Philip Morris International Inc (PM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.90% | 17.66% | 18.38% | 17.83% | 17.46% |
| Operating profit margin | 34.18% | 10.62% | 11.16% | 10.88% | 9.53% |
| Pretax margin | 30.03% | 9.79% | 10.13% | 9.73% | 8.58% |
| Net profit margin | 23.11% | 7.85% | 7.83% | 7.51% | 6.50% |
Philip Morris International Inc has seen a decline in its profitability ratios over the past five years. The gross profit margin has decreased steadily from 68.06% in 2021 to 63.35% in 2023. This indicates a reduction in the percentage of sales revenue retained as gross profit after deducting the cost of goods sold.
Similarly, the operating profit margin has also experienced a downward trend, going from 41.32% in 2021 to 34.74% in 2023. This implies that the company's operating expenses as a percentage of sales revenue have increased, leading to lower operating profitability.
The pretax margin has followed a similar pattern, declining from 39.42% in 2021 to 30.16% in 2023. This suggests that the company's pre-tax earnings as a percentage of sales have decreased over the years.
Lastly, the net profit margin has also decreased from 28.92% in 2021 to 22.15% in 2023. This indicates a reduction in the percentage of sales revenue retained as net profit after accounting for all expenses and taxes.
Overall, the profitability ratios of Philip Morris International Inc have displayed a negative trend, signaling a potential decline in the company's profitability over the past five years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.70% | 19.85% | 31.42% | 26.04% | 24.56% |
| Return on assets (ROA) | 11.96% | 14.67% | 22.06% | 17.98% | 16.76% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Based on the profitability ratios of Philip Morris International Inc from 2019 to 2023, several insightful trends can be observed. The Operating return on assets (Operating ROA) has fluctuated during this period, with a peak of 31.42% in 2021 and a low of 18.71% in 2023. This indicates the company's ability to generate profits from its assets managed by operations. Return on assets (ROA) has also varied, ranging from 16.72% in 2019 to 22.00% in 2021, showing the overall profitability of the company's assets.
The Return on total capital ratio has shown significant fluctuations, with a high of 74.15% in 2021 and a low of 33.74% in 2023. This ratio reflects the efficiency of the company in generating profits from both equity and debt capital invested. However, it is important to note that there is missing data for the Return on equity (ROE) ratio, which would have provided insights into the return generated from shareholders' equity.
Overall, the profitability ratios of Philip Morris International Inc demonstrate its ability to generate profits from its assets and capital investments, albeit with some fluctuations over the years. To gain a more comprehensive understanding of the company's financial performance, further analysis incorporating other financial metrics and industry benchmarks would be beneficial.