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British American TobaccoCHIX:BATSL +3.09%71 Cash Ratio is 0.24 as of Dec. 2025, which is 41% above its 10-year median of 0.17. GuruFocus rates CHIX:BATSL with a GF Score™ of 71/100 and a GF Value™ of £27.87 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 46 Tobacco Products companies, British American Tobacco ranks worse than 65.22% on this metric.
British American Tobacco has a Cash Ratio of 0.24. 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 British American Tobacco's Cash Ratio or its related term are showing as below:
CHIX:BATSl'
s Cash Ratio Range Over the Past 10 Years
Min: 0.11 Med: 0.17 Max: 0.24
Current: 0.24
During the past 13 years, British American Tobacco's highest Cash Ratio was 0.24. The lowest was 0.11. And the median was 0.17.
CHIX:BATSl's Cash Ratio is ranked worse than 65.22% of 46
companies
in the Tobacco Products industry
Industry Median: 0.46
vs CHIX:BATSl: 0.24
British American Tobacco (CHIX:BATSl) 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.
British American Tobacco Cash Ratio Related Terms
British American Tobacco Cash Ratio Historical Data
* 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.
For the Tobacco subindustry, British American Tobacco'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.
British American Tobacco Cash Ratio vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Cash Ratio distribution charts can be found below:
* The bar in red indicates where British American Tobacco's Cash Ratio falls into.
* 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.
British American Tobacco (CHIX:BATSL) has a Cash Ratio of 0.24 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on British American Tobacco and its competitors. This is 41% above median its historical median of 0.17. Over the past decade, British American Tobacco's Cash Ratio has ranged from 0.11 to 0.24. According to the industry distribution chart, British American Tobacco ranks #30 out of 46 companies in the Tobacco Products industry, placing it in the top 65.2%.
Is British American Tobacco's Cash Ratio too high?
British American Tobacco's current Cash Ratio of 0.24 is 41% above median its 10-year median of 0.17. Over the past 10 years, this metric has ranged from a low of 0.11 to a high of 0.24. The Tobacco Products industry median Cash Ratio is 0.46. British American Tobacco's value of 0.24 is 47.8% below this industry median. Based on the distribution chart, British American Tobacco ranks #30 out of 46 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, British American Tobacco has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco's Cash Ratio compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco ranks #30 out of 46 companies for Cash Ratio. This places British American Tobacco in the lower half of its industry. The industry median Cash Ratio is 0.46. British American Tobacco's value of 0.24 is 47.8% below this benchmark. Historically, British American Tobacco's own Cash Ratio has ranged from 0.11 to 0.24 over the past decade. While the company's 10-year median is 0.17 vs. the industry median of 0.46, British American Tobacco has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Tobacco Products company?
The median Cash Ratio among Tobacco Products companies is 0.46, based on 46 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. British American Tobacco's current Cash Ratio of 0.24 is 47.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on British American Tobacco and its competitors. For the Tobacco Products industry, the median Cash Ratio is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco's current Cash Ratio is 0.24, which is 41% above median its own 10-year median of 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco (CHIX:BATSL) is currently considered Significantly Overvalued. The stock's GF Value™ is £27.87, compared to a current price of £46.59 — trading 67.2% above its estimated fair value. The current Cash Ratio is 0.24, which is 41% above median its 10-year median of 0.17 and 47.8% below the Tobacco Products industry median of 0.46. British American Tobacco's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For British American Tobacco (CHIX:BATSL), the current Cash Ratio is 0.24 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is British American Tobacco (CHIX:BATSL) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco stock appears to be overvalued.
The current stock price of £46.59 is trading 67.2% above its estimated GF Value™ of £27.87.
GuruFocus considers British American Tobacco to be Significantly Overvalued.
Key valuation signals for CHIX:BATSL:
Cash Ratio: 0.24 (41% above median its 10-year median of 0.17)
GF Value™: £27.87 vs. price of £46.59 (67.2% above fair value)
Industry Position: 47.8% below the Tobacco Products median (#30 of 46)
No single metric tells the full story. See the CHIX:BATSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The third-largest tobacco company by volume, British American Tobacco sold 465 billion cigarettes in 2025. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the US. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 22.9% stake in ITC limited, the largest Indian cigarette company.
71GF Score
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