Philip Morris International Inc (PM)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 10,531,000 | 10,727,000 | 11,095,000 | 11,001,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 570,000 | 559,000 | 572,000 | 590,000 |
| Interest coverage | 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 | 18.48 | 19.19 | 19.40 | 18.65 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $11,556,000K ÷ $2,053,000K
= 5.63
Philip Morris International Inc's interest coverage ratio has shown a consistent and relatively high level over the analyzed periods. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates that the company has more than enough operating income to cover its interest expenses.
The interest coverage ratios for Philip Morris International Inc have ranged from 11.67 to 22.10 over the past eight quarters. The highest ratio of 22.10 was recorded in Q2 2022, indicating a strong ability to cover interest payments with operating income. The lowest ratio of 11.67 was reported in Q4 2023, which still suggests a healthy interest coverage.
Overall, the trend of increasing interest coverage ratios from Q1 2023 to Q2 2022 indicates an improving ability of the company to service its debt obligations. A consistently high interest coverage ratio reflects strong financial health and stability, providing investors and creditors with confidence in the company's ability to meet its interest payments.
Peer comparison
Dec 31, 2023
See also:
Philip Morris International Inc Interest Coverage (Quarterly Data)