British American Tobacco (British American Tobacco) Quick Ratio

: 0.59 (As of Dec. 2023)

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The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. British American Tobacco's quick ratio for the quarter that ended in Dec. 2023 was 0.59.

British American Tobacco has a quick ratio of 0.59. It indicates that the company cannot currently fully pay back its current liabilities.

The historical rank and industry rank for British American Tobacco's Quick Ratio or its related term are showing as below:

BTI' s Quick Ratio Range Over the Past 10 Years
Min: 0.38 Med: 0.54 Max: 0.62
Current: 0.59

During the past 13 years, British American Tobacco's highest Quick Ratio was 0.62. The lowest was 0.38. And the median was 0.54.

BTI's Quick Ratio is ranked worse than
71.15% of 52 companies
in the Tobacco Products industry
Industry Median: 0.825 vs BTI: 0.59

British American Tobacco Quick Ratio Historical Data

The historical data trend for British American Tobacco's Quick 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.

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British American Tobacco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Quick Ratio

0.38

0.49

0.50

0.55

0.59

British American Tobacco Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Quick Ratio																0.50	0.52	0.55	0.58	0.59

Competitive Comparison

For the Tobacco subindustry, British American Tobacco's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Quick Ratio distribution charts can be found below:

* The bar in red indicates where British American Tobacco's Quick Ratio falls into.

British American Tobacco Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

British American Tobacco's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Quick Ratio (A: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(17956.962	-	6250.633)	/	19839.241
	=	0.59

British American Tobacco's Quick Ratio for the quarter that ended in Dec. 2023 is calculated as

Quick Ratio (Q: Dec. 2023 )	=	(Total Current Assets	-	Total Inventories)	/	Total Current Liabilities
	=	(17956.962	-	6250.633)	/	19839.241
	=	0.59

British American Tobacco (NYSE:BTI) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.

British American Tobacco Quick Ratio Related Terms

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British American Tobacco (British American Tobacco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » British American Tobacco PLC (NYSE:BTI) » Definitions » Quick Ratio

Comparable Companies

Traded in Other Exchanges

BTI:South Africa BTAFF:USA BATSl:UK BATS:UK BMTA:Germany BMT:Germany BMT:Germany BMT:Germany BMTA:Germany BMT:Germany B1TI34:Brazil

Address

Globe House, 4 Temple Place, London, GBR, WC2R 2PG

Website

https://www.bat.com

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed Global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, primarily its Vuse brand, heated tobacco, with Glo, as well Velo modern oral tobacco products. The company holds 29% of ITC Limited, the leading Indian cigarette-maker.