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: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| 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 2020 to 2021 and from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Philip Morris International Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Philip Morris International Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| 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 2020 to 2021 and from 2021 to 2022. |
| 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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| 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 2020 to 2021 and from 2021 to 2022. |
| 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 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Philip Morris International Inc., inventory turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 11,402) | 10,030) | 9,569) | 10,513) | 10,758) | |
| Inventories | 9,886) | 8,720) | 9,591) | 9,235) | 8,804) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 1.15 | 1.15 | 1.00 | 1.14 | 1.22 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Altria Group Inc. | 5.46 | 5.96 | 3.98 | 3.09 | — | |
| Coca-Cola Co. | 4.25 | 4.50 | 4.11 | 4.33 | — | |
| Mondelēz International Inc. | 5.97 | 6.45 | 6.10 | 6.10 | — | |
| PepsiCo Inc. | 7.77 | 8.53 | 7.62 | 9.03 | — | |
| Inventory Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 6.08 | 6.60 | 5.74 | 5.83 | — | |
| Inventory Turnover, Industry | ||||||
| Consumer Staples | 7.60 | 8.82 | 8.40 | 8.24 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 11,402 ÷ 9,886 = 1.15
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 2020 to 2021 and from 2021 to 2022. |
Receivables Turnover
Philip Morris International Inc., receivables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Trade receivables, less allowances | 3,850) | 3,123) | 2,905) | 3,080) | 2,950) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 20.95 | 26.33 | 26.18 | 25.30 | 27.06 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 522.83 | 553.47 | 190.90 | 165.20 | — | |
| Coca-Cola Co. | 12.33 | 11.01 | 10.50 | 9.38 | — | |
| Mondelēz International Inc. | 10.20 | 12.29 | 11.57 | 11.69 | — | |
| PepsiCo Inc. | 8.50 | 9.16 | 8.37 | 8.59 | — | |
| Receivables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 11.08 | 11.86 | 11.17 | 10.98 | — | |
| Receivables Turnover, Industry | ||||||
| Consumer Staples | 34.89 | 38.54 | 37.27 | 34.73 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Receivables turnover = Revenues including excise taxes ÷ Trade receivables, less allowances
= 80,669 ÷ 3,850 = 20.95
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Payables Turnover
Philip Morris International Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of sales | 11,402) | 10,030) | 9,569) | 10,513) | 10,758) | |
| Accounts payable | 4,076) | 3,331) | 2,780) | 2,299) | 2,068) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 2.80 | 3.01 | 3.44 | 4.57 | 5.20 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Altria Group Inc. | 11.67 | 15.86 | 20.57 | 21.80 | — | |
| Coca-Cola Co. | 3.39 | 3.34 | 3.82 | 3.84 | — | |
| Mondelēz International Inc. | 2.67 | 2.60 | 2.60 | 2.65 | — | |
| PepsiCo Inc. | 3.78 | 3.77 | 3.59 | 3.76 | — | |
| Payables Turnover, Sector | ||||||
| Food, Beverage & Tobacco | 3.53 | 3.56 | 3.65 | 3.74 | — | |
| Payables Turnover, Industry | ||||||
| Consumer Staples | 6.51 | 6.79 | 6.85 | 6.89 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 11,402 ÷ 4,076 = 2.80
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 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Philip Morris International Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 19,619) | 17,717) | 21,492) | 20,514) | 19,442) | |
| Less: Current liabilities | 27,336) | 19,255) | 19,615) | 18,833) | 17,191) | |
| Working capital | (7,717) | (1,538) | 1,877) | 1,681) | 2,251) | |
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | — | — | 40.52 | 46.35 | 35.46 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Altria Group Inc. | — | — | — | — | — | |
| Coca-Cola Co. | 15.00 | 14.90 | 7.12 | — | — | |
| Mondelēz International Inc. | — | — | — | — | — | |
| PepsiCo Inc. | — | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Food, Beverage & Tobacco | — | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Consumer Staples | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Working capital turnover = Revenues including excise taxes ÷ Working capital
= 80,669 ÷ -7,717 = —
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, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 1.15 | 1.15 | 1.00 | 1.14 | 1.22 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 316 | 317 | 366 | 321 | 299 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Altria Group Inc. | 67 | 61 | 92 | 118 | — | |
| Coca-Cola Co. | 86 | 81 | 89 | 84 | — | |
| Mondelēz International Inc. | 61 | 57 | 60 | 60 | — | |
| PepsiCo Inc. | 47 | 43 | 48 | 40 | — | |
| Average Inventory Processing Period, Sector | ||||||
| Food, Beverage & Tobacco | 60 | 55 | 64 | 63 | — | |
| Average Inventory Processing Period, Industry | ||||||
| Consumer Staples | 48 | 41 | 43 | 44 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.15 = 316
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 2020 to 2021 and from 2021 to 2022. |
Average Receivable Collection Period
Philip Morris International Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 20.95 | 26.33 | 26.18 | 25.30 | 27.06 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 17 | 14 | 14 | 14 | 13 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Altria Group Inc. | 1 | 1 | 2 | 2 | — | |
| Coca-Cola Co. | 30 | 33 | 35 | 39 | — | |
| Mondelēz International Inc. | 36 | 30 | 32 | 31 | — | |
| PepsiCo Inc. | 43 | 40 | 44 | 43 | — | |
| Average Receivable Collection Period, Sector | ||||||
| Food, Beverage & Tobacco | 33 | 31 | 33 | 33 | — | |
| Average Receivable Collection Period, Industry | ||||||
| Consumer Staples | 10 | 9 | 10 | 11 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 20.95 = 17
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, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 316 | 317 | 366 | 321 | 299 | |
| Average receivable collection period | 17 | 14 | 14 | 14 | 13 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 333 | 331 | 380 | 335 | 312 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Altria Group Inc. | 68 | 62 | 94 | 120 | — | |
| Coca-Cola Co. | 116 | 114 | 124 | 123 | — | |
| Mondelēz International Inc. | 97 | 87 | 92 | 91 | — | |
| PepsiCo Inc. | 90 | 83 | 92 | 83 | — | |
| Operating Cycle, Sector | ||||||
| Food, Beverage & Tobacco | 93 | 86 | 97 | 96 | — | |
| Operating Cycle, Industry | ||||||
| Consumer Staples | 58 | 50 | 53 | 55 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 316 + 17 = 333
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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Average Payables Payment Period
Philip Morris International Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 2.80 | 3.01 | 3.44 | 4.57 | 5.20 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 130 | 121 | 106 | 80 | 70 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Altria Group Inc. | 31 | 23 | 18 | 17 | — | |
| Coca-Cola Co. | 108 | 109 | 96 | 95 | — | |
| Mondelēz International Inc. | 137 | 141 | 140 | 138 | — | |
| PepsiCo Inc. | 97 | 97 | 102 | 97 | — | |
| Average Payables Payment Period, Sector | ||||||
| Food, Beverage & Tobacco | 103 | 102 | 100 | 97 | — | |
| Average Payables Payment Period, Industry | ||||||
| Consumer Staples | 56 | 54 | 53 | 53 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.80 = 130
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 2020 to 2021 and from 2021 to 2022. |
Cash Conversion Cycle
Philip Morris International Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 316 | 317 | 366 | 321 | 299 | |
| Average receivable collection period | 17 | 14 | 14 | 14 | 13 | |
| Average payables payment period | 130 | 121 | 106 | 80 | 70 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 203 | 210 | 274 | 255 | 242 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Altria Group Inc. | 37 | 39 | 76 | 103 | — | |
| Coca-Cola Co. | 8 | 5 | 28 | 28 | — | |
| Mondelēz International Inc. | -40 | -54 | -48 | -47 | — | |
| PepsiCo Inc. | -7 | -14 | -10 | -14 | — | |
| Cash Conversion Cycle, Sector | ||||||
| Food, Beverage & Tobacco | -10 | -16 | -3 | -1 | — | |
| Cash Conversion Cycle, Industry | ||||||
| Consumer Staples | 2 | -4 | 0 | 2 | — | |
Based on: 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), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 316 + 17 – 130 = 203
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 2020 to 2021 and from 2021 to 2022. |