Philip Morris International Inc (PM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -11,225,000 | -8,957,000 | -10,106,000 | -12,567,000 | -11,577,000 |
| ROE | — | — | — | — | — |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,813,000K ÷ $-11,225,000K
= —
To calculate the Return on Equity (ROE) for Philip Morris International Inc, we can use the formula:
ROE = Net Income / Average Shareholders' Equity
However, since the data for ROE is not provided in the table, we can analyze the components of ROE over the years to understand the company's performance:
1. Net Income: The net income of the company over the years reflects its profitability. A consistent increase in net income suggests improved operational efficiency and higher profitability.
2. Shareholders' Equity: Shareholders' Equity represents the shareholders' ownership interest in the company. An increase in shareholders' equity can be due to retained earnings, stock issuances, or reduction in liabilities. It is a measure of the company's financial health and stability.
By analyzing the trend in both net income and shareholders' equity over the years, we can assess the company's ability to generate profit from the shareholders' investments.
ROE is a key financial ratio that shows how effectively a company is utilizing shareholders' equity to generate profit. A high ROE indicates that the company is generating more profit with less equity, which is favorable for shareholders. On the other hand, a decreasing ROE may signal inefficiency in the utilization of equity or a decline in profitability.
Without the specific ROE values provided in the table, a detailed analysis of Philip Morris International Inc's ROE trend and its components over the years would provide valuable insights into the company's financial performance and shareholder value creation.
Peer comparison
Dec 31, 2023