MO Quick Ratio Analysis

Altria’s quick ratio of 0.45x means the company has only $0.45 in liquid assets (like cash and receivables) for every $1 of current liabilities due within a year—a thin cushion.

This ratio sits above the Consumer Defensive sector median of 0.40x and places Altria in the 58th percentile among peers, indicating slightly better short-term liquidity than most of its sector. Over the last eight quarters the trend has been decreasing, though the quarter-over-quarter change is +7.1% (from 0.42x to 0.45x); the year-over-year change is not available. A quick ratio well below 1.0x already signals elevated liquidity risk, and the longer-term downward trend (despite the recent quarterly uptick) reinforces that risk, offering no clear improvement in the company’s ability to cover short-term obligations without selling inventory. The combination of a low absolute level and a persistent decreasing trend suggests higher financial vulnerability, which works against a bullish outlook. This metric directly supports the overall CAUTIOUS verdict, as it confirms a weak liquidity position that adds to concerns about the stock.

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