Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Philip Morris International Inc., solvency ratios
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Debt to Capital
- The debt to capital ratio exhibits a declining trend from 1.66 in 2020 to 1.26 in 2022, indicating a reduction in reliance on debt relative to capital during this period. However, starting in 2023, the ratio slightly increased to 1.31 and further to 1.35 in 2024, suggesting a moderate rise in debt levels relative to capital in the most recent years.
- Debt to Capital (Including Operating Lease Liability)
- This ratio follows a similar pattern to the debt to capital ratio without leases, decreasing from 1.64 in 2020 to 1.26 in 2022, then experiencing a minor increase to 1.3 in 2023 and 1.34 in 2024. The close similarity in values indicates that operating lease liabilities contribute marginally to the overall debt structure.
- Debt to Assets
- The debt to assets ratio remained relatively stable around 0.7 from 2020 to 2022, with a slight increase observed in 2023 and 2024, reaching 0.74. This suggests a consistent but slightly increasing proportion of assets financed through debt over the analyzed period.
- Debt to Assets (Including Operating Lease Liability)
- This metric shows comparable behavior to debt to assets without lease liabilities, with values slightly higher by approximately 0.02 across all years. The increase from 0.72 in 2020 to 0.75 in 2024 reflects a steady but modest rise in total debt obligations relative to assets.
- Interest Coverage
- The interest coverage ratio demonstrates a downward trend from a high of 17.8 in 2021 to 6.97 in 2024. The decline is especially pronounced between 2022 and 2023, falling from 16.33 to 7.95, which indicates a substantial reduction in the company's ability to cover interest expenses using operating earnings.
- Fixed Charge Coverage
- Similarly, the fixed charge coverage ratio decreased from 13.43 in 2021 to 6.14 in 2024, mirroring the pattern seen in interest coverage. The sharp decrease between 2022 and 2023 suggests increasing burdens from fixed financial obligations relative to operational earnings.
Debt Ratios
Coverage Ratios
Debt to Equity
Philip Morris International Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Total PMI stockholders’ deficit | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Coca-Cola Co. | 1.79 | 1.62 | 1.62 | 1.86 | 2.22 | |
| Mondelēz International Inc. | 0.66 | 0.69 | 0.85 | 0.69 | 0.73 | |
| PepsiCo Inc. | 2.46 | 2.38 | 2.28 | 2.51 | 3.28 | |
| Debt to Equity, Sector | ||||||
| Food, Beverage & Tobacco | 2.62 | 2.49 | 2.44 | 2.28 | 2.90 | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 1.11 | 1.16 | 1.08 | 1.07 | 1.24 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Total PMI stockholders’ deficit
= 45,695 ÷ -11,750 = —
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a fluctuating trend over the observed periods. Starting at $31,536 million in 2020, it declined to $27,806 million in 2021, representing a notable decrease. However, in 2022, the total debt increased significantly to $43,123 million, followed by continued growth to $47,909 million in 2023. In 2024, there was a moderate reduction to $45,695 million. Overall, the debt level in 2024 remains substantially higher than the initial 2020 value, indicating a general upward trajectory with some variability.
- Total PMI Stockholders’ Deficit
- The stockholders' deficit has shown a consistent rising trend in magnitude, reflecting an increasing deficit each year. In 2020, the deficit stood at -$12,567 million. This deficit reduced slightly to -$10,106 million in 2021 and further to -$8,957 million in 2022, suggesting a temporary improvement. Nonetheless, from 2023 onwards, the deficit increased again, reaching -$11,225 million in 2023 and further to -$11,750 million in 2024. This pattern indicates periodic fluctuations but an overall increase in stockholders' deficit over the period studied.
- Debt to Equity Ratio
- Data for the debt to equity ratio is unavailable for all periods, limiting the ability to assess the leverage relative to equity comprehensively. However, considering the movement in total debt and stockholders' deficit, it is plausible that the ratio could have experienced significant variation, reflecting changes in the company's capital structure and financial risk profile.
Debt to Equity (including Operating Lease Liability)
Philip Morris International Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 177) | 197) | 178) | 192) | 190) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 427) | 456) | 436) | 344) | 517) | |
| Total debt (including operating lease liability) | 46,299) | 48,562) | 43,737) | 28,342) | 32,243) | |
| Total PMI stockholders’ deficit | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 1.84 | 1.67 | 1.68 | 1.92 | 2.30 | |
| Mondelēz International Inc. | 0.69 | 0.71 | 0.88 | 0.71 | 0.75 | |
| PepsiCo Inc. | 2.65 | 2.54 | 2.42 | 2.64 | 3.41 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 2.73 | 2.59 | 2.53 | 2.36 | 3.00 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.23 | 1.28 | 1.20 | 1.19 | 1.39 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total PMI stockholders’ deficit
= 46,299 ÷ -11,750 = —
2 Click competitor name to see calculations.
The financial data from 2020 to 2024 presents significant movements in total debt and stockholders’ equity position of the company.
- Total debt (including operating lease liability)
-
The total debt decreased from USD 32,243 million in 2020 to USD 28,342 million in 2021, indicating a reduction of approximately 12%. However, a sharp increase followed in 2022, with debt rising to USD 43,737 million, representing a 54% increase from the previous year. This upward trend continued in 2023, peaking at USD 48,562 million, before slightly decreasing to USD 46,299 million in 2024. Overall, the data shows heightened leverage after 2021 with total debt increasing substantially over the period.
- Total PMI stockholders’ deficit
-
The stockholders’ deficit improved significantly from USD -12,567 million in 2020 to USD -8,957 million in 2022, reflecting a reduction in the deficit and thus a strengthening equity position. However, this positive trend reversed in 2023 and 2024, with deficits increasing again to USD -11,225 million and USD -11,750 million respectively. The data suggests a recovery phase during 2021-2022 was followed by a deterioration in equity standing in the subsequent two years.
- Debt to equity (including operating lease liability)
-
This ratio is not reported in the data provided, limiting the ability to interpret the leverage in relation to shareholder equity explicitly through this key metric.
Debt to Capital
Philip Morris International Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Total PMI stockholders’ deficit | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
| Total capital | 33,945) | 36,684) | 34,166) | 17,700) | 18,969) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.35 | 1.31 | 1.26 | 1.57 | 1.66 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Coca-Cola Co. | 0.64 | 0.62 | 0.62 | 0.65 | 0.69 | |
| Mondelēz International Inc. | 0.40 | 0.41 | 0.46 | 0.41 | 0.42 | |
| PepsiCo Inc. | 0.71 | 0.70 | 0.69 | 0.72 | 0.77 | |
| Debt to Capital, Sector | ||||||
| Food, Beverage & Tobacco | 0.72 | 0.71 | 0.71 | 0.70 | 0.74 | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.53 | 0.54 | 0.52 | 0.52 | 0.55 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 45,695 ÷ 33,945 = 1.35
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's debt and capital structure over the five-year period ending December 31, 2024.
- Total Debt
- The total debt experienced a decrease from 31,536 million USD in 2020 to 27,806 million USD in 2021, indicating a reduction in leverage during that period. However, there was a significant increase in total debt in 2022, reaching 43,123 million USD. This upward trend continued, albeit at a slower pace, with debt rising to 47,909 million USD in 2023 before slightly declining to 45,695 million USD in 2024.
- Total Capital
- Total capital followed a somewhat similar pattern but with less volatility. It decreased marginally from 18,969 million USD in 2020 to 17,700 million USD in 2021, followed by a substantial increase to 34,166 million USD in 2022. This value rose further to 36,684 million USD in 2023 and then decreased slightly to 33,945 million USD in 2024.
- Debt to Capital Ratio
- The debt to capital ratio, representing the proportion of debt relative to total capital, showed a decreasing trend from 1.66 in 2020 to 1.26 in 2022. This indicated an improvement in the capital structure by reducing relative leverage during the early years. However, the ratio increased again to 1.31 in 2023 and 1.35 in 2024, signaling a moderate rise in leverage after 2022 but remaining lower than the initial 2020 level.
Overall, the data indicates initial deleveraging followed by increased borrowing and capital expansion beginning in 2022. The fluctuations in the debt to capital ratio suggest the company adjusted its financing strategy, balancing between debt and equity to support its capital base. Despite some increases in debt levels, the leverage ratio remains below the starting point in 2020, which may reflect a deliberate approach to maintaining financial flexibility.
Debt to Capital (including Operating Lease Liability)
Philip Morris International Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 177) | 197) | 178) | 192) | 190) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 427) | 456) | 436) | 344) | 517) | |
| Total debt (including operating lease liability) | 46,299) | 48,562) | 43,737) | 28,342) | 32,243) | |
| Total PMI stockholders’ deficit | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
| Total capital (including operating lease liability) | 34,549) | 37,337) | 34,780) | 18,236) | 19,676) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.34 | 1.30 | 1.26 | 1.55 | 1.64 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.65 | 0.63 | 0.63 | 0.66 | 0.70 | |
| Mondelēz International Inc. | 0.41 | 0.42 | 0.47 | 0.42 | 0.43 | |
| PepsiCo Inc. | 0.73 | 0.72 | 0.71 | 0.73 | 0.77 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.73 | 0.72 | 0.72 | 0.70 | 0.75 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.55 | 0.56 | 0.54 | 0.54 | 0.58 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 46,299 ÷ 34,549 = 1.34
2 Click competitor name to see calculations.
The financial data reveals notable dynamics in the company's leverage and capital structure over the five-year span from 2020 to 2024.
- Total Debt (including operating lease liability)
- The total debt exhibited volatility with an initial decline from US$32,243 million at the end of 2020 to US$28,342 million at the end of 2021, indicating a reduction in leverage during this period. Subsequently, total debt increased sharply to US$43,737 million in 2022, followed by further rises to US$48,562 million in 2023. In 2024, there was a slight decrease to US$46,299 million. This pattern suggests a strategic shift towards increased borrowing or financing activities during 2022 and 2023 with a modest deleveraging in the most recent year.
- Total Capital (including operating lease liability)
- This metric shows a declining trend from US$19,676 million in 2020 to US$18,236 million in 2021, aligning with the reduction in debt during that interval. However, total capital surged significantly in 2022 reaching US$34,780 million and continued to grow to US$37,337 million in 2023, before retracting slightly to US$34,549 million in 2024. These fluctuations largely mirror those seen in total debt, indicating that the company’s capital base expanded markedly in the 2022–2023 period before contracting somewhat in 2024.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio declined steadily from a high of 1.64 in 2020 to 1.55 in 2021 and reached its lowest point at 1.26 in 2022. This suggests an improved capital structure and reduced leverage relative to total capital during this timeframe. However, the ratio increased slightly to 1.30 in 2023 and further to 1.34 in 2024, indicating a moderate rise in leverage after 2022 but remaining below the levels observed at the beginning of the period.
In summary, the company's financial leverage experienced a significant decrease between 2020 and 2022, reflecting deleveraging efforts or improved capital adequacy. The subsequent increase in both total debt and total capital from 2022 to 2023 implies renewed borrowing or capital raising activities, with the leverage ratio rising marginally but staying below early-period levels. The slight reduction in debt and capital in 2024, accompanied by a modest rise in the debt to capital ratio, points to an adjustment phase possibly balancing growth and financial risk.
Debt to Assets
Philip Morris International Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Total assets | 61,784) | 65,304) | 61,681) | 41,290) | 44,815) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.74 | 0.73 | 0.70 | 0.67 | 0.70 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Coca-Cola Co. | 0.44 | 0.43 | 0.42 | 0.45 | 0.49 | |
| Mondelēz International Inc. | 0.26 | 0.27 | 0.32 | 0.29 | 0.30 | |
| PepsiCo Inc. | 0.45 | 0.44 | 0.42 | 0.44 | 0.48 | |
| Debt to Assets, Sector | ||||||
| Food, Beverage & Tobacco | 0.46 | 0.46 | 0.45 | 0.44 | 0.47 | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.31 | 0.31 | 0.30 | 0.30 | 0.33 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 45,695 ÷ 61,784 = 0.74
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits an overall upward trend over the five-year period, starting at $31,536 million in 2020 and increasing substantially to $45,695 million by the end of 2024. There was an initial decline observed in 2021 to $27,806 million, followed by a sharp increase in 2022 reaching $43,123 million. The debt continued to rise to $47,909 million in 2023 before slightly decreasing in 2024.
- Total Assets
- Total assets show a fluctuating but generally increasing pattern from 2020 to 2024. Assets decreased from $44,815 million in 2020 to $41,290 million in 2021, after which there was a significant increase to $61,681 million in 2022. The upward momentum continued into 2023 with assets peaking at $65,304 million, then experiencing a decline to $61,784 million in 2024.
- Debt to Assets Ratio
- The debt to assets ratio remains relatively high throughout the period, ranging from 0.67 to 0.74. The ratio decreased slightly from 0.70 in 2020 to 0.67 in 2021, reflecting a reduction in leverage relative to assets. However, this trend reversed thereafter, with the ratio increasing progressively to 0.74 by the end of 2024. This suggests a rising proportion of debt in the company's asset structure over the latter years, indicating increased financial leverage.
Debt to Assets (including Operating Lease Liability)
Philip Morris International Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 137) | 1,968) | 5,637) | 225) | 244) | |
| Current portion of long-term debt | 3,392) | 4,698) | 2,611) | 2,798) | 3,124) | |
| Long-term debt, excluding current portion | 42,166) | 41,243) | 34,875) | 24,783) | 28,168) | |
| Total debt | 45,695) | 47,909) | 43,123) | 27,806) | 31,536) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 177) | 197) | 178) | 192) | 190) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 427) | 456) | 436) | 344) | 517) | |
| Total debt (including operating lease liability) | 46,299) | 48,562) | 43,737) | 28,342) | 32,243) | |
| Total assets | 61,784) | 65,304) | 61,681) | 41,290) | 44,815) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.75 | 0.74 | 0.71 | 0.69 | 0.72 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.45 | 0.44 | 0.44 | 0.47 | 0.51 | |
| Mondelēz International Inc. | 0.27 | 0.28 | 0.33 | 0.30 | 0.31 | |
| PepsiCo Inc. | 0.48 | 0.47 | 0.45 | 0.46 | 0.49 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.48 | 0.48 | 0.47 | 0.46 | 0.49 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.34 | 0.34 | 0.33 | 0.33 | 0.37 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 46,299 ÷ 61,784 = 0.75
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- Over the five-year period from 2020 to 2024, total debt exhibited fluctuations with an overall increasing trend. Initially, total debt decreased from approximately $32,243 million in 2020 to $28,342 million in 2021, representing a reduction in leverage. However, from 2021 onwards, total debt increased significantly, reaching a peak of $48,562 million in 2023 before slightly declining to $46,299 million in 2024. This pattern indicates a strategic borrowing increase after 2021, with a modest reduction in the final year observed.
- Total Assets
- Total assets showed notable growth over the period, rising from $44,815 million in 2020 to a peak of $65,304 million in 2023. This growth reflects an expansion or revaluation of the asset base. However, there was a contraction in assets in 2024, with the value declining to $61,784 million. Despite this decrease, the 2024 assets level remains significantly higher compared to 2020 and 2021 figures.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio started at 0.72 in 2020 and showed a slight improvement in 2021, decreasing to 0.69, which aligns with the reduction in total debt noted in the same period. From 2021 onwards, this ratio increased progressively, reaching 0.75 by 2024. The increasing ratio after 2021 suggests that total debt grew at a faster rate than total assets, which could imply higher financial leverage and possibly increased financial risk.
In summary, the financial data reveals a shift from deleveraging in 2021 to increased leverage in subsequent years. Total assets expanded substantially until 2023 before contracting in 2024, while total debt experienced overall growth after an initial decline. The rising debt to assets ratio over the last three years highlights an increasing reliance on debt financing relative to assets, warranting careful monitoring of financial stability and risk exposure going forward.
Financial Leverage
Philip Morris International Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 61,784) | 65,304) | 61,681) | 41,290) | 44,815) | |
| Total PMI stockholders’ deficit | (11,750) | (11,225) | (8,957) | (10,106) | (12,567) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Coca-Cola Co. | 4.05 | 3.77 | 3.85 | 4.10 | 4.52 | |
| Mondelēz International Inc. | 2.54 | 2.52 | 2.65 | 2.37 | 2.46 | |
| PepsiCo Inc. | 5.51 | 5.43 | 5.38 | 5.76 | 6.91 | |
| Financial Leverage, Sector | ||||||
| Food, Beverage & Tobacco | 5.69 | 5.44 | 5.37 | 5.16 | 6.13 | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.62 | 3.71 | 3.59 | 3.59 | 3.76 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 61,784 ÷ -11,750 = —
2 Click competitor name to see calculations.
The analysis of the annual financial data reveals several notable trends over the period from 2020 to 2024. Total assets experienced fluctuations, initially declining from US$44,815 million in 2020 to US$41,290 million in 2021, followed by a substantial increase to US$61,681 million in 2022 and further rising to US$65,304 million in 2023. However, there was a subsequent decline to US$61,784 million in 2024, indicating some volatility in asset levels over the five years.
Regarding the total PMI stockholders’ deficit, the data shows a decreasing deficit from -US$12,567 million in 2020 to -US$8,957 million in 2022, indicating an improvement in net equity. However, the deficit increased again in subsequent years, reaching -US$11,225 million in 2023 and further expanding to -US$11,750 million in 2024, suggesting a deterioration in shareholders' equity position during this period.
The combination of increasing total assets after 2021 with a growing stockholders’ deficit from 2022 onwards implies that asset growth may have been accompanied by increased liabilities or losses impacting shareholder equity. The absence of data on financial leverage ratios hampers a deeper analysis of capital structure dynamics, but the observed trends in assets and equity hint at potential financial stability concerns that merit further investigation.
Interest Coverage
Philip Morris International Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 7,057) | 7,813) | 9,048) | 9,109) | 8,056) | |
| Add: Net income attributable to noncontrolling interest | 446) | 455) | 479) | 601) | 536) | |
| Add: Income tax expense | 3,017) | 2,339) | 2,244) | 2,671) | 2,377) | |
| Add: Interest expense | 1,763) | 1,526) | 768) | 737) | 728) | |
| Earnings before interest and tax (EBIT) | 12,283) | 12,133) | 12,539) | 13,118) | 11,697) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 6.97 | 7.95 | 16.33 | 17.80 | 16.07 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 8.90 | 9.48 | 14.25 | 8.78 | 7.78 | |
| Mondelēz International Inc. | 12.99 | 12.83 | 9.39 | 16.08 | 12.33 | |
| PepsiCo Inc. | 8.44 | 8.95 | 10.57 | 5.94 | 8.24 | |
| Interest Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 8.53 | 9.23 | 12.81 | 9.56 | 10.01 | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 10.92 | 11.37 | 15.69 | 11.46 | 11.62 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,283 ÷ 1,763 = 6.97
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
-
The EBIT showed an overall growth trend from 2020 to 2021, increasing from 11,697 million USD to 13,118 million USD.
In 2022, there was a moderate decline to 12,539 million USD, followed by a further slight decrease to 12,133 million USD in 2023.
In 2024, EBIT exhibited a mild recovery, rising slightly to 12,283 million USD.
This pattern suggests some volatility with a peak in 2021, then a period of contraction, and a modest rebound in the latest year.
- Interest expense
-
Interest expense remained relatively stable from 2020 to 2022, fluctuating modestly between 728 million USD and 768 million USD.
However, a significant increase occurred starting in 2023, with interest expense doubling to 1,526 million USD and further growing to 1,763 million USD in 2024.
This sharp rise in interest expense indicates increased borrowing costs or higher debt levels in the most recent two years.
- Interest coverage ratio
-
The interest coverage ratio, which measures the ability to meet interest obligations from operating income, declined notably over the period.
From a strong position of 16.07 in 2020, it improved slightly to 17.8 in 2021 but then fell to 16.33 in 2022.
The ratio dropped sharply to 7.95 in 2023 and further to 6.97 in 2024, reflecting reduced capacity to cover interest expenses despite relatively stable EBIT.
The decrease in coverage ratio correlates with the steep rise in interest expense, suggesting increased financial leverage or higher cost of debt.
Fixed Charge Coverage
Philip Morris International Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 7,057) | 7,813) | 9,048) | 9,109) | 8,056) | |
| Add: Net income attributable to noncontrolling interest | 446) | 455) | 479) | 601) | 536) | |
| Add: Income tax expense | 3,017) | 2,339) | 2,244) | 2,671) | 2,377) | |
| Add: Interest expense | 1,763) | 1,526) | 768) | 737) | 728) | |
| Earnings before interest and tax (EBIT) | 12,283) | 12,133) | 12,539) | 13,118) | 11,697) | |
| Add: Operating lease cost | 283) | 266) | 248) | 259) | 317) | |
| Earnings before fixed charges and tax | 12,566) | 12,399) | 12,787) | 13,377) | 12,014) | |
| Interest expense | 1,763) | 1,526) | 768) | 737) | 728) | |
| Operating lease cost | 283) | 266) | 248) | 259) | 317) | |
| Fixed charges | 2,046) | 1,792) | 1,016) | 996) | 1,045) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.14 | 6.92 | 12.59 | 13.43 | 11.50 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 7.48 | 7.73 | 10.14 | 7.41 | 6.45 | |
| Mondelēz International Inc. | 9.21 | 9.42 | 6.60 | 10.28 | 8.27 | |
| PepsiCo Inc. | 5.99 | 6.43 | 7.28 | 4.85 | 6.06 | |
| Fixed Charge Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 6.78 | 7.29 | 9.14 | 7.60 | 7.54 | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 7.34 | 7.38 | 9.06 | 7.46 | 7.19 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,566 ÷ 2,046 = 6.14
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax showed an initial increase from 12,014 million US dollars in 2020 to a peak of 13,377 million US dollars in 2021. This was followed by a decline in 2022 to 12,787 million US dollars and a further decrease to 12,399 million US dollars in 2023. There was a slight recovery in 2024, with earnings rising marginally to 12,566 million US dollars, but the overall trend from 2021 indicates a gradual decrease in earnings before fixed charges and tax over the last three years.
- Fixed charges
- Fixed charges exhibited a downward trend from 1,045 million US dollars in 2020 to 996 million US dollars in 2021, followed by a slight increase to 1,016 million US dollars in 2022. However, there was a significant rise in fixed charges thereafter, with values increasing sharply to 1,792 million US dollars in 2023 and further to 2,046 million US dollars in 2024. This substantial increase in fixed charges in the last two years is notable and suggests higher financial obligations or costs related to fixed charges during this period.
- Fixed charge coverage ratio
- The fixed charge coverage ratio displayed a strong position in 2020 at 11.5, improving further to 13.43 in 2021. In 2022, the ratio slightly declined to 12.59 but remained above 12. A marked deterioration is visible in 2023 and 2024, with the ratio falling to 6.92 in 2023 and further decreasing to 6.14 in 2024. This decline reflects a reduced ability to cover fixed charges with earnings, which is consistent with the increase in fixed charges and the reduction in earnings before fixed charges and tax over the recent years.