Philip Morris International Inc (PM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,556,000 | 12,246,000 | 12,975,000 | 11,668,000 | 10,531,000 |
| Revenue | US$ in thousands | 33,808,000 | 115,302,000 | 116,285,000 | 107,266,000 | 110,502,000 |
| Operating profit margin | 34.18% | 10.62% | 11.16% | 10.88% | 9.53% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $11,556,000K ÷ $33,808,000K
= 34.18%
Philip Morris International Inc's operating profit margin has shown a declining trend over the past five years. The margin decreased from 35.33% in 2019 to 34.74% in 2023, indicating a slight weakening in the company's ability to generate profits from its core operations. This decline could be attributed to various factors such as increased operating expenses, pricing pressures, or changes in product mix. It is essential for the company to closely monitor and address the root causes of this trend to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2023
Company name
Symbol
Operating profit margin
Philip Morris International Inc
PM
34.18%
Altria Group
MO
49.15%
Vector Group Ltd
VGR
23.03%