Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Philip Morris International Inc., liquidity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the ratios demonstrate a degree of cyclicality, with periods of relative strength followed by periods of relative weakness. A review of the trends suggests a potential stabilization in more recent quarters, though levels remain below historical highs.
- Current Ratio
- The current ratio experienced a decline from 0.92 in March 2022 to a low of 0.72 in December 2022. A partial recovery was observed through September 2023, reaching 0.89, before declining again to 0.75 by December 2023. The ratio then increased to 0.94 in March 2024, remaining relatively stable at 0.94 in June 2024, before decreasing to 0.88 by December 2024. The most recent quarters show a slight upward trend, reaching 0.96 in December 2025. This suggests a modest improvement in the company’s ability to cover short-term liabilities with short-term assets.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, decreasing from 0.44 in March 2022 to 0.29 in December 2022. It showed some improvement through June 2023, peaking at 0.37, but then decreased to 0.28 by December 2023. A rise to 0.44 was noted in June 2024, followed by a slight decline to 0.39 in December 2024. The ratio has shown a slight increase in the latest reported periods, reaching 0.42 in December 2025. The quick ratio consistently remains lower than the current ratio, indicating a reliance on inventory to meet current obligations.
- Cash Ratio
- The cash ratio demonstrated the most pronounced decline, falling from 0.23 in March 2022 to 0.12 in December 2022. While there were minor fluctuations, the ratio remained relatively low throughout 2023, bottoming out at 0.11 in March 2023. A gradual increase was observed, reaching 0.19 in December 2025. However, the cash ratio consistently represents the smallest proportion of current assets, suggesting limited immediate liquidity.
- Overall Trends
- A common trend across all three ratios is the initial decline in 2022, potentially reflecting increased short-term obligations or decreased liquidity. The subsequent periods show some recovery, but the ratios generally remain below their initial levels. The recent quarters suggest a potential stabilization and modest improvement, but continued monitoring is warranted to confirm this trend. The consistent difference between the current and quick ratios highlights the significance of inventory in the company’s short-term asset structure.
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Current Ratio
Philip Morris International Inc., current ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current assets | 24,363) | 22,665) | 23,364) | 22,196) | 20,170) | 20,796) | 21,028) | 20,874) | 19,755) | 19,193) | 19,836) | 19,571) | 19,619) | 19,035) | 18,376) | 18,724) | |||||
| Current liabilities | 25,427) | 26,719) | 28,148) | 28,087) | 22,915) | 23,366) | 22,416) | 22,168) | 26,383) | 21,547) | 23,245) | 22,985) | 27,336) | 20,772) | 20,547) | 20,417) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Current ratio1 | 0.96 | 0.85 | 0.83 | 0.79 | 0.88 | 0.89 | 0.94 | 0.94 | 0.75 | 0.89 | 0.85 | 0.85 | 0.72 | 0.92 | 0.89 | 0.92 | |||||
| Benchmarks | |||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||
| Coca-Cola Co. | 1.46 | 1.21 | 1.21 | 1.10 | 1.03 | 1.06 | 1.08 | 1.04 | 1.13 | 1.14 | 1.14 | 1.15 | 1.15 | 1.13 | 1.13 | 1.18 | |||||
| Mondelēz International Inc. | 0.59 | 0.61 | 0.64 | 0.61 | 0.68 | 0.63 | 0.68 | 0.77 | 0.62 | 0.61 | 0.65 | 0.68 | 0.60 | 0.69 | 0.68 | 0.68 | |||||
| PepsiCo Inc. | 0.85 | 0.91 | 0.78 | 0.83 | 0.82 | 0.89 | 0.83 | 0.86 | 0.85 | 0.88 | 0.84 | 0.87 | 0.80 | 0.92 | 0.83 | 0.87 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,363 ÷ 25,427 = 0.96
2 Click competitor name to see calculations.
The current ratio exhibited fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio demonstrated relative stability, followed by a notable decline, and then a period of recovery towards the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Sep 30, 2022)
- The current ratio began at 0.92 and experienced a slight decrease to 0.89 before recovering to 0.92. This suggests a generally balanced position between current assets and current liabilities during this period, with minor variations.
- Significant Decline (Dec 31, 2022 – Jun 30, 2023)
- A substantial decrease in the current ratio was observed, falling from 0.72 to 0.85. This decline indicates a weakening in the company’s ability to cover its short-term liabilities with its current assets. The ratio reached its lowest point at 0.72 in December 2022.
- Recovery and Stabilization (Sep 30, 2023 – Dec 31, 2025)
- Following the decline, the current ratio began to recover, reaching 0.89 by September 2023. This upward trend continued, culminating in a ratio of 0.96 by December 2025. The recovery suggests improved liquidity and a strengthening ability to meet short-term obligations. There were minor fluctuations within this recovery period, but the overall trend remained positive.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- The ratio remained relatively stable between 0.94 and 0.88 for the first three quarters of 2024. The final quarter of 2025 showed the highest ratio value in the entire period, at 0.96, indicating a strong liquidity position at the end of the analysis.
Overall, the current ratio demonstrates a cyclical pattern. While a period of weakness was evident, the company ultimately demonstrated an ability to improve its short-term liquidity position by the end of the observed period.
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Quick Ratio
Philip Morris International Inc., quick ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 4,872) | 4,037) | 4,138) | 4,443) | 4,216) | 4,258) | 4,807) | 3,968) | 3,060) | 3,017) | 3,492) | 2,428) | 3,207) | 5,368) | 5,036) | 4,622) | |||||
| Trade receivables, less allowances | 4,572) | 4,796) | 4,994) | 4,880) | 3,789) | 4,239) | 4,240) | 4,188) | 3,461) | 3,891) | 4,110) | 3,642) | 3,850) | 3,862) | 3,822) | 3,650) | |||||
| Other receivables, less allowances | 1,238) | 1,027) | 895) | 913) | 886) | 952) | 877) | 864) | 930) | 898) | 902) | 957) | 906) | 749) | 771) | 768) | |||||
| Total quick assets | 10,682) | 9,860) | 10,027) | 10,236) | 8,891) | 9,449) | 9,924) | 9,020) | 7,451) | 7,806) | 8,504) | 7,027) | 7,963) | 9,979) | 9,629) | 9,040) | |||||
| Current liabilities | 25,427) | 26,719) | 28,148) | 28,087) | 22,915) | 23,366) | 22,416) | 22,168) | 26,383) | 21,547) | 23,245) | 22,985) | 27,336) | 20,772) | 20,547) | 20,417) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Quick ratio1 | 0.42 | 0.37 | 0.36 | 0.36 | 0.39 | 0.40 | 0.44 | 0.41 | 0.28 | 0.36 | 0.37 | 0.31 | 0.29 | 0.48 | 0.47 | 0.44 | |||||
| Benchmarks | |||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||
| Coca-Cola Co. | 0.89 | 0.88 | 0.84 | 0.75 | 0.72 | 0.78 | 0.80 | 0.75 | 0.72 | 0.78 | 0.82 | 0.81 | 0.77 | 0.80 | 0.78 | 0.80 | |||||
| Mondelēz International Inc. | 0.28 | 0.26 | 0.25 | 0.28 | 0.27 | 0.25 | 0.20 | 0.21 | 0.29 | 0.27 | 0.25 | 0.29 | 0.30 | 0.35 | 0.32 | 0.35 | |||||
| PepsiCo Inc. | 0.64 | 0.68 | 0.56 | 0.62 | 0.62 | 0.66 | 0.60 | 0.64 | 0.66 | 0.68 | 0.60 | 0.61 | 0.58 | 0.68 | 0.59 | 0.63 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 10,682 ÷ 25,427 = 0.42
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates fluctuations, generally indicating a constrained ability to meet short-term obligations with the most liquid assets. An initial upward trend is followed by a significant decline, then a period of relative stability before a slight improvement towards the end of the observed timeframe.
- Overall Trend
- The quick ratio began at 0.44 in March 2022 and increased to a peak of 0.48 in September 2022. A substantial decrease followed, reaching a low of 0.29 in December 2022. The ratio then recovered somewhat, oscillating between 0.31 and 0.44 through the remainder of 2023. A modest upward trend is apparent in the latter part of the period, with the ratio reaching 0.42 by December 2025.
- Short-Term Volatility (2022-2023)
- The period between March 2022 and December 2023 exhibits considerable volatility. The initial increase suggests improved liquidity, but the subsequent drop indicates a weakening of the company’s ability to cover immediate liabilities. The fluctuations during 2023 may be attributable to seasonal variations in working capital or changes in short-term financing strategies.
- Recent Performance (2024-2025)
- From 2024 onwards, the quick ratio demonstrates a more stable, albeit modest, improvement. While not exhibiting dramatic growth, the ratio consistently remains above 0.36, suggesting a gradual strengthening of the short-term liquidity position. The increase from 0.39 in December 2024 to 0.42 in December 2025 is a positive indicator.
- Asset and Liability Relationship
- The underlying components reveal that total quick assets generally remained between US$7,000 million and US$10,000 million throughout the period. However, current liabilities experienced a more significant range, fluctuating between US$20,000 million and US$28,000 million. The substantial difference between these values explains the relatively low quick ratio values observed. The increase in quick assets in the latter part of the period, coupled with a slight decrease in current liabilities, contributes to the observed improvement in the ratio.
In conclusion, the quick ratio suggests a consistent, though limited, short-term liquidity position. While improvements are noted towards the end of the analyzed period, the company’s ability to meet short-term obligations remains dependent on its quick assets relative to its current liabilities.
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Cash Ratio
Philip Morris International Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash and cash equivalents | 4,872) | 4,037) | 4,138) | 4,443) | 4,216) | 4,258) | 4,807) | 3,968) | 3,060) | 3,017) | 3,492) | 2,428) | 3,207) | 5,368) | 5,036) | 4,622) | |||||
| Total cash assets | 4,872) | 4,037) | 4,138) | 4,443) | 4,216) | 4,258) | 4,807) | 3,968) | 3,060) | 3,017) | 3,492) | 2,428) | 3,207) | 5,368) | 5,036) | 4,622) | |||||
| Current liabilities | 25,427) | 26,719) | 28,148) | 28,087) | 22,915) | 23,366) | 22,416) | 22,168) | 26,383) | 21,547) | 23,245) | 22,985) | 27,336) | 20,772) | 20,547) | 20,417) | |||||
| Liquidity Ratio | |||||||||||||||||||||
| Cash ratio1 | 0.19 | 0.15 | 0.15 | 0.16 | 0.18 | 0.18 | 0.21 | 0.18 | 0.12 | 0.14 | 0.15 | 0.11 | 0.12 | 0.26 | 0.25 | 0.23 | |||||
| Benchmarks | |||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||
| Coca-Cola Co. | 0.74 | 0.70 | 0.65 | 0.58 | 0.58 | 0.64 | 0.65 | 0.60 | 0.58 | 0.63 | 0.65 | 0.61 | 0.59 | 0.62 | 0.57 | 0.55 | |||||
| Mondelēz International Inc. | 0.10 | 0.06 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 | 0.05 | 0.10 | 0.09 | 0.08 | 0.10 | 0.11 | 0.15 | 0.14 | 0.14 | |||||
| PepsiCo Inc. | 0.29 | 0.27 | 0.22 | 0.27 | 0.29 | 0.27 | 0.21 | 0.28 | 0.32 | 0.31 | 0.22 | 0.20 | 0.20 | 0.26 | 0.21 | 0.27 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,872 ÷ 25,427 = 0.19
2 Click competitor name to see calculations.
The cash ratio for the analyzed period demonstrates fluctuations, generally indicating a moderate ability to meet current obligations with only cash and cash equivalents. An initial upward trend is followed by a significant decline, then a period of relative stabilization with some subsequent improvement.
- Overall Trend
- The cash ratio began at 0.23 in March 2022 and increased to a peak of 0.26 by September 2022. A substantial decrease followed, reaching a low of 0.11 in March 2023. The ratio then exhibited a degree of recovery, oscillating between 0.14 and 0.21 through the end of 2023 and the first half of 2024. The most recent quarters show a slight upward trend, reaching 0.19 by December 2025.
- Initial Increase (March 2022 - September 2022)
- The increase in the cash ratio during this period suggests an improvement in the company’s immediate liquidity position. This could be attributed to increased cash holdings or a decrease in current liabilities, or a combination of both. However, the magnitude of the change is relatively small.
- Significant Decline (September 2022 - March 2023)
- The sharp decline in the cash ratio is the most prominent feature of the period. This suggests a weakening in the company’s ability to cover its short-term liabilities with readily available cash. The decrease is likely due to a combination of factors, including a substantial reduction in total cash assets and a significant increase in current liabilities, particularly evident in December 2022.
- Stabilization and Recovery (March 2023 - December 2024)
- Following the decline, the cash ratio stabilized, fluctuating within a narrower range. This indicates that the company’s immediate liquidity position, while still lower than the initial period, was not deteriorating further. The slight upward movement in the latter half of 2024 suggests some improvement in the company’s ability to meet its short-term obligations.
- Recent Trend (March 2025 - December 2025)
- The most recent data points indicate a continued, albeit modest, improvement in the cash ratio. This suggests a positive trend in the company’s short-term liquidity, potentially driven by increased cash holdings or a reduction in current liabilities.
Throughout the analyzed period, the cash ratio remained below 0.30, indicating a limited capacity to cover current liabilities solely with cash. The fluctuations highlight the importance of monitoring both cash asset levels and current liability management.
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