Philip Morris International Inc (PM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,216,000 | 3,060,000 | 3,207,000 | 4,496,000 | 7,280,000 |
| Short-term investments | US$ in thousands | — | 1,000 | — | — | 4,798,000 |
| Receivables | US$ in thousands | 4,675,000 | 4,391,000 | 5,444,000 | 4,458,000 | 4,126,000 |
| Total current liabilities | US$ in thousands | 22,915,000 | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 |
| Quick ratio | 0.39 | 0.28 | 0.32 | 0.47 | 0.83 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,216,000K
+ $—K
+ $4,675,000K)
÷ $22,915,000K
= 0.39
The quick ratio of Philip Morris International Inc has displayed a decreasing trend over the past five years, starting at 0.83 in December 2020 and declining to 0.39 by December 2024. This indicates that the company may be experiencing challenges in meeting its short-term obligations with its most liquid assets. A quick ratio below 1 suggests that the company may have difficulties in covering its current liabilities with its quick assets alone. Further analysis of the company's liquidity position and management of working capital may be warranted to understand the factors contributing to this declining trend in the quick ratio.
Peer comparison
Dec 31, 2024