Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Philip Morris International Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2019-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Philip Morris International Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Philip Morris International Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Philip Morris International Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Philip Morris International Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Philip Morris International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 22,281) | 20,360) | 21,375) | 19,125) | 19,292) | |
| Net revenues | 35,174) | 31,762) | 31,405) | 28,694) | 29,805) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 63.35% | 64.10% | 68.06% | 66.65% | 64.73% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 58.34% | 56.77% | 53.79% | 49.80% | 50.62% | |
| Coca-Cola Co. | 59.52% | 58.14% | 60.27% | 59.31% | 60.77% | |
| PepsiCo Inc. | 54.21% | 53.03% | 53.35% | 54.82% | 55.13% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 22,281 ÷ 35,174 = 63.35%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Philip Morris International Inc. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Philip Morris International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 11,556) | 12,246) | 12,975) | 11,668) | 10,531) | |
| Net revenues | 35,174) | 31,762) | 31,405) | 28,694) | 29,805) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 32.85% | 38.56% | 41.32% | 40.66% | 35.33% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 47.16% | 47.49% | 44.44% | 41.57% | 41.12% | |
| Coca-Cola Co. | 24.72% | 25.37% | 26.67% | 27.25% | 27.06% | |
| PepsiCo Inc. | 13.10% | 13.33% | 14.04% | 14.32% | 15.32% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 23.57% | 25.01% | 26.21% | 26.30% | 25.88% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 7.91% | 9.22% | 9.19% | 8.88% | 8.07% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 11,556 ÷ 35,174 = 32.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Philip Morris International Inc. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Philip Morris International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 7,813) | 9,048) | 9,109) | 8,056) | 7,185) | |
| Net revenues | 35,174) | 31,762) | 31,405) | 28,694) | 29,805) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 22.21% | 28.49% | 29.00% | 28.08% | 24.11% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 33.21% | 22.97% | 9.51% | 17.08% | -5.15% | |
| Coca-Cola Co. | 23.42% | 22.19% | 25.28% | 23.47% | 23.94% | |
| PepsiCo Inc. | 9.92% | 10.31% | 9.59% | 10.12% | 10.89% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 18.15% | 17.86% | 16.50% | 17.31% | 13.89% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 5.80% | 6.43% | 6.12% | 6.32% | 4.14% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net earnings attributable to PMI ÷ Net revenues
= 100 × 7,813 ÷ 35,174 = 22.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Philip Morris International Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Philip Morris International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 7,813) | 9,048) | 9,109) | 8,056) | 7,185) | |
| Total PMI stockholders’ deficit | (11,225) | (8,957) | (10,106) | (12,567) | (11,577) | |
| Profitability Ratio | ||||||
| ROE1 | — | — | — | — | — | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | 157.34% | -20.78% | |
| Coca-Cola Co. | 41.30% | 39.59% | 42.48% | 40.14% | 46.99% | |
| PepsiCo Inc. | 49.04% | 51.96% | 47.48% | 52.92% | 49.47% | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 120.39% | 117.44% | 106.01% | 118.96% | 77.88% | |
| ROE, Industry | ||||||
| Consumer Staples | 37.72% | 38.84% | 35.60% | 35.51% | 22.58% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 7,813 ÷ -11,225 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
Philip Morris International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 7,813) | 9,048) | 9,109) | 8,056) | 7,185) | |
| Total assets | 65,304) | 61,681) | 41,290) | 44,815) | 42,875) | |
| Profitability Ratio | ||||||
| ROA1 | 11.96% | 14.67% | 22.06% | 17.98% | 16.76% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 21.08% | 15.60% | 6.26% | 9.42% | -2.62% | |
| Coca-Cola Co. | 10.97% | 10.29% | 10.36% | 8.87% | 10.33% | |
| PepsiCo Inc. | 9.03% | 9.67% | 8.25% | 7.66% | 9.31% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 11.83% | 11.73% | 10.83% | 10.05% | 8.61% | |
| ROA, Industry | ||||||
| Consumer Staples | 9.00% | 9.73% | 8.87% | 8.56% | 5.91% | |
Based on: 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), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 7,813 ÷ 65,304 = 11.96%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Philip Morris International Inc. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |