Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Reynolds American Inc., liquidity ratios
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Current ratio | 0.85 | 1.17 | 0.94 | 1.19 | 1.28 | |
| Quick ratio | 0.45 | 0.54 | 0.32 | 0.56 | 0.72 | |
| Cash ratio | 0.41 | 0.51 | 0.27 | 0.49 | 0.66 |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Reynolds American Inc. current ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Reynolds American Inc. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Reynolds American Inc. cash ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |
Current Ratio
Reynolds American Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 4,238) | 6,187) | 3,323) | 3,655) | 4,812) | |
| Current liabilities | 4,985) | 5,291) | 3,544) | 3,076) | 3,769) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 0.85 | 1.17 | 0.94 | 1.19 | 1.28 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Coca-Cola Co. | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,238 ÷ 4,985 = 0.85
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Reynolds American Inc. current ratio improved from 2014 to 2015 but then deteriorated significantly from 2015 to 2016. |
Quick Ratio
Reynolds American Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,051) | 2,567) | 966) | 1,500) | 2,502) | |
| Short-term investments | —) | 149) | —) | —) | —) | |
| Accounts receivable | 66) | 68) | 116) | 106) | 87) | |
| Accounts receivable, related party | 113) | 38) | 41) | 56) | 61) | |
| Notes receivable | —) | —) | —) | 37) | 35) | |
| Other receivables | 10) | 35) | 12) | 16) | 16) | |
| Total quick assets | 2,240) | 2,857) | 1,135) | 1,715) | 2,701) | |
| Current liabilities | 4,985) | 5,291) | 3,544) | 3,076) | 3,769) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 0.45 | 0.54 | 0.32 | 0.56 | 0.72 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Coca-Cola Co. | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,240 ÷ 4,985 = 0.45
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Reynolds American Inc. quick ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |
Cash Ratio
Reynolds American Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 2,051) | 2,567) | 966) | 1,500) | 2,502) | |
| Short-term investments | —) | 149) | —) | —) | —) | |
| Total cash assets | 2,051) | 2,716) | 966) | 1,500) | 2,502) | |
| Current liabilities | 4,985) | 5,291) | 3,544) | 3,076) | 3,769) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.41 | 0.51 | 0.27 | 0.49 | 0.66 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Coca-Cola Co. | — | — | — | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Philip Morris International Inc. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 2016 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,051 ÷ 4,985 = 0.41
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Reynolds American Inc. cash ratio improved from 2014 to 2015 but then slightly deteriorated from 2015 to 2016. |