Philip Morris International Inc (PM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 65.86% | 65.63% | 65.93% | 66.35% | 41.26% | 29.09% | 21.77% | 17.47% | 17.66% | 17.85% | 18.13% | 18.22% | 18.38% | 22.26% | 22.17% | 22.20% | 21.94% | 21.94% | 21.90% | 21.73% |
| Operating profit margin | 35.95% | 35.86% | 36.10% | 34.39% | 21.40% | 15.59% | 11.73% | 10.10% | 10.62% | 10.57% | 10.93% | 11.03% | 11.16% | 13.74% | 13.79% | 13.90% | 13.38% | 12.89% | 12.34% | 12.39% |
| Pretax margin | 27.02% | 33.84% | 32.75% | 30.58% | 18.80% | 14.04% | 10.56% | 9.31% | 9.79% | 9.63% | 9.96% | 9.98% | 10.13% | 12.41% | 12.43% | 12.55% | 11.97% | 11.53% | 11.03% | 11.13% |
| Net profit margin | 18.93% | 27.05% | 24.93% | 23.08% | 14.47% | 10.78% | 8.44% | 7.53% | 7.85% | 7.53% | 7.79% | 7.75% | 7.83% | 9.55% | 9.62% | 9.75% | 9.24% | 8.80% | 8.31% | 8.42% |
The profitability ratios of Philip Morris International Inc have shown fluctuations over the quarters analyzed. The gross profit margin, which reflects the company's efficiency in generating sales after accounting for the cost of goods sold, started to decline from March 31, 2022, reaching its lowest point at 17.66% on December 31, 2022, before showing a significant improvement to 65.86% on December 31, 2024.
The operating profit margin, which indicates the company's ability to control its operating expenses, also experienced fluctuations. It peaked at 36.10% on June 30, 2024, after dropping to 10.57% on September 30, 2022.
The pretax margin, showing the company's profitability before taxes, followed a similar pattern of fluctuations as the operating profit margin. It hit its lowest point at 9.63% on September 30, 2022, before climbing to 33.84% on September 30, 2024.
Lastly, the net profit margin, which reveals the company's overall profitability after all expenses have been deducted, exhibited similar variations. It hit a low of 7.53% on December 31, 2022, before soaring to 27.05% on September 30, 2024.
Overall, these ratios show that Philip Morris International Inc faced challenges in maintaining consistent profitability during the period analyzed, with significant improvements in some quarters but also notable declines in others.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 21.69% | 19.48% | 19.38% | 18.17% | 17.70% | 18.42% | 18.09% | 18.82% | 19.85% | 30.13% | 31.14% | 30.74% | 31.42% | 31.10% | 31.27% | 30.96% | 26.04% | 28.80% | 27.61% | 30.06% |
| Return on assets (ROA) | 11.42% | 14.70% | 13.38% | 12.20% | 11.96% | 12.74% | 13.01% | 14.04% | 14.67% | 21.48% | 22.18% | 21.62% | 22.06% | 21.62% | 21.81% | 21.73% | 17.98% | 19.67% | 18.60% | 20.42% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, we can analyze the profitability ratios of Philip Morris International Inc as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA remained relatively stable within the range of 26% to 31% from March 2020 to June 2022, indicating efficient utilization of assets to generate operating income.
- However, there was a noticeable decline in Operating ROA from March 2023 onwards, with a significant drop to 17.70% by December 2023 and a gradual recovery to 21.69% by December 2024.
2. Return on Assets (ROA):
- The ROA also exhibited a similar trend to Operating ROA, showing a consistent performance between 18% to 22% up to June 2022.
- Subsequently, there was a considerable decrease in ROA, reaching a low of 11.42% by December 2024, indicating a decline in the company's ability to generate profits from its total assets.
3. Return on Total Capital:
- The data provided does not contain information on Return on Total Capital for any period, hence limiting the analysis of the company's efficiency in generating returns relative to its total invested capital.
4. Return on Equity (ROE):
- The absence of data on Return on Equity for the given periods hinders the assessment of the company's profitability in relation to its shareholders' equity, impacting the analysis of its financial performance from an equity perspective.
In conclusion, while the Operating ROA and ROA of Philip Morris International Inc demonstrated consistent performance until mid-2022, there was a notable decline in profitability from March 2023 onwards, which may warrant further exploration into the factors affecting the company's overall financial results and efficiency in utilizing its assets.
See also:
Philip Morris International Inc Profitability Ratios (Quarterly Data)