Philip Morris International Inc. (NYSE:PM)

Current Income Tax Expense

The current income tax expense shows fluctuating behavior across the five-year period. Starting at 2,520 million US dollars at the end of 2020, it increased moderately to 2,689 million in 2021, followed by a decrease to 2,478 million in 2022. Subsequently, the amount rose again to 2,669 million in 2023 and significantly increased to 3,133 million in 2024. Overall, the current tax expense exhibits a generally upward trend, with a notable spike in the final year.

Deferred Income Tax Expense

Deferred income tax expenses display a negative pattern throughout the period analyzed, indicating tax benefits rather than expenses in this category. Beginning at negative 143 million US dollars in 2020, the deferred tax benefit sharply declined in magnitude to negative 18 million in 2021, representing a smaller benefit. Then, it deepened considerably to negative 234 million in 2022 and further to negative 330 million in 2023, indicating increasing deferred tax benefits. However, in 2024, the deferred tax benefit lessened appreciably to negative 116 million, suggesting a partial reversal of this trend.

Provision for Income Taxes

The provision for income taxes reflects the combined effect of current and deferred taxes. It started at 2,377 million US dollars in 2020 and rose to 2,671 million in 2021. In 2022, the provision decreased to 2,244 million, followed by a slight recovery to 2,339 million in 2023. In 2024, the provision increased substantially to 3,017 million. This movement mirrors the fluctuations in the current and deferred tax expenses, with the final year showing the most pronounced increase.

Summary of Trends

The data indicates that while the current income tax expense generally trended upward over the years, the deferred income tax expense exhibited significant volatility but mainly provided tax benefits, peaking in benefit magnitude during 2023. The overall provision for income taxes followed a pattern consistent with these components, with periodic declines and recoveries, ultimately reaching the highest level in 2024. These patterns may reflect changes in taxable income, adjustments in deferred tax assets and liabilities, or shifts in tax regulation impacting both current and deferred tax calculations.

The analysis of the tax-related financial percentages over the years from 2020 to 2024 reveals several notable trends and shifts in the components influencing the effective tax rate.

U.S. Federal Statutory Tax Rate

The federal statutory tax rate remained stable at 21% consistently throughout the five-year period, indicating no legislative changes affecting this rate.

Foreign Rate Differences

This item exhibits a declining trend, moving from a positive 0.6% in 2020 to a progressively negative value, reaching -1.6% by 2024, suggesting an increasing benefit or reduction in tax burdens from foreign operations or jurisdictions over time.

Dividend Repatriation Cost

This cost shows minor fluctuations, starting at 0.4% in 2020, rising slightly to 0.7% in 2023, and then tapering off to 0.6% in 2024. The modest increase and subsequent stabilization imply relative consistency in repatriation expenses.

Global Intangible Low-Taxed Income (GILTI)

A strong upward trajectory is observed here, with the rate growing from 0.1% in 2020 to a peak of 2% in 2023 before slightly declining to 1.7% in 2024. This trend points to increasing impacts of GILTI provisions on the overall tax rate during the period.

U.S. State Taxes

The state tax component fluctuates with minor variance, starting at 0.2%, dipping to -0.1% in 2023, perhaps reflecting tax credits or refunds, and rising again to 0.6% by 2024, indicating variable state tax effects.

Foreign Derived Intangible Income

This factor consistently contributes a negative impact, ranging from -0.6% to -0.9%, indicating a recurring reduction in tax liability linked to intangible income sourced from foreign jurisdictions, with a slight reduction in negative impact to -0.7% in 2024.

Foreign Exchange

This component emerges only from 2022 onward, showing negative impacts of -1.7% and -1.6% for 2022 and 2023 respectively, followed by a reversal to a positive 1.7% in 2024, suggesting fluctuations in foreign currency effects on tax computations.

Non-Deductible Goodwill Impairment

This cost appears only in 2023 at 1.3%, indicative of a one-time or exceptional event impacting tax deductions for that year.

Unremitted Earnings of Russian Subsidiaries

Introduced in 2023 at 1.7%, then decreasing to 0.6% in 2024, this item reflects specific geopolitical or regulatory considerations affecting tax on earnings not remitted from Russian operations.

Fair Value Adjustment of Equity Securities

This component, present from 2022, starts at 0.1% and rises sharply to 1.1% by 2024, highlighting growing tax impacts from changes in the fair value of equity holdings.

Other

This residual category features small, variable impacts, with a slight positive 0.2% in 2021 shifting to negatives in subsequent years, indicating miscellaneous adjustments with limited material effect.

Effective Tax Rate

The overall effective tax rate demonstrates variability: starting at 21.7% in 2020 and holding steady in 2021, it then decreases to 19.3% in 2022 before climbing significantly to 22.4% in 2023 and peaking at 24.7% in 2024. This pattern reflects the combined effects of the factors discussed, particularly the increased impacts from GILTI, goodwill impairment, unremitted earnings, and fair value adjustments, alongside fluctuations in foreign rate differences and foreign exchange.

In summary, while the base U.S. federal rate remains unchanged, complex international tax dynamics and one-time adjustments have driven the overall effective tax rate upward in recent years. The data suggests increasing tax expenses related to intangible income and foreign operations, partially offset by negative contributions from foreign derived intangible income. The variance in foreign exchange and specific country-related items also contributes to year-on-year volatility in the effective tax rate.

The financial data reveals several notable trends and fluctuations across multiple balance sheet items over the five-year period analyzed.

Accrued Postretirement and Postemployment Benefits

This liability remained relatively stable, with a slight decrease from US$225 million in 2020 to US$208 million in 2024, indicating mild variability but overall maintenance of obligation levels.

Accrued Pension Costs

There was a significant decline from US$720 million in 2020 down to US$277 million in 2022, followed by a partial rebound to US$384 million in 2024. This pattern reflects considerable volatility in pension obligations, possibly due to changes in actuarial assumptions or funding status.

Inventory

Inventory levels dropped dramatically from US$232 million in 2020 to just US$22 million in 2022 but showed a gradual increase thereafter, reaching US$40 million by 2024. The sharp initial decline suggests a shift in inventory management or operational adjustments, while the subsequent rise may indicate rebuilding of stock.

Accrued Liabilities

This account showed a declining trend from US$182 million in 2020 to US$158 million in 2022, followed by increases to US$213 million in 2024. The fluctuations suggest changing obligations or expense recognition timing impacting this liability.

Net Operating Loss, Tax Credit, and Other Carryforwards

A steady increase occurred across the period, nearly tripling from US$351 million in 2020 to US$912 million in 2024. This growth highlights a rising stock of tax assets potentially available for future offset against taxable income, which could be beneficial for tax planning.

Investments in Equity Interests

Reported only in 2024 at US$507 million, indicating either a new investment or a change in accounting or disclosure practices starting that year.

Foreign Exchange (Asset Side)

Exhibited initial presence at US$27 million in 2020, gaps in 2021-2022, a surge to US$149 million in 2023, then no reported value in 2024, suggesting episodic foreign currency gains or valuation changes related to monetary assets.

Other (Asset Side)

Incomplete data was recorded; values showed a decline from US$124 million in 2020 to US$19 million in 2023, with a slight increase to US$62 million in 2024, reflecting variability in miscellaneous asset categories.

Deferred Income Tax Assets

These decreased from US$1,861 million in 2020 to US$1,058 million in 2022, followed by recovery to US$2,326 million in 2024, indicating significant changes in tax-related transient differences or benefit recognition.

Valuation Allowance

The allowance increased in magnitude from -US$250 million in 2020 to -US$1,130 million in 2024, implying a growing estimate of potentially uncollectible deferred tax assets, which impacts the net deferred tax asset base negatively.

Deferred Income Tax Assets, Net of Valuation Allowance

After a decline from US$1,611 million in 2020 to US$680 million in 2022, there was a partial recovery stabilizing around US$1,196 million in 2024. This pattern aligns with the valuation allowance trends and overall deferred tax asset movements.

Intangible Assets

The negative values deepened from -US$374 million in 2020 to a peak negative of -US$2,136 million in 2023 before slightly improving to -US$1,862 million in 2024, suggesting ongoing amortization or impairments impacting intangible asset balances.

Property, Plant and Equipment

Also reported as negative values, fluctuating between -US$200 million in 2020 and -US$152 million in 2024, indicating possible accumulated depreciation or reclassifications.

Unremitted Earnings

Showed a decreasing trend from -US$311 million in 2020 to -US$495 million in 2024, with some short-term fluctuations, which could reflect changing policies on foreign earnings retention or dividend distributions.

Foreign Exchange (Liability Side)

Data shows negative foreign exchange impacts at -US$146 million in 2021, deepening to -US$264 million in 2024, indicating currency translation adjustments or exchange losses associated with liabilities.

Other (Liability Side)

Reported as -US$32 million in 2022 only, with missing data in other years, limiting trend analysis.

Deferred Income Tax Liabilities

Exhibited consistent growth in absolute magnitude from -US$885 million in 2020 to -US$2,773 million in 2024, signaling increasing deferred tax obligations, possibly due to temporary differences on fixed assets or other taxable timing items.

Net Deferred Income Tax Assets (Liabilities)

The figure declined sharply from a positive US$726 million in 2020 to negative values starting in 2022, reaching -US$1,577 million in 2024. This reversal denotes a shift from a net deferred tax asset position to a net deferred tax liability posture, which may have implications for future tax payments or asset realizability.

Deferred Income Tax Assets

The deferred income tax assets exhibit a downward trend from 2020 to 2022, falling from $1,410 million to $603 million. However, this decline reverses in the subsequent years, with a moderate recovery to $814 million in 2023 and further to $940 million in 2024. Despite this recovery, the value in 2024 remains below the initial level observed in 2020.

Deferred Income Tax Liabilities

Deferred income tax liabilities demonstrate a general upward trajectory throughout the period. Starting at $684 million in 2020, the liabilities first show a small increase to $726 million in 2021, followed by a marked and substantial rise in 2022, reaching $1,956 million. The trend persists with further increases to $2,335 million in 2023 and $2,517 million in 2024. This reflects an overall growth of more than threefold from 2020 to 2024.

The financial data over the five-year period exhibits several notable trends in the reported and adjusted figures for assets, liabilities, stockholders’ deficit, and net earnings.

Total Assets

Reported total assets decreased from 44,815 million USD in 2020 to 41,290 million USD in 2021, followed by a significant increase to 61,681 million USD in 2022. This upward trajectory continued into 2023, reaching 65,304 million USD, but then declined somewhat to 61,784 million USD by the end of 2024.

Adjusted total assets followed a similar pattern, starting at 43,405 million USD in 2020, dipping to 40,395 million USD in 2021, then markedly rising to 61,078 million USD in 2022 and peaking in 2023 at 64,490 million USD before a small reduction to 60,844 million USD in 2024. The adjustment lowers the asset base consistently compared to reported values but reflects the same overall trends.

Total Liabilities

Reported total liabilities showed a decline from 55,446 million USD in 2020 to 49,498 million USD in 2021, then surged sharply to 67,992 million USD in 2022. Liabilities continued to increase to 74,750 million USD in 2023 before receding to 71,654 million USD in 2024.

Adjusted total liabilities similarly declined from 54,762 million USD in 2020 to 48,772 million USD in 2021, increased significantly to 66,036 million USD in 2022, rose to 72,415 million USD in 2023, and slightly decreased to 69,137 million USD in 2024. The adjustment consistently reduces liabilities relative to reported amounts, yet the trend remains consistent.

Stockholders’ Deficit

Reported PMI stockholders’ deficit improved from -12,567 million USD in 2020 to -8,957 million USD in 2022 indicating reduced deficit, though this was followed by deterioration to -11,225 million USD in 2023 and a further decline to -11,750 million USD in 2024.

Adjusted stockholders’ deficit presents a more volatile trend, starting worse than reported at -13,293 million USD in 2020 but improving considerably to -7,604 million USD in 2022. This positive movement reversed in 2023 and 2024, where the deficit worsened to -9,704 million USD and -10,173 million USD, respectively, yet remained less negative than the levels observed in 2020.

Net Earnings Attributable to PMI

Reported net earnings rose from 8,056 million USD in 2020 to a peak of 9,109 million USD in 2021, then slightly declined to 9,048 million USD in 2022. Subsequent years showed a notable downward trend to 7,813 million USD in 2023 and further to 7,057 million USD in 2024.

Adjusted net earnings mirror this pattern, with an increase from 7,913 million USD in 2020 to 9,091 million USD in 2021, followed by gradual decline to 8,814 million USD in 2022, then sharper decreases in 2023 and 2024 reaching 7,483 million USD and 6,941 million USD respectively. Adjusted figures are consistently lower than reported earnings but closely track the same overall trend.

Overall, the data reveals a phase of asset and liability contraction in 2021 followed by substantial growth in 2022 and 2023, with a slight decline in 2024. The stockholders’ deficit shows some improvement through 2022 but deteriorates thereafter. Net earnings peaked in 2021 and have been declining since, indicating potential challenges to profitability in recent years. Adjusted figures generally maintain the pattern of reported data, offering a somewhat more conservative view of the company’s financial position and performance.

Net Profit Margin

The reported net profit margin experienced an increase from 28.08% in 2020 to a peak of 29% in 2021. Subsequently, there was a noticeable decline over the following years, dropping to 18.63% by 2024. The adjusted net profit margin followed a similar pattern, starting at 27.58% in 2020, slightly decreasing each year after 2021, and reaching 18.32% in 2024. This trend indicates a reduction in profitability over the analyzed period, with a more pronounced decline after 2021.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios showed an initial increase from 0.64 and 0.66 respectively in 2020 to 0.76 and 0.78 in 2021. However, this was followed by a significant decrease in 2022 to around 0.51-0.52, before slightly recovering to 0.61-0.62 in 2024. This suggests that asset efficiency peaked in 2021, deteriorated notably in 2022, and partially improved in the subsequent years but did not return to the earlier peak levels.

Return on Assets (ROA)

The reported ROA increased from 17.98% in 2020 to 22.06% in 2021, indicating improved profitability relative to assets. After 2021, ROA declined substantially to 11.42% by 2024. The adjusted ROA followed a similar trend, beginning slightly higher at 18.23% in 2020 and peaking at 22.51% in 2021, then decreasing to 11.41% in 2024. The consistency between reported and adjusted ROA underscores the declining asset profitability trend post-2021.

Unavailable Data

Data for reported and adjusted financial leverage, as well as reported and adjusted return on equity (ROE), were not available for analysis, limiting insights into the company's leverage and shareholder return characteristics over the period.

Overall Insights

Across the analyzed metrics, the year 2021 represents a peak period for profitability and asset utilization, as indicated by the highest net profit margins, total asset turnover, and ROA figures. Following 2021, there is a clear downward trend in profitability and asset efficiency, suggesting challenges in maintaining operational performance or external factors impacting margins and asset use. The partial recovery in total asset turnover after 2022 hints at some operational adjustments but does not fully restore earlier performance levels. The absence of financial leverage and ROE data restricts a comprehensive evaluation of financial structure and equity returns during the period.

The financial data reveals notable trends in both reported and adjusted net earnings attributable to the company over the five-year period. Reported net earnings experienced an increase from 8,056 million US dollars in 2020 to a peak of 9,109 million in 2021, followed by a slight decline to 9,048 million in 2022. Subsequently, there was a more pronounced decrease to 7,813 million in 2023 and further down to 7,057 million in 2024.

Adjusted net earnings follow a similar trajectory, rising from 7,913 million in 2020 to 9,091 million in 2021, then decreasing to 8,814 million in 2022. A more significant decline is observed in 2023, reaching 7,483 million, and continuing downward to 6,941 million in 2024. This pattern suggests that adjustments for reported earnings did not substantively alter the overall trend of earnings growth followed by decline.

In terms of profitability, the reported net profit margin shows a peak at 29.00% in 2021, increasing from 28.08% in 2020. This margin then declined steadily over the next three years, dropping to 28.49% in 2022, then more sharply to 22.21% in 2023, and finally to 18.63% in 2024. The adjusted net profit margin exhibits a comparable pattern, with a high of 28.95% in 2021 and a subsequent decline to 27.75% in 2022, followed by decreases to 21.27% in 2023 and 18.32% in 2024.

Overall, both earnings and profitability indicators peaked in 2021, with a decline evident in the following years through 2024. The adjusted figures closely mirror the reported metrics, indicating that deferred income tax adjustments had limited impact on altering the overall financial trends. The consistent downward movement in net profit margins over the last three years suggests increasing cost pressures or other factors negatively affecting profitability during this period.

Total Assets

There was an increase in total assets from 44,815 million US dollars at the end of 2020 to 61,681 million in 2022, indicating significant asset growth during that period. However, in 2023, total assets slightly increased further to 65,304 million, before declining to 61,784 million in 2024. The adjusted total assets show a similar pattern, with values closely tracking reported totals but slightly lower, suggesting minor adjustments for deferred income taxes or other items.

Total Asset Turnover

The total asset turnover ratio, which measures efficiency in using assets to generate sales, improved from 0.64 in 2020 to 0.76 in 2021. However, it dropped sharply to 0.51 in 2022, indicating reduced asset utilization amid the asset base increase. In 2023 and 2024, the ratio slightly recovered to 0.54 and 0.61 respectively, but did not return to previous peak levels. The adjusted turnover ratios mirror this trend with marginally higher values, reflecting the adjustments applied to total assets.

Overall Insight

The company experienced strong asset growth from 2020 through 2022, followed by stabilization and a slight decline in 2024. Meanwhile, efficiency in utilizing assets to generate revenue initially increased but then declined markedly in 2022, with only modest improvements thereafter. This pattern suggests that asset growth outpaced revenue generation capability during the middle years, requiring attention to improving asset utilization to maximize returns.

Total Assets

The reported total assets demonstrate significant volatility over the five-year period. After a decline from 44,815 million US dollars in 2020 to 41,290 million in 2021, there is a pronounced increase reaching 61,681 million in 2022. The upward trend continues into 2023, peaking at 65,304 million, before declining to 61,784 million in 2024. The adjusted total assets follow a similar trajectory, reflecting comparable fluctuations but consistently show slightly lower values than the reported figures.

Stockholders’ Deficit

The reported total PMI stockholders’ deficit improves from a deficit of 12,567 million in 2020 to 8,957 million in 2022, indicating a reduction in negative equity during this period. However, this trend reverses subsequently, with the deficit increasing again to 11,225 million in 2023 and further to 11,750 million in 2024. The adjusted figures mirror this pattern but reveal a somewhat less pronounced deficit reduction in the early years and a smaller increase thereafter, indicating the adjustments somewhat mitigate the reported stockholders’ deficit figures.

Financial Leverage

Data for both reported and adjusted financial leverage ratios are missing across all periods, preventing any direct analysis of leverage trends or associated risk changes over time.

General Trends and Insights

The company's asset base shows considerable expansion between 2021 and 2023, followed by a contraction in 2024, suggesting possible asset revaluation, disposals, or other adjustments impacting the balance sheet. Concurrently, the stockholders’ deficit follows a non-linear trend with initial improvement but subsequent deterioration, which could imply increased liabilities, retained losses, or equity withdrawals during the later years. The adjusted figures tend to moderate the extremes observed in reported data, indicating that adjustments for income tax effects or other factors impact the financial position but do not fundamentally alter the overall pattern.

The analyzed data reveals several notable trends regarding the financial performance and position of the company over the five-year period from 2020 to 2024.

Net Earnings

Reported net earnings attributable to the company increased from 8,056 million US dollars in 2020 to a peak of 9,109 million US dollars in 2021. This was followed by a slight decrease to 9,048 million in 2022, then a more pronounced decline over the subsequent two years, reaching 7,057 million in 2024. Adjusted net earnings showed a similar pattern, rising from 7,913 million in 2020 to 9,091 million in 2021, then steadily declining to 6,941 million in 2024. The adjustment between reported and adjusted net earnings is relatively small, suggesting limited impact of deferred income taxes on net earnings.

Stockholders’ Deficit

Reported total stockholders’ deficit fluctuated during the period, starting at -12,567 million US dollars in 2020 and improving (reducing the deficit) to -8,957 million by 2022. However, this trend reversed thereafter, with the deficit widening again to -11,225 million in 2023 and further to -11,750 million in 2024, indicating deterioration in the financial position from equity perspective in the last two years. Adjusted total stockholders’ deficit follows a somewhat similar trend but with greater fluctuations; it improved sharply from -13,293 million in 2020 to -7,604 million in 2022, indicating an enhanced adjusted equity position during the first three years, but then worsened to -10,173 million by 2024.

Return on Equity (ROE)

Data for both reported and adjusted ROE has not been provided, which limits direct assessment of profitability against shareholder equity. However, given the net earnings trends and the fluctuations in stockholders’ deficit, it is reasonable to infer that ROE might have experienced volatility, with potential weakening in recent years due to declining net earnings and increasing deficit.

Overall Insights

The company experienced a growth phase in earnings and equity adjustments up to 2021 and 2022, followed by a declining trend in both profitability and equity position in 2023 and 2024. The narrowing net earnings and increasing stockholders’ deficit in the latter years suggest potential challenges in maintaining financial stability and shareholder value. The minimal difference between reported and adjusted earnings suggests tax-related adjustments had limited effect on overall earnings figures during this period.

The financial data reflects several notable trends over the five-year period ending December 31, 2024. Both reported and adjusted net earnings attributable to the company have experienced fluctuations, with a peak in 2021 followed by a generally declining trend through 2024. Specifically, reported net earnings increased from US$8,056 million in 2020 to a high of US$9,109 million in 2021, slightly declined to US$9,048 million in 2022, and then decreased more substantially to US$7,813 million in 2023 and US$7,057 million in 2024. The adjusted net earnings exhibit a similar pattern, rising to US$9,091 million in 2021 before gradually decreasing to US$6,941 million by 2024.

In terms of total assets, both reported and adjusted figures follow the same general trend. Reported total assets dropped from US$44,815 million in 2020 to US$41,290 million in 2021, followed by a sharp increase to US$61,681 million in 2022 and further growth to US$65,304 million in 2023. However, in 2024, assets decreased to US$61,784 million. The adjusted total assets mirror this trajectory, with a decline between 2020 and 2021, substantial growth in 2022 and 2023, and a moderate decline in 2024.

Return on assets (ROA) for both reported and adjusted measures demonstrates a peak in 2021 at over 22%, indicating strong asset efficiency during that year. However, there is a pronounced downward trend beginning in 2022, with reported ROA falling to 14.67%, then continuing downward through 2023 and 2024 to 11.42%. Adjusted ROA follows a similar pattern, decreasing from 22.51% in 2021 to 11.41% in 2024. This suggests that despite the increase in total assets post-2021, the company's asset profitability has weakened notably.

Net Earnings Trends

Both reported and adjusted net earnings peaked in 2021, implying strong profitability during that year. However, subsequent years show a clear downward trajectory, potentially indicating challenges in maintaining earnings levels or increased costs affecting profitability.

Asset Growth and Fluctuations

The dip in assets in 2021 followed by a sharp increase in 2022 and 2023 suggests significant changes in asset base, possibly acquisitions or capital investments, with a slight reversal in 2024. Adjusted assets reflect similar movements, confirming consistency between reported and adjusted figures.

Declining Asset Efficiency

ROA statistics reveal that the sharp asset growth post-2021 did not translate into proportional earnings increases, as asset profitability declined. This may suggest lower returns on recent asset investments or increased asset base outpacing net earnings growth.

Overall, the data indicates a peak in profitability and efficiency in 2021 followed by an erosion in net earnings and asset returns through 2024, despite notable growth in the asset base. Monitoring the drivers behind decreasing ROA and earnings will be essential for addressing the declining financial performance in the recent period.