Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Philip Morris International Inc., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.09 | 1.13 | 1.35 | 1.07 | 1.03 | |
| Quick ratio | 0.56 | 0.59 | 0.76 | 0.47 | 0.40 | |
| Cash ratio | 0.36 | 0.38 | 0.53 | 0.26 | 0.22 |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).
| Liquidity 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 2017 to 2018 and from 2018 to 2019. |
| 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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Philip Morris International Inc.’s cash ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Current Ratio
Philip Morris International Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 20,514 | 19,442 | 21,594 | 17,608 | 15,804 | |
| Current liabilities | 18,833 | 17,191 | 15,962 | 16,467 | 15,386 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.09 | 1.13 | 1.35 | 1.07 | 1.03 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.59 | 0.20 | 0.64 | 0.98 | 0.86 | |
| Current Ratio, Sector | ||||||
| Tobacco | 0.94 | 0.62 | 1.14 | 1.04 | 0.97 | |
| Current Ratio, Industry | ||||||
| Consumer Goods | 0.92 | 0.93 | 1.16 | 1.17 | 1.18 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 20,514 ÷ 18,833 = 1.09
2 Click competitor name to see calculations.
| Liquidity 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 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Philip Morris International Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,861 | 6,593 | 8,447 | 4,239 | 3,417 | |
| Trade receivables, less allowances | 3,080 | 2,950 | 3,194 | 3,499 | 2,778 | |
| Other receivables | 637 | 614 | 544 | — | — | |
| Total quick assets | 10,578 | 10,157 | 12,185 | 7,738 | 6,195 | |
| Current liabilities | 18,833 | 17,191 | 15,962 | 16,467 | 15,386 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.56 | 0.59 | 0.76 | 0.47 | 0.40 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.28 | 0.07 | 0.21 | 0.64 | 0.35 | |
| Quick Ratio, Sector | ||||||
| Tobacco | 0.48 | 0.30 | 0.60 | 0.52 | 0.39 | |
| Quick Ratio, Industry | ||||||
| Consumer Goods | 0.59 | 0.59 | 0.78 | 0.76 | 0.73 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,578 ÷ 18,833 = 0.56
2 Click competitor name to see calculations.
| Liquidity 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 deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Philip Morris International Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 6,861 | 6,593 | 8,447 | 4,239 | 3,417 | |
| Total cash assets | 6,861 | 6,593 | 8,447 | 4,239 | 3,417 | |
| Current liabilities | 18,833 | 17,191 | 15,962 | 16,467 | 15,386 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.36 | 0.38 | 0.53 | 0.26 | 0.22 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Altria Group Inc. | 0.26 | 0.06 | 0.18 | 0.62 | 0.33 | |
| Cash Ratio, Sector | ||||||
| Tobacco | 0.33 | 0.21 | 0.43 | 0.37 | 0.26 | |
| Cash Ratio, Industry | ||||||
| Consumer Goods | 0.35 | 0.38 | 0.56 | 0.54 | 0.49 | |
Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-13), 10-K (filing date: 2017-02-14), 10-K (filing date: 2016-02-17).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 6,861 ÷ 18,833 = 0.36
2 Click competitor name to see calculations.
| Liquidity 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 deteriorated from 2017 to 2018 and from 2018 to 2019. |