PMNEUTRAL

PM Current Ratio Analysis

0.98x

Higher than 50% of Consumer Defensive sector peers

Updated 5h ago·SEC filings & market data

Key Takeaway

With a current ratio of 0.98x, Philip Morris has current assets that nearly equal its current liabilities, meaning it can just about cover short-term obligations like payables and debt due within a year.

Sector Performance

50th percentile

PM

0.98x

Sector Median

0.98x

Sector Avg

1.15x

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Deep Analysis

With a current ratio of 0.98x, Philip Morris has current assets that nearly equal its current liabilities, meaning it can just about cover short-term obligations like payables and debt due within a year.

This places the company exactly at the sector median of 0.98x and at the 50th percentile among its Consumer Defensive peers, indicating no unusual liquidity advantage or shortfall relative to competitors. The trend data is not available: the year-over-year change is N/A, and the quarter-over-quarter change is N/A, so no directional movement can be inferred from this metric. Because the level sits precisely at the sector midpoint, the risk profile is balanced — there is no immediate liquidity danger, but also no extra cushion for an unexpected cash crunch. Given the absence of trend information, the current ratio neither adds nor detracts from the investment case. This metric supports the overall NEUTRAL verdict, as the company’s liquidity position is ordinary for its industry without signaling any material strength or weakness.

Frequently Asked Questions

What does the Current Ratio tell investors about PM?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does PM's Current Ratio compare to its sector?

PM's Current Ratio of 0.98x compares to a Consumer Defensive sector median of 0.98x, placing it in the 50th percentile.

Who are PM's closest peers by Current Ratio?

The closest Consumer Defensive peers by Current Ratio include: ABEV (1.03x), CPB (0.87x), COTY (0.82x), WMT (0.77x), ADM (1.31x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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PM

0.98x

Sector Median

0.98x

Sector Avg

1.15x

How PM's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.