The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Philip Morris International's current ratio for the quarter that ended in Mar. 2026 was 0.98.
Philip Morris International has a current ratio of 0.98. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Philip Morris International has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Philip Morris International's Current Ratio or its related term are showing as below:
MEX:PM'
s Current Ratio Range Over the Past 10 Years
Min: 0.72 Med: 0.99 Max: 1.35
Current: 0.98
During the past 13 years, Philip Morris International's highest Current Ratio was 1.35. The lowest was 0.72. And the median was 0.99.
MEX:PM's Current Ratio is ranked worse than 75.51% of 49
companies
in the Tobacco Products industry
Industry Median: 1.68
vs MEX:PM: 0.98
Philip Morris International (MEX:PM) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Philip Morris International Current Ratio Related Terms
Philip Morris International Current 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, Philip Morris International's Current Ratio, along with its competitors' market caps and Current 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.
Philip Morris International Current Ratio vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Current Ratio distribution charts can be found below:
* The bar in red indicates where Philip Morris International's Current 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.
Philip Morris International (MEX:PM) has a Current Ratio of 0.98 as of Mar. 2026. This is near median its historical median of 0.99. Over the past decade, Philip Morris International's Current Ratio has ranged from 0.72 to 1.35. According to the industry distribution chart, Philip Morris International ranks #37 out of 49 companies in the Tobacco Products industry, placing it in the top 75.5%.
Is Philip Morris International's Current Ratio too high?
Philip Morris International's current Current Ratio of 0.98 is near median its 10-year median of 0.99. Over the past 10 years, this metric has ranged from a low of 0.72 to a high of 1.35. The Tobacco Products industry median Current Ratio is 1.68. Philip Morris International's value of 0.98 is 41.7% below this industry median. Based on the distribution chart, Philip Morris International ranks #37 out of 49 companies in the Tobacco Products industry, which is in the bottom quartile relative to peers. Overall, Philip Morris International has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Philip Morris International's Current Ratio compare to MO and TPB?
According to the Tobacco Products industry distribution chart, Philip Morris International ranks #37 out of 49 companies for Current Ratio. This places Philip Morris International in the lower half of its industry. The industry median Current Ratio is 1.68. Philip Morris International's value of 0.98 is 41.7% below this benchmark. Historically, Philip Morris International's own Current Ratio has ranged from 0.72 to 1.35 over the past decade. While the company's 10-year median is 0.99 vs. the industry median of 1.68, Philip Morris International 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 Current Ratio for a Tobacco Products company?
The median Current Ratio among Tobacco Products companies is 1.68, based on 49 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Philip Morris International's current Current Ratio of 0.98 is 41.7% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Tobacco Products industry, the median Current Ratio is 1.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Philip Morris International's current Current Ratio is 0.98, which is near median its own 10-year median of 0.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Philip Morris International stock overvalued right now?
Based on GuruFocus' analysis, Philip Morris International (MEX:PM) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN2,495.54, compared to a current price of MXN3,123.00 — trading 25.1% above its estimated fair value. The current Current Ratio is 0.98, which is near median its 10-year median of 0.99 and 41.7% below the Tobacco Products industry median of 1.68. Philip Morris International's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Philip Morris International (MEX:PM), the current Current Ratio is 0.98 as of Mar. 2026. 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 Philip Morris International (MEX:PM) Overvalued in 2026?
Based on GuruFocus' analysis, Philip Morris International stock appears to be overvalued.
The current stock price of MXN3,123.00 is trading 25.1% above its estimated GF Value™ of MXN2,495.54.
GuruFocus considers Philip Morris International to be Modestly Overvalued.
Key valuation signals for MEX:PM:
Current Ratio: 0.98 (near median its 10-year median of 0.99)
GF Value™: MXN2,495.54 vs. price of MXN3,123.00 (25.1% above fair value)
Industry Position: 41.7% below the Tobacco Products median (#37 of 49)
No single metric tells the full story. See the MEX:PM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heat sticks, vapes, and oral nicotine offerings, primarily outside of the US. With the 2023 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI is not only dominant in smokable products but also has the Iqos and Zyn brands, which respectively dominate heated tobacco and nicotine pouches in most markets. It also owns the Veev brand in vapes.
75GF Score
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