Philip Morris International Inc (PM)
Total 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 |
| Total assets | US$ in thousands | 61,784,000 | 65,304,000 | 61,681,000 | 41,290,000 | 44,815,000 |
| Total asset turnover | 0.61 | 0.52 | 1.87 | 2.82 | 2.39 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $37,576,000K ÷ $61,784,000K
= 0.61
Total asset turnover measures how efficiently a company is using its assets to generate revenue. In the case of Philip Morris International Inc, we observe fluctuations in its total asset turnover ratio over the years.
In December 31, 2020, the total asset turnover was 2.39, indicating that for every dollar of assets, the company generated $2.39 of revenue. This ratio improved to 2.82 by December 31, 2021, suggesting increased efficiency in asset utilization.
However, there was a significant drop in the total asset turnover to 1.87 by December 31, 2022, which may raise concerns about the company's ability to generate revenue from its assets efficiently. This ratio further decreased to 0.52 by December 31, 2023, indicating a substantial decline in asset productivity.
Although there was a slight improvement to 0.61 by December 31, 2024, the total asset turnover remained relatively low compared to previous years. Overall, the trend in total asset turnover for Philip Morris International Inc suggests fluctuations in asset utilization efficiency over the years, which may require further investigation to understand the underlying reasons and implications for the company's performance.
Peer comparison
Dec 31, 2024