Philip Morris International Inc. (PM) | Analysis of Investments
Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Philip Morris International Inc., adjustment to Net Earnings Attributable To PMI
USD $ in millions
| 12 months ended | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | |
|---|---|---|---|---|---|---|
| Net earnings attributable to PMI (as reported) | 8,800 | 8,591 | 7,259 | 6,342 | 6,890 | |
| Add: Change in fair value of debt and equity securities, net of income taxes | – | (1) | (10) | 12 | (1) | |
| Net earnings attributable to PMI (adjusted) | 8,800 | 8,590 | 7,249 | 6,354 | 6,889 |
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Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)
Philip Morris International Inc., adjusted ratios
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| Net Profit Margin | ||||||
| Reported net profit margin | 11.37% | 11.25% | 10.72% | 10.22% | 10.83% | |
| Adjusted net profit margin | 11.37% | 11.25% | 10.71% | 10.24% | 10.82% | |
| Return on Equity (ROE) | ||||||
| Reported ROE | –% | 3,751.53% | 207.05% | 110.95% | 91.87% | |
| Adjusted ROE | –% | 3,751.09% | 206.76% | 111.16% | 91.85% | |
| Return on Assets (ROA) | ||||||
| Reported ROA | 23.36% | 24.21% | 20.71% | 18.35% | 20.90% | |
| Adjusted ROA | 23.36% | 24.21% | 20.68% | 18.39% | 20.89% | |
| Ratio | Description | The company |
|---|---|---|
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | Philip Morris International Inc.'s adjusted net profit margin improved from 2010 to 2011 and from 2011 to 2012. |
| Adjusted ROE | A profitability ratio calculated as adjusted net income divided by shareholders' equity. | Philip Morris International Inc.'s adjusted ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
| Adjusted ROA | A profitability ratio calculated as adjusted net income divided by total assets. | Philip Morris International Inc.'s adjusted ROA improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. |
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Adjusted Net Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| As Reported | ||||||
| Net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,591 | 7,259 | 6,342 | 6,890 | |
| Net revenues (USD $ in millions) | 77,393 | 76,346 | 67,713 | 62,080 | 63,640 | |
| Net profit margin1 | 11.37% | 11.25% | 10.72% | 10.22% | 10.83% | |
| Adjusted: Mark to Market Available-for-sale Securities | ||||||
| Adjusted net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,590 | 7,249 | 6,354 | 6,889 | |
| Net revenues (USD $ in millions) | 77,393 | 76,346 | 67,713 | 62,080 | 63,640 | |
| Adjusted net profit margin2 | 11.37% | 11.25% | 10.71% | 10.24% | 10.82% | |
2012 Calculations
1 Net profit margin = 100 × Net earnings attributable to PMI ÷ Net revenues
= 100 × 8,800 ÷ 77,393 = 11.37%
2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to PMI ÷ Net revenues
= 100 × 8,800 ÷ 77,393 = 11.37%
| Ratio | Description | The company |
|---|---|---|
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted net income divided by revenue. | Philip Morris International Inc.'s adjusted net profit margin improved from 2010 to 2011 and from 2011 to 2012. |
Adjusted Return On Equity (ROE)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| As Reported | ||||||
| Net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,591 | 7,259 | 6,342 | 6,890 | |
| Total PMI stockholders' equity (deficit) (USD $ in millions) | (3,476) | 229 | 3,506 | 5,716 | 7,500 | |
| ROE1 | –% | 3,751.53% | 207.05% | 110.95% | 91.87% | |
| Adjusted: Mark to Market Available-for-sale Securities | ||||||
| Adjusted net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,590 | 7,249 | 6,354 | 6,889 | |
| Total PMI stockholders' equity (deficit) (USD $ in millions) | (3,476) | 229 | 3,506 | 5,716 | 7,500 | |
| Adjusted ROE2 | –% | 3,751.09% | 206.76% | 111.16% | 91.85% | |
2012 Calculations
1 ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders' equity (deficit)
= 100 × 8,800 ÷ -3,476 = –%
2 Adjusted ROE = 100 × Adjusted net earnings attributable to PMI ÷ Total PMI stockholders' equity (deficit)
= 100 × 8,800 ÷ -3,476 = –%
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROE | A profitability ratio calculated as adjusted net income divided by shareholders' equity. | Philip Morris International Inc.'s adjusted ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
Adjusted Return On Assets (ROA)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | ||
|---|---|---|---|---|---|---|
| As Reported | ||||||
| Net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,591 | 7,259 | 6,342 | 6,890 | |
| Total assets (USD $ in millions) | 37,670 | 35,488 | 35,050 | 34,552 | 32,972 | |
| ROA1 | 23.36% | 24.21% | 20.71% | 18.35% | 20.90% | |
| Adjusted: Mark to Market Available-for-sale Securities | ||||||
| Adjusted net earnings attributable to PMI (USD $ in millions) | 8,800 | 8,590 | 7,249 | 6,354 | 6,889 | |
| Total assets (USD $ in millions) | 37,670 | 35,488 | 35,050 | 34,552 | 32,972 | |
| Adjusted ROA2 | 23.36% | 24.21% | 20.68% | 18.39% | 20.89% | |
2012 Calculations
1 ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 8,800 ÷ 37,670 = 23.36%
2 Adjusted ROA = 100 × Adjusted net earnings attributable to PMI ÷ Total assets
= 100 × 8,800 ÷ 37,670 = 23.36%
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROA | A profitability ratio calculated as adjusted net income divided by total assets. | Philip Morris International Inc.'s adjusted ROA improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. |





