Philip Morris International Inc (PM)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 33,808,000 | 115,302,000 | 116,285,000 | 107,266,000 | 110,502,000 |
| Total current assets | US$ in thousands | 19,755,000 | 19,619,000 | 17,717,000 | 21,492,000 | 20,514,000 |
| Total current liabilities | US$ in thousands | 26,383,000 | 27,336,000 | 19,255,000 | 19,615,000 | 18,833,000 |
| Working capital turnover | — | — | — | 57.15 | 65.74 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $33,808,000K ÷ ($19,755,000K – $26,383,000K)
= —
Based on the provided data for Philip Morris International Inc for the years 2019 to 2021, the working capital turnover ratio showed a decreasing trend. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate revenue.
The working capital turnover ratio was 17.73 in 2019, indicating that for every dollar of working capital, the company generated $17.73 of revenue. However, this ratio decreased to 15.29 in 2020 and data for the subsequent years is not available, implying a potential declining efficiency in working capital management.
A decreasing working capital turnover ratio could suggest that the company is not efficiently using its current assets to support sales growth. It may also indicate issues with inventory management or collection of receivables. Further analysis and comparison with industry averages or competitor ratios would provide a more comprehensive understanding of Philip Morris International Inc's working capital efficiency.
Peer comparison
Dec 31, 2023