Philip Morris International Inc (PM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,057,000 | 7,813,000 | 9,048,000 | 9,109,000 | 8,056,000 |
| Total assets | US$ in thousands | 61,784,000 | 65,304,000 | 61,681,000 | 41,290,000 | 44,815,000 |
| ROA | 11.42% | 11.96% | 14.67% | 22.06% | 17.98% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $7,057,000K ÷ $61,784,000K
= 11.42%
Philip Morris International Inc's Return on Assets (ROA) has shown fluctuations over the past five years, ranging from a high of 22.06% on December 31, 2021, to a low of 11.42% on December 31, 2024. The ROA indicates how efficiently the company is generating profits from its assets.
The increasing trend from 2020 to 2021 suggests that the company was able to improve its asset utilization and generate more income for each dollar of assets it holds. However, the subsequent decrease in ROA from 2021 to 2024 indicates a potential decline in the company's ability to generate profits from its assets efficiently.
It is essential for Philip Morris International Inc to assess the reasons behind the fluctuating ROA to identify areas of improvement in asset management and operational efficiency. This analysis will help the company make informed decisions to enhance its financial performance and create long-term value for its shareholders.
Peer comparison
Dec 31, 2024