Philip Morris International Inc (PM)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 11,678,000 | 12,060,000 | 12,517,000 | 11,161,000 | 10,274,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -11,225,000 | -8,957,000 | -10,106,000 | -12,567,000 | -11,577,000 |
| Return on total capital | — | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $11,678,000K ÷ ($—K + $-11,225,000K)
= —
Return on total capital measures how effectively a company generates profits from the total capital employed, including both equity and debt. For Philip Morris International Inc, the return on total capital has fluctuated over the past five years. In 2023, the return on total capital was 33.74%, slightly lower than the previous year's 36.24%. This decrease may indicate a slightly less efficient use of capital to generate profits. However, compared to the figures in 2021 and 2020, the return on total capital in 2023 still remains at a relatively high level. It is important to continue monitoring this ratio to assess the company's ability to generate returns on its total capital over time.
Peer comparison
Dec 31, 2023