Philip Morris International Inc (PM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — |
| Debt-to-equity ratio | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — |
The solvency ratios for Philip Morris International Inc, as indicated by the provided data, show a mixed trend over the past five years. The debt-to-assets ratio has gradually increased from 0.67 in 2021 to 0.73 in 2023, indicating that the company relies more on debt financing compared to its total assets.
Similarly, the debt-to-capital ratio has also shown an upward trend, increasing from 1.26 in 2022 to 1.31 in 2023. This suggests that a larger portion of the company's capital structure is comprised of debt.
The absence of data for the debt-to-equity ratio and financial leverage ratio limits a comprehensive analysis of the solvency position based on these specific metrics.
Overall, the increasing trend in the debt-related ratios may raise some concerns regarding the company's solvency and financial risk management practices. It is essential for stakeholders to closely monitor these ratios to assess the company's ability to meet its debt obligations and sustain its operations effectively in the long term.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.65 | 15.70 | 16.98 | 15.33 | 12.91 |
The interest coverage ratio for Philip Morris International Inc has exhibited a decreasing trend over the past five years. The company's ability to cover its interest expenses has decreased from 11.67 in 2023 to 21.06 in 2022, 20.90 in 2021, 18.91 in 2020, and 18.74 in 2019.
This declining trend may indicate that the company's earnings before interest and taxes (EBIT) are not increasing at the same rate as its interest expenses. A decreasing interest coverage ratio could potentially raise concerns about the company's ability to meet its debt obligations in the long run. Investors and creditors typically prefer higher interest coverage ratios as they indicate a company's capacity to comfortably meet its interest payments. Therefore, it would be crucial for Philip Morris International Inc to closely monitor and manage its interest coverage ratio to ensure financial stability and sustainability.