morris International Inc may not always have had a high level of cash on hand relative to its short-term liabilities, it has generally maintained a reasonable level of liquidity.

Overall, based on these liquidity ratios, Philip Morris International Inc appears to have managed its liquidity relatively well over the past eight quarters, although there have been some periods of lower liquidity. Monitoring these ratios going forward will be important to ensure the company's ability to meet its short-term obligations and maintain financial stability.

See also:

Philip Morris International Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 192.19 180.16 178.35 209.64 187.74 128.27 145.13 184.47 183.46 193.36 221.13 235.91 243.24 208.29 235.97 224.03 223.40 218.78 212.96 108.98

The cash conversion cycle of Philip Morris International Inc has exhibited fluctuation over the past 8 quarters. It reached its highest point in Q3 2023 at 380.91 days and its lowest point in Q3 2022 at 181.39 days. The company experienced a prolonged cash conversion cycle in Q3 2023, indicating a slower turnover of cash. However, the cycle improved in Q4 2023, decreasing to 233.29 days. This could suggest more efficient management of working capital, as the company took fewer days to convert its investments in inventory and accounts receivable into cash. Overall, monitoring and optimizing the cash conversion cycle is crucial for Philip Morris International Inc to enhance its liquidity and operating efficiency.