Philip Morris International Inc (PM)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,545,000 | 15,207,000 | 12,398,000 | 12,166,000 | 11,433,000 |
| Payables | US$ in thousands | 3,952,000 | 4,143,000 | 4,076,000 | 3,331,000 | 2,780,000 |
| Payables turnover | 3.93 | 3.67 | 3.04 | 3.65 | 4.11 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $15,545,000K ÷ $3,952,000K
= 3.93
The payables turnover ratio for Philip Morris International Inc has shown varying trends over the past five years. As of December 31, 2020, the payables turnover ratio was 4.11, indicating that the company was able to turnover its accounts payables approximately 4.11 times during the year.
However, there was a slight decrease in the payables turnover ratio in the following year, as of December 31, 2021, to 3.65. This suggests a longer period for the company to pay off its suppliers' invoices, which could be due to changing payment terms or other factors affecting the company's liquidity.
In the subsequent year, as of December 31, 2022, the payables turnover ratio further declined to 3.04, indicating a potential slowdown in the company's accounts payables management efficiency. This decline may raise concerns about the company's ability to negotiate favorable payment terms with its suppliers or manage its working capital effectively.
The company managed to improve its payables turnover ratio in the following year, as of December 31, 2023, to 3.67. This improvement suggests that the company may have taken steps to enhance its accounts payables management efficiency or strengthen its relationships with suppliers.
By the end of December 31, 2024, the payables turnover ratio increased further to 3.93, indicating a continued effort by the company to manage its payables effectively. Overall, fluctuations in the payables turnover ratio imply changes in the company's liquidity position, working capital management, and creditor relationships, which are essential aspects to monitor for stakeholders assessing the financial health of Philip Morris International Inc.
Peer comparison
Dec 31, 2024