Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

Reynolds American Inc., liquidity ratios

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Current ratio 0.85 1.17 0.94 1.19 1.28
Quick ratio 0.45 0.54 0.32 0.56 0.72
Cash ratio 0.41 0.51 0.27 0.49 0.66

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Reynolds American Inc. current ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Reynolds American Inc. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Reynolds American Inc. cash ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.

Current Ratio

Reynolds American Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in millions)
Current assets 4,238 6,187 3,323 3,655 4,812
Current liabilities 4,985 5,291 3,544 3,076 3,769
Liquidity Ratio
Current ratio1 0.85 1.17 0.94 1.19 1.28
Benchmarks
Current Ratio, Competitors2
Coca-Cola Co.
Mondelēz International Inc.
PepsiCo Inc.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 2016 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,238 ÷ 4,985 = 0.85

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. Reynolds American Inc. current ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016.

Quick Ratio

Reynolds American Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,051 2,567 966 1,500 2,502
Short-term investments 149
Accounts receivable 66 68 116 106 87
Accounts receivable, related party 113 38 41 56 61
Notes receivable 37 35
Other receivables 10 35 12 16 16
Total quick assets 2,240 2,857 1,135 1,715 2,701
 
Current liabilities 4,985 5,291 3,544 3,076 3,769
Liquidity Ratio
Quick ratio1 0.45 0.54 0.32 0.56 0.72
Benchmarks
Quick Ratio, Competitors2
Coca-Cola Co.
Mondelēz International Inc.
PepsiCo Inc.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 2016 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,240 ÷ 4,985 = 0.45

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. Reynolds American Inc. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.

Cash Ratio

Reynolds American Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,051 2,567 966 1,500 2,502
Short-term investments 149
Total cash assets 2,051 2,716 966 1,500 2,502
 
Current liabilities 4,985 5,291 3,544 3,076 3,769
Liquidity Ratio
Cash ratio1 0.41 0.51 0.27 0.49 0.66
Benchmarks
Cash Ratio, Competitors2
Coca-Cola Co.
Mondelēz International Inc.
PepsiCo Inc.

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 2016 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,051 ÷ 4,985 = 0.41

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. Reynolds American Inc. cash ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016.