Philip Morris International Inc (PM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 37,576,000 | 33,808,000 | 115,302,000 | 116,285,000 | 107,266,000 |
| Property, plant and equipment | US$ in thousands | 7,184,000 | 7,405,000 | 6,587,000 | 6,060,000 | 6,365,000 |
| Fixed asset turnover | 5.23 | 4.57 | 17.50 | 19.19 | 16.85 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $37,576,000K ÷ $7,184,000K
= 5.23
Fixed asset turnover is a financial ratio that measures a company's ability to generate net sales from its fixed assets. In the case of Philip Morris International Inc, the trend in fixed asset turnover over the past five years shows fluctuation:
- In 2020, the fixed asset turnover was 16.85, indicating that the company generated $16.85 in sales for every dollar of fixed assets.
- The ratio increased to 19.19 in 2021, suggesting an improvement in efficiency in utilizing fixed assets to generate revenue.
- However, in 2022, the fixed asset turnover decreased to 17.50, which could indicate a slight decrease in the efficiency of using fixed assets.
- The ratio saw a significant drop in 2023 to 4.57, which may indicate challenges in generating sales from fixed assets efficiently.
- In 2024, there was a slight improvement with a fixed asset turnover of 5.23, but it still remained below the levels seen in the earlier years.
Overall, the trend in Philip Morris International Inc's fixed asset turnover ratio shows some variability, with improvements in certain years and declines in others. It is important for the company to closely monitor and manage its fixed asset turnover to ensure efficient utilization of assets and maximize revenue generation.
Peer comparison
Dec 31, 2024