Philip Morris International Inc (PM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.33% | 65.90% | 17.66% | 18.38% | 17.83% |
| Operating profit margin | 35.67% | 34.18% | 10.62% | 11.16% | 10.88% |
| Pretax margin | 26.81% | 30.03% | 9.79% | 10.13% | 9.73% |
| Net profit margin | 18.78% | 23.11% | 7.85% | 7.83% | 7.51% |
Philip Morris International Inc has shown a stable trend in its profitability ratios over the years.
1. Gross Profit Margin: The company's gross profit margin has improved slightly from 17.83% in 2020 to 18.38% in 2021, then declined to 17.66% in 2022 before experiencing a significant increase to 65.90% in 2023. In 2024, the gross profit margin decreased slightly to 65.33%. This indicates that the company has been able to maintain a healthy level of gross profit relative to its revenue, with a notable spike in 2023.
2. Operating Profit Margin: Philip Morris International's operating profit margin has also followed a similar trend, increasing from 10.88% in 2020 to 11.16% in 2021, dropping to 10.62% in 2022, and then significantly rising to 34.18% in 2023 and further to 35.67% in 2024. This suggests that the company has been successful in improving its operational efficiency and managing operating expenses effectively.
3. Pretax Margin: The pretax margin of the company has shown a positive trend, increasing from 9.73% in 2020 to 10.13% in 2021, slightly decreasing to 9.79% in 2022, and then experiencing a substantial boost to 30.03% in 2023. However, in 2024, there was a decrease in the pretax margin to 26.81%. This indicates that Philip Morris International has been able to generate higher profits before taxes, particularly in 2023.
4. Net Profit Margin: The net profit margin of the company has also shown a positive trend, improving from 7.51% in 2020 to 7.83% in 2021, then reaching 7.85% in 2022. The net profit margin saw a significant leap to 23.11% in 2023, indicating a strong bottom-line performance. However, in 2024, there was a decline in the net profit margin to 18.78%. This suggests that Philip Morris International has been able to generate healthy profits relative to its revenue, with a notable peak in 2023.
Overall, Philip Morris International Inc's profitability ratios reflect a generally positive performance, with significant improvements in profitability metrics in 2023, although there were slight declines in some ratios in 2024.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.69% | 17.70% | 19.85% | 31.42% | 26.04% |
| Return on assets (ROA) | 11.42% | 11.96% | 14.67% | 22.06% | 17.98% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Based on the provided data, Philip Morris International Inc's profitability ratios show fluctuations over the years:
1. Operating Return on Assets (Operating ROA)
- The Operating ROA for Philip Morris International Inc increased from 26.04% in December 2020 to 31.42% in December 2021, indicating an improvement in the company's ability to generate operating profits from its assets. However, it then decreased to 19.85% in December 2022 but recovered slightly to 21.69% in December 2024.
- Overall, the Operating ROA has shown some volatility but remains at relatively high levels, indicating efficient use of assets to generate operating income.
2. Return on Assets (ROA)
- The ROA of Philip Morris International Inc followed a similar trend to Operating ROA, increasing from 17.98% in December 2020 to 22.06% in December 2021 before declining to 11.42% in December 2024.
- The fluctuations in ROA suggest changes in the company's profitability in relation to its total assets, with a notable decrease by the end of 2024.
3. Return on Total Capital
- The data provided does not include Return on Total Capital for Philip Morris International Inc for the years specified, indicating that the information is not available or may not be applicable for this company.
4. Return on Equity (ROE)
- Similar to Return on Total Capital, Return on Equity data is not provided for Philip Morris International Inc for the years specified, suggesting that information on profitability related to shareholders' equity is not available.
In summary, based on the available data, Philip Morris International Inc has shown fluctuations in its profitability ratios over the years, with Operating ROA and ROA demonstrating some volatility, while information on Return on Total Capital and Return on Equity is not provided. Further analysis of the company's financial performance and underlying factors affecting profitability would be necessary to fully assess its overall financial health.