Philip Morris International Inc (PM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,813,000 | 9,048,000 | 9,109,000 | 8,056,000 | 7,185,000 |
| Total assets | US$ in thousands | 65,304,000 | 61,681,000 | 41,290,000 | 44,815,000 | 42,875,000 |
| ROA | 11.96% | 14.67% | 22.06% | 17.98% | 16.76% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $7,813,000K ÷ $65,304,000K
= 11.96%
The return on assets (ROA) of Philip Morris International Inc has shown fluctuations over the past five years. The ROA decreased from 16.72% in 2019 to 17.93% in 2020, followed by a further decrease to 22.00% in 2021, which was the highest ROA observed during this period. Subsequently, there was a decline to 14.63% in 2022 and a further decrease to 11.93% in 2023.
These fluctuations indicate varying levels of profitability generated by the company relative to its total assets. The decreasing trend in ROA from 2021 to 2023 suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate earnings. A declining ROA could be a concern for investors and stakeholders as it highlights a potential decrease in the company's ability to generate profit from its asset base. Further analysis and examination of the company's financial performance and asset management strategies may be warranted to address the declining trend in ROA.
Peer comparison
Dec 31, 2023