Philip Morris International Inc (PM)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	1.59	1.58	1.56	1.52	1.38	1.48	1.42	1.20	1.26	1.75	1.62	1.37	1.33	1.37	1.27	1.21	1.15	1.42	1.31	1.35
Receivables turnover	7.97	7.00	6.90	6.83	12.30	15.53	19.03	21.80	21.18	21.10	20.98	22.78	26.08	19.26	17.58	18.75	21.13	19.50	18.67	23.64
Payables turnover	3.82	4.22	4.07	4.16	3.59	4.03	3.70	3.25	3.05	3.75	3.72	3.71	3.48	3.99	4.20	4.31	3.96	5.37	5.91	5.89
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	32.27	32.90	46.45	45.36	44.17	328.26

Based on the provided data, the analysis of Philip Morris International Inc's activity ratios reveals the following insights:

1. Inventory Turnover:
The inventory turnover ratio for Philip Morris International Inc fluctuated over the periods, ranging from 1.15 to 1.75. The company's ability to turn over its inventory improved towards the end of the period, reaching a peak of 1.75 by September 30, 2022. This indicates that the company was more efficient in selling its inventory during that time.

2. Receivables Turnover:
The receivables turnover ratio indicates how efficiently the company collects its outstanding receivables. Philip Morris International Inc's receivables turnover ratio declined significantly from 26.08 on December 31, 2021, to 7.97 on December 31, 2024. This suggests that the company may have faced challenges in collecting its receivables efficiently during the later periods.

3. Payables Turnover:
The payables turnover ratio for Philip Morris International Inc shows the rate at which the company pays its suppliers. The ratio ranged from 3.05 to 5.91 over the periods, indicating fluctuations in the company's payment patterns. The ratio decreased towards the end of the period, indicating a longer payment cycle.

4. Working Capital Turnover:
The working capital turnover ratio provides insights into how effectively the company utilizes its working capital to generate sales. The data shows a significant decrease in this ratio over time, with values falling below 50 by June 30, 2020, and becoming unavailable from September 30, 2021, onwards. This suggests a potential decrease in the company's efficiency in utilizing its working capital for generating revenues.

In conclusion, the analysis of Philip Morris International Inc's activity ratios highlights fluctuations in inventory turnover, declining efficiency in collecting receivables, changing patterns in payables turnover, and a potential decrease in the effectiveness of utilizing working capital. These trends can indicate shifts in the company's operational efficiency and financial management strategies over the analyzed periods.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	228.85	230.42	234.42	239.68	264.05	247.20	257.72	305.34	290.13	208.28	225.76	266.87	274.21	265.81	287.33	301.16	318.19	257.60	278.18	270.61
Days of sales outstanding (DSO)	days	45.78	52.14	52.89	53.43	29.68	23.50	19.18	16.75	17.23	17.30	17.40	16.03	13.99	18.95	20.76	19.47	17.27	18.72	19.55	15.44
Number of days of payables	days	95.67	86.48	89.73	87.70	101.54	90.55	98.56	112.45	119.62	97.31	98.04	98.43	104.75	91.39	86.96	84.71	92.23	68.03	61.76	62.02

Philip Morris International Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the period, ranging from 208.28 days to 318.19 days. The decreasing trend from 2022 to 2024 indicates the company has been more efficient in managing its inventory levels.

The Days of Sales Outstanding (DSO) for Philip Morris International Inc varied from 13.99 days to 53.43 days during the period. The significant spike in DSO in the last two quarters of 2023 and the first two quarters of 2024 may suggest potential issues with collections or sales on credit.

In terms of the Number of Days of Payables, Philip Morris International Inc experienced changes from 61.76 days to 119.62 days across the given period. The increasing trend up to 2023 followed by a slight decrease in 2024 indicates a potential extension in payment terms or negotiation with suppliers.

Overall, the company's activity ratios reflect fluctuations in its efficiency in managing inventory, collecting receivables, and paying liabilities over the period.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	5.19	4.81	4.86	4.79	7.29	10.80	13.64	17.04	17.50	20.69	19.56	19.38	19.19	15.53	15.44	14.90	13.70	14.26	14.17	14.89
Total asset turnover	0.60	0.54	0.54	0.53	0.83	1.18	1.54	1.86	1.87	2.85	2.85	2.79	2.82	2.26	2.27	2.23	1.95	2.23	2.24	2.43

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how effectively a company is using its fixed assets to generate revenue. A higher ratio indicates better efficiency in utilizing fixed assets. Philip Morris International Inc's fixed asset turnover has generally shown an increasing trend over the years, peaking at 20.69 during September 30, 2022. However, it decreased to 5.19 by the end of December 31, 2024, possibly indicating a decline in the efficiency of utilizing fixed assets to generate revenue.

2. Total Asset Turnover: Total asset turnover ratio helps assess how efficiently a company is generating sales from its total assets. A higher ratio signifies better asset utilization to generate revenue. Philip Morris International Inc's total asset turnover ratio fluctuated over the years, reaching a peak of 2.85 during June 30, 2022. However, it declined significantly to 0.60 by December 31, 2024, suggesting a potential inefficiency in utilizing total assets to generate sales.

Overall, the analysis of Philip Morris International Inc's long-term activity ratios suggests fluctuations in asset utilization efficiency over the years, which may warrant further investigation into the company's operational performance and strategies.