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British American Tobacco Quick Ratio

: 0.43 (As of Jun. 2021)
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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 Jun. 2021 was 0.43.

British American Tobacco has a quick ratio of 0.43. 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:

NYSE:BTI' s Quick Ratio Range Over the Past 10 Years
Min: 0.37   Med: 0.62   Max: 0.85
Current: 0.43

0.37
0.85

During the past 13 years, British American Tobacco's highest Quick Ratio was 0.85. The lowest was 0.37. And the median was 0.62.

NYSE:BTI's Quick Ratio is ranked lower than
60% of the 10 Companies
in the Tobacco Products industry.

( Industry Median: 0.80 vs. NYSE:BTI: 0.43 )

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.

* Premium members only.

British American Tobacco Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Quick Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.55 0.52 0.41 0.38 0.49

British American Tobacco Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
Quick Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.39 0.38 0.53 0.49 0.43

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. 2020 is calculated as

Quick Ratio (A: Dec. 2020 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(18295.698924731-8061.8279569892)/20803.76344086
=0.49

British American Tobacco's Quick Ratio for the quarter that ended in Jun. 2021 is calculated as

Quick Ratio (Q: Jun. 2021 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(20127.62973352-8987.3772791024)/25831.697054698
=0.43

* 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  (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 Business Description

British American Tobacco logo
Industry
Address
Globe House, 4 Temple Place, London, GBR, WC2R 2PG
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 volumes. 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, including its Vype brand, heated tobacco, with Glo, as well as roll- your-own and smokeless tobacco products. The company holds 31% of ITC Limited, the leading Indian cigarette-maker.

British American Tobacco Headlines

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