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Philip Morris International Inc. (PM) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

Philip Morris International Inc., liquidity ratios

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
Current ratio 0.97 1.00 1.07 1.31 1.47
Quick ratio 0.39 0.39 0.37 0.41 0.43
Cash ratio 0.18 0.17 0.13 0.14 0.15

Source: Based on data from Philip Morris International Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Philip Morris International Inc.'s current ratio deteriorated from 2010 to 2011 and from 2011 to 2012.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Philip Morris International Inc.'s quick ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Philip Morris International Inc.'s cash ratio improved from 2010 to 2011 and from 2011 to 2012.

Current Ratio

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
  Selected Financial Data (USD $ in millions)
Current assets 16,590  14,859  13,756  14,682  14,939 
Current liabilities 17,016  14,794  12,804  11,178  10,144 
  Current Ratio, Comparison to Industry
Philip Morris International Inc.1 0.97 1.00 1.07 1.31 1.47
  Industry, Consumer Goods 1.10 1.10 1.20 1.10 1.07

Source: Based on data from Philip Morris International Inc. Annual Reports

2012 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 16,590 ÷ 17,016 = 0.97

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Philip Morris International Inc.'s current ratio deteriorated from 2010 to 2011 and from 2011 to 2012.

Quick Ratio

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,983  2,550  1,703  1,540  1,531 
Receivables, less allowances 3,589  3,201  3,009  3,098  2,848 
Total quick assets 6,572  5,751  4,712  4,638  4,379 
Current liabilities 17,016  14,794  12,804  11,178  10,144 
  Quick Ratio, Comparison to Industry
Philip Morris International Inc.1 0.39 0.39 0.37 0.41 0.43
  Industry, Consumer Goods 0.74 0.75 0.82 0.70 0.69

Source: Based on data from Philip Morris International Inc. Annual Reports

2012 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 6,572 ÷ 17,016 = 0.39

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Philip Morris International Inc.'s quick ratio improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

Cash Ratio

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    Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009 Dec 31, 2008
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents 2,983  2,550  1,703  1,540  1,531 
Total cash assets 2,983  2,550  1,703  1,540  1,531 
Current liabilities 17,016  14,794  12,804  11,178  10,144 
  Cash Ratio, Comparison to Industry
Philip Morris International Inc.1 0.18 0.17 0.13 0.14 0.15
  Industry, Consumer Goods 0.30 0.33 0.35 0.28 0.23

Source: Based on data from Philip Morris International Inc. Annual Reports

2012 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 2,983 ÷ 17,016 = 0.18

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Philip Morris International Inc.'s cash ratio improved from 2010 to 2011 and from 2011 to 2012.