Philip Morris International Inc (PM)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,402,000 | 13,032,000 | 12,748,000 | 11,870,000 | 11,556,000 | 11,591,000 | 11,189,000 | 11,450,000 | 12,017,000 | 12,040,000 | 12,527,000 | 12,829,000 | 12,975,000 | 12,933,000 | 12,721,000 | 12,323,000 | 11,668,000 | 11,269,000 | 10,814,000 | 11,270,000 |
| Interest expense (ttm) | US$ in thousands | 1,763,000 | 2,342,000 | 2,154,000 | 2,122,000 | 2,053,000 | 1,296,000 | 1,295,000 | 998,000 | 768,000 | 146,000 | 300,000 | 461,000 | 461,000 | 479,000 | 488,000 | 489,000 | 618,000 | 590,000 | 559,000 | 547,000 |
| Interest coverage | 7.60 | 5.56 | 5.92 | 5.59 | 5.63 | 8.94 | 8.64 | 11.47 | 15.65 | 82.47 | 41.76 | 27.83 | 28.15 | 27.00 | 26.07 | 25.20 | 18.88 | 19.10 | 19.35 | 20.60 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $13,402,000K ÷ $1,763,000K
= 7.60
The interest coverage ratio of Philip Morris International Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio measures the company's ability to pay interest on its outstanding debt from its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
From March 2020 to June 2022, the interest coverage ratio steadily increased from 20.60 to 41.76, indicating an improvement in the company's ability to cover its interest expenses. This positive trend continued until September 2022, where the ratio reached a peak of 82.47, reflecting a significant improvement in financial health and the ability to service debt.
However, from December 2022 onwards, the interest coverage ratio started to decline, reaching its lowest point of 5.56 by September 30, 2024. This significant drop in the ratio suggests a potential strain on the company's ability to meet its interest obligations from its operating income.
Overall, the analysis of Philip Morris International Inc's interest coverage ratio indicates both positive and negative trends in the company's financial health and ability to manage its debt obligations. These fluctuations could be influenced by various factors such as changes in interest rates, profitability, and overall economic conditions.
Peer comparison
Dec 31, 2024
See also:
Philip Morris International Inc Interest Coverage (Quarterly Data)