Philip Morris International Inc (PM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,060,000 | 3,207,000 | 4,496,000 | 7,280,000 | 6,861,000 |
| Short-term investments | US$ in thousands | — | — | — | 4,798,000 | 0 |
| Receivables | US$ in thousands | 4,391,000 | 5,444,000 | 4,458,000 | 4,126,000 | 4,240,000 |
| Total current liabilities | US$ in thousands | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 | 18,833,000 |
| Quick ratio | 0.28 | 0.32 | 0.47 | 0.83 | 0.59 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,060,000K
+ $—K
+ $4,391,000K)
÷ $26,383,000K
= 0.28
The quick ratio of Philip Morris International Inc has shown a declining trend over the past five years. The ratio decreased from 0.60 in 2019 to 0.34 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over the years. A quick ratio below 1.0 suggests that the company may have difficulty meeting its current liabilities without relying on selling inventory or receivables. It is important for investors and creditors to monitor this trend closely as a declining quick ratio may indicate potential liquidity challenges for the company.
Peer comparison
Dec 31, 2023