Philip Morris International Inc (PM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 65,304,000 | 61,681,000 | 41,290,000 | 44,815,000 | 42,875,000 |
| Operating ROA | 17.70% | 19.85% | 31.42% | 26.04% | 24.56% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $11,556,000K ÷ $65,304,000K
= 17.70%
Philip Morris International Inc's operating return on assets (operating ROA) has demonstrated a downward trend over the past five years, starting at 24.56% in 2019 and reaching 18.71% in 2023. This indicates a decrease in the company's ability to generate profits from its operating assets. While the operating ROA was relatively high in 2021 at 31.42%, it has since declined.
A high operating ROA suggests that the company is effective in generating profits from its core business operations relative to its total assets. The decreasing trend in operating ROA may indicate that Philip Morris International Inc is facing challenges in optimizing its asset utilization and operational efficiency. Investors and stakeholders may want to closely monitor this trend to ensure the company's profitability and operational effectiveness.
Peer comparison
Dec 31, 2023