12-21-2021, 09:53 AM
Hmm. Looking at annual reports for the past 5 or 6 years, it looks like MO is not weathering this storm from a big cash pile. Cash and equivalents, and total current assets have stayed pretty static in the $4 to 7 billion range from 2015 to present. That's not enough to meet the dividend commitment, much less along with other costs. The number that does seem to be changing a lot is debt.
Long-term debt was 12 to 14 billion in 2015/2016, but up to 27 billion in the 2020 report, though it does seem to be down a hair in the Q3 2021 report.
Given MO's revenue stream and the current interest rate environment, I don't think any of that is horrifying. But I certainly wouldn't characterize it as safe, sustainable, or healthy.
I guess I'm not inspired to jump over to my brokerage to sell. But I'll be looking at Q4 and the next AR incredibly closely.
Long-term debt was 12 to 14 billion in 2015/2016, but up to 27 billion in the 2020 report, though it does seem to be down a hair in the Q3 2021 report.
Given MO's revenue stream and the current interest rate environment, I don't think any of that is horrifying. But I certainly wouldn't characterize it as safe, sustainable, or healthy.
I guess I'm not inspired to jump over to my brokerage to sell. But I'll be looking at Q4 and the next AR incredibly closely.