Philip Morris International Inc. (NYSE:PM)

Current Ratio

The current ratio experienced moderate fluctuations over the observed periods. Initially, it rose from 1.02 in March 2020 to a peak of 1.18 in June 2021, indicating a strengthening in short-term liquidity during this time. However, starting from the second half of 2021, there was a notable decline reaching 0.72 by December 2022, the lowest point in the dataset. Following this trough, the ratio showed some recovery but remained below 1.0 thereafter, oscillating between 0.75 and 0.94 until June 2024, and then declining slightly again to around 0.79 by June 2025. This trend suggests a weakening ability to cover short-term liabilities with current assets in the latter periods.

Quick Ratio

The quick ratio demonstrated a similar pattern to the current ratio though with generally lower values, ranging from 0.43 to 0.59 in the early periods. It peaked at 0.59 in June 2021, aligned with the high current ratio levels. After this peak, there was a downward trajectory reaching a minimum of 0.28 in March 2023. Post this low, a modest uptrend occurred with values rising back to approximately 0.44 by June 2024 before declining slightly to 0.36 by June 2025. Throughout the periods, the quick ratio remained significantly below 1.0, indicating limited immediate liquidity excluding inventories.

Cash Ratio

The cash ratio was the lowest among the liquidity ratios across all periods, reflecting the most conservative measure of liquidity based solely on cash and cash equivalents. Initially increasing from 0.23 in March 2020 to 0.37 by December 2020, the ratio then declined significantly to a trough of 0.11 in March 2023. Thereafter, it fluctuated modestly between 0.12 and 0.21, before gradually decreasing again toward 0.15 by June 2025. Overall, this low and declining cash ratio suggests a reduced cushion of cash on hand relative to current liabilities.

The analysis of the quarterly financial data reveals notable trends in the current assets, current liabilities, and the current ratio over the observed periods.

Current Assets

Current assets exhibit fluctuations across the quarters, starting at 16,861 million US dollars in the first quarter of 2020, generally rising to a peak near 23,364 million US dollars by the second quarter of 2025. Although variations are visible, a gradual upward trend is apparent, with intermittent declines, such as the drop observed from 21,492 million in the fourth quarter of 2020 to 17,910 million in the first quarter of 2021. Post-2021, the values consistently trend higher with some quarter-to-quarter variability, indicating a strengthening of short-term asset positions.

Current Liabilities

Current liabilities show more volatility and an overall increasing pattern. Beginning at 16,584 million US dollars in the first quarter of 2020, liabilities saw a modest reduction in mid-2020 but then increased significantly over subsequent quarters, with substantial spikes recorded such as the jump from 20,772 million in the fourth quarter of 2022 to 27,336 million in the same quarter, and again from 22,915 million in the first quarter of 2025 to over 28,148 million by the second quarter of 2025. This suggests rising short-term obligations and potentially greater liquidity pressure.

Current Ratio

The current ratio demonstrates a fluctuating downward trend with periodic recoveries, starting at a near-par level of 1.02 in early 2020 and reaching lows around 0.72 in the fourth quarter of 2022. The ratio generally remains below 1.0 from late 2021 onward, indicating that current liabilities often exceed current assets during this period, which may raise concerns about short-term liquidity management. Although occasional improvements occur (for example, a rebound to 0.94 in mid-2024), the trend does not sustain a return above 1.0, suggesting persistent liquidity constraints.

Overall, the data reflects an environment of increasing current liabilities relative to current assets, contributing to a weakening current ratio over time. This dynamic may warrant closer monitoring of liquidity risk and the management of short-term financial obligations.

Total Quick Assets

The total quick assets exhibit fluctuations without a clear long-term upward or downward trend from March 2020 through June 2025. Initial values hovered around 7,000 to 8,000 million USD, peaking at over 11,000 million USD in December 2020. However, a subsequent decline occurred in the early part of 2023, dropping below 7,100 million USD. Toward the later periods, total quick assets recovered, reaching approximately 10,000 million USD by mid-2025. This pattern suggests intermittent liquidity improvements followed by periodic contractions.

Current Liabilities

Current liabilities show a general increasing trend over the analyzed timeframe. Starting fluctuating near 16,000 million USD in early 2020, liabilities rose substantially by late 2022, surpassing 27,000 million USD at year-end 2022. Although there is some short-term volatility, the amount remains elevated in the range of approximately 22,000 to 28,000 million USD through 2024 and into mid-2025. The steady rise indicates growing short-term obligations, potentially exerting pressure on liquidity.

Quick Ratio

The quick ratio, representing liquidity, demonstrates a declining trend overall. Initial values near 0.5 improved slightly through mid-2021, reaching close to 0.59. However, from late 2021 onward, the ratio notably decreased, reaching a low of approximately 0.28 by the end of 2023. Although some recovery occurred afterwards, values remained below 0.5, settling around 0.36 by mid-2025. This decline points to diminishing immediate liquidity relative to current liabilities over time, suggesting increased risk related to short-term financial obligations.

Summary

Over the observed periods, the pattern indicates that despite occasional increases in total quick assets, the more pronounced growth in current liabilities has strained liquidity, as reflected in the falling quick ratio values. The company's ability to cover short-term liabilities with liquid assets appears to have weakened, particularly from late 2021 onward. This trend highlights the importance of monitoring short-term obligations and asset liquidity closely to maintain financial stability.

The analysis of the quarterly financial data reveals notable fluctuations and trends in the liquidity position and short-term obligations over the observed periods.

Total Cash Assets

The total cash assets exhibit variability with noticeable peaks and troughs across the quarters. Initial values start at approximately 3,746 million USD, gradually increasing to a peak near 7,280 million USD by the end of 2020. Following this peak, cash assets demonstrate a declining trend through 2022, hitting a low point around 2,428 million USD in mid-2023. Subsequently, there is some recovery with values rising again toward the end of 2024, reaching approximately 4,443 million USD before a slight decline in mid-2025. This pattern indicates periods of strong cash accumulation followed by drawdowns, suggesting shifts in liquidity management or cash usage.

Current Liabilities

Current liabilities show a generally increasing trend throughout the period. Starting at about 16,584 million USD in early 2020, liabilities rise with some quarterly variations, reaching significant highs above 27,000 million USD by the end of 2022. Although there are fluctuations, the level of current liabilities remains elevated, fluctuating around the 22,000 to 28,000 million USD range in subsequent quarters through mid-2025. This upward trajectory points to increased short-term obligations, which may reflect changes in operational financing or increased current debt.

Cash Ratio

The cash ratio, which measures cash assets against current liabilities, indicates overall liquidity and ability to cover short-term liabilities with cash. It started at a low level of 0.23 in early 2020, experiencing some improvement to 0.37 by the end of 2020, consistent with the cash asset peak. However, the ratio then declines sharply through 2022, reaching a low near 0.11 in mid-2023. Despite some recovery tendencies in late 2023 and through 2024, the cash ratio remains below the initial levels, fluctuating mostly between 0.12 and 0.21. This suggests a reduced liquidity cushion relative to immediate liabilities, pointing toward tighter short-term cash availability.

In summary, the data reflect a liquidity profile characterized by an early buildup of cash assets that substantially decrease after 2020, coupled with increasing current liabilities. The resulting cash ratio trend illustrates a contraction of liquid coverage for short-term obligations over time, indicating potential liquidity pressures or strategic cash deployment changes. The periodic recovery phases in cash assets and cash ratio signify attempts to rebalance liquidity, although the ratio does not return to earlier peak levels by mid-2025.