Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Philip Morris International Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Philip Morris International Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Philip Morris International Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Philip Morris International Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Philip Morris International Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Philip Morris International Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Philip Morris International Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Philip Morris International Inc. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
Philip Morris International Inc., inventory turnover 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) | ||||||
| Cost of sales | 12,893) | 11,402) | 10,030) | 9,569) | 10,513) | |
| Inventories | 10,774) | 9,886) | 8,720) | 9,591) | 9,235) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.20 | 1.15 | 1.15 | 1.00 | 1.14 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.12 | 5.46 | 5.96 | 3.98 | 3.09 | |
| Coca-Cola Co. | 4.19 | 4.25 | 4.50 | 4.11 | 4.33 | |
| PepsiCo Inc. | 7.85 | 7.77 | 8.53 | 7.62 | 9.03 | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.66 | 3.72 | 3.94 | 3.30 | 3.42 | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 7.41 | 6.96 | 7.97 | 7.50 | 7.42 | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 12,893 ÷ 10,774 = 1.20
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Philip Morris International Inc. inventory turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Philip Morris International Inc., receivables turnover 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 revenues | 35,174) | 31,762) | 31,405) | 28,694) | 29,805) | |
| Trade receivables, less allowances | 3,461) | 3,850) | 3,123) | 2,905) | 3,080) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 10.16 | 8.25 | 10.06 | 9.88 | 9.68 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 344.83 | 522.83 | 553.47 | 190.90 | 165.20 | |
| Coca-Cola Co. | 13.42 | 12.33 | 11.01 | 10.50 | 9.38 | |
| PepsiCo Inc. | 8.46 | 8.50 | 9.16 | 8.37 | 8.59 | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 11.09 | 10.61 | 11.43 | 10.85 | 10.61 | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 36.63 | 35.12 | 38.75 | 37.54 | 34.71 | |
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
Receivables turnover = Net revenues ÷ Trade receivables, less allowances
= 35,174 ÷ 3,461 = 10.16
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Philip Morris International Inc. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Payables Turnover
Philip Morris International Inc., payables turnover 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) | ||||||
| Cost of sales | 12,893) | 11,402) | 10,030) | 9,569) | 10,513) | |
| Accounts payable | 4,143) | 4,076) | 3,331) | 2,780) | 2,299) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 3.11 | 2.80 | 3.01 | 3.44 | 4.57 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 10.68 | 11.67 | 15.86 | 20.57 | 21.80 | |
| Coca-Cola Co. | 3.31 | 3.39 | 3.34 | 3.82 | 3.84 | |
| PepsiCo Inc. | 3.60 | 3.78 | 3.77 | 3.59 | 3.76 | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.62 | 3.70 | 3.82 | 4.03 | 4.32 | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 7.27 | 6.61 | 6.91 | 7.01 | 7.11 | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 12,893 ÷ 4,143 = 3.11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Philip Morris International Inc. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Philip Morris International Inc., working capital turnover 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) | ||||||
| Current assets | 19,755) | 19,619) | 17,717) | 21,492) | 20,514) | |
| Less: Current liabilities | 26,383) | 27,336) | 19,255) | 19,615) | 18,833) | |
| Working capital | (6,628) | (7,717) | (1,538) | 1,877) | 1,681) | |
| Net revenues | 35,174) | 31,762) | 31,405) | 28,694) | 29,805) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | — | 15.29 | 17.73 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 14.47 | 15.00 | 14.90 | 7.12 | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | 37.68 | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | — | |
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
Working capital turnover = Net revenues ÷ Working capital
= 35,174 ÷ -6,628 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Philip Morris International Inc., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.20 | 1.15 | 1.15 | 1.00 | 1.14 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 305 | 316 | 317 | 366 | 321 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 71 | 67 | 61 | 92 | 118 | |
| Coca-Cola Co. | 87 | 86 | 81 | 89 | 84 | |
| PepsiCo Inc. | 46 | 47 | 43 | 48 | 40 | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 100 | 98 | 93 | 111 | 107 | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 49 | 52 | 46 | 49 | 49 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.20 = 305
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Philip Morris International Inc. number of days of inventory outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Philip Morris International Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 10.16 | 8.25 | 10.06 | 9.88 | 9.68 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 36 | 44 | 36 | 37 | 38 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 1 | 1 | 2 | 2 | |
| Coca-Cola Co. | 27 | 30 | 33 | 35 | 39 | |
| PepsiCo Inc. | 43 | 43 | 40 | 44 | 43 | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 33 | 34 | 32 | 34 | 34 | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 10 | 10 | 9 | 10 | 11 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.16 = 36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Philip Morris International Inc., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 305 | 316 | 317 | 366 | 321 | |
| Average receivable collection period | 36 | 44 | 36 | 37 | 38 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 341 | 360 | 353 | 403 | 359 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 72 | 68 | 62 | 94 | 120 | |
| Coca-Cola Co. | 114 | 116 | 114 | 124 | 123 | |
| PepsiCo Inc. | 89 | 90 | 83 | 92 | 83 | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 133 | 132 | 125 | 145 | 141 | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 59 | 62 | 55 | 59 | 60 | |
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 cycle = Average inventory processing period + Average receivable collection period
= 305 + 36 = 341
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Philip Morris International Inc. operating cycle deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Payables Payment Period
Philip Morris International Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 3.11 | 2.80 | 3.01 | 3.44 | 4.57 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 117 | 130 | 121 | 106 | 80 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 34 | 31 | 23 | 18 | 17 | |
| Coca-Cola Co. | 110 | 108 | 109 | 96 | 95 | |
| PepsiCo Inc. | 101 | 97 | 97 | 102 | 97 | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 101 | 99 | 96 | 91 | 85 | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 50 | 55 | 53 | 52 | 51 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.11 = 117
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Philip Morris International Inc. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
Philip Morris International Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 305 | 316 | 317 | 366 | 321 | |
| Average receivable collection period | 36 | 44 | 36 | 37 | 38 | |
| Average payables payment period | 117 | 130 | 121 | 106 | 80 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 224 | 230 | 232 | 297 | 279 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 38 | 37 | 39 | 76 | 103 | |
| Coca-Cola Co. | 4 | 8 | 5 | 28 | 28 | |
| PepsiCo Inc. | -12 | -7 | -14 | -10 | -14 | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 32 | 33 | 29 | 54 | 56 | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 9 | 7 | 2 | 7 | 9 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 305 + 36 – 117 = 224
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Philip Morris International Inc. cash conversion cycle improved from 2021 to 2022 and from 2022 to 2023. |