Philip Morris International Inc (PM)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | 1,526,000 | 768,000 | 737,000 | 728,000 | 796,000 |
| Interest coverage | 7.65 | 15.70 | 16.98 | 15.33 | 12.91 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $11,678,000K ÷ $1,526,000K
= 7.65
The interest coverage ratio for Philip Morris International Inc has shown a decreasing trend from 2022 to 2023. In 2023, the interest coverage ratio stands at 11.67, indicating that the company's operating income is able to cover its interest expenses approximately 11.67 times. While the ratio has decreased from the previous year, it is still at a healthy level, suggesting that the company's ability to meet its interest obligations remains strong. Overall, the company has historically maintained a solid interest coverage ratio above 10, demonstrating its strong financial position and ability to service its debt obligations comfortably.
Peer comparison
Dec 31, 2023