Quick Ratio
Higher than 50% of Consumer Defensive sector peers
Updated 440h ago
Sector Performance
50th percentilePM
0.40x
Sector Median
0.40x
Sector Avg
0.46x
Deep Analysis
The quick ratio measures a company's ability to pay its short-term liabilities using its most liquid assets (cash, marketable securities, and receivables); a ratio of 0.40x indicates Philip Morris has only $0.40 in liquid assets for every $1 of current liabilities.
This matches the Consumer Defensive sector median of exactly 0.40x, placing the firm at the 50th percentile among its peers — squarely average. There is no trend data available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical values beyond the current 0.40x are provided. With a flat level at the sector median and no identifiable direction, the metric implies neither improvement nor deterioration in short-term liquidity risk. This neutral position reinforces the overall NEUTRAL verdict, as the quick ratio does not introduce a clear risk or opportunity that would shift the assessment.
Frequently Asked Questions
What does the Quick Ratio tell investors about PM?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does PM's Quick Ratio compare to its sector?
PM's Quick Ratio of 0.40x compares to a Consumer Defensive sector median of 0.40x, placing it in the 50th percentile.
Who are PM's closest peers by Quick Ratio?
The closest Consumer Defensive peers by Quick Ratio include: MO (0.45x), COTY (0.35x), BUD (0.46x), CPB (0.32x), PG (0.49x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.40x
Sector Median
0.40x
Sector Avg
0.46x
How PM's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.