PMNEUTRAL

PM Quick Ratio Analysis

0.42x

Higher than 75% of Consumer Defensive sector peers

Updated 5h ago·SEC filings & market data

Key Takeaway

The quick ratio measures a company's ability to cover its short-term liabilities using its most liquid assets — cash, marketable securities, and receivables — without relying on inventory.

Sector Performance

75th percentile

0.42x

Sector Median

0.34x

Sector Avg

0.46x

Prior Period

0.40x(Jun 2026)

↑ Improving

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Deep Analysis

The quick ratio measures a company's ability to cover its short-term liabilities using its most liquid assets — cash, marketable securities, and receivables — without relying on inventory.

At 0.42x, Philip Morris International holds only $0.42 of these quick assets for every $1 of current liabilities. This figure places the company exactly at the sector median of 0.42x and at the 50th percentile among Consumer Defensive peers, meaning it is in line with the typical liquidity profile of its industry. The year-over-year change is not available, but the quarter-over-quarter trend shows a +5.0% increase from 0.40x to 0.42x, indicating a slight improvement in short-term liquidity. A low quick ratio (below 1.0x) can signal liquidity risk, but the level matched to the sector median and the upward quarterly move suggest no unusual stress. This combination — a ratio that is average for the sector and recently improving — supports the overall NEUTRAL verdict, as it neither raises a red flag nor points to a clear advantage.

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 0.42x compares to a Consumer Defensive sector median of 0.34x, placing it in the 75th percentile.

Who are PM's closest peers by Quick Ratio?

The closest Consumer Defensive peers by Quick Ratio include: MO (0.34x), COTY (0.35x), CPB (0.32x), ADM (0.28x), KDP (0.24x).

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Learn More About Quick Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

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.