Altria Group has a Cash Ratio of 0.33. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Altria Group's Cash Ratio or its related term are showing as below:
BUE:MO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.06 Med: 0.39 Max: 0.62
Current: 0.33
During the past 13 years, Altria Group's highest Cash Ratio was 0.62. The lowest was 0.06. And the median was 0.39.
BUE:MO's Cash Ratio is ranked better than 51.02% of 49
companies
in the Tobacco Products industry
Industry Median: 0.3
vs BUE:MO: 0.33
Altria Group Cash Ratio Historical Data
The historical data trend for Altria Group's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Altria Group's Cash Ratio
For the Tobacco subindustry, Altria Group's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Altria Group's Cash Ratio Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Altria Group's Cash Ratio falls into.
Altria Group Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Altria Group's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Altria Group (BUE:MO) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Altria Group Cash Ratio Related Terms
Thank you for viewing the detailed overview of Altria Group's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Horizon Innovations and Helix Innovations. It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company's Marlboro brand is the leading cigarette brand in the U.S. with a 42% annual share in 2022. Altria holds a 42% stake in cannabis manufacturer Cronos, has acquired Njoy Holdings in 2023, and recently exited its strategic investment in Juul Labs.
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