Common-Size Income Statement
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Philip Morris International Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2008
- Total Asset Turnover since 2008
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Philip Morris International Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends in the company’s financial performance between 2021 and 2025. A fluctuating pattern is observed in profitability, with significant shifts in key expense categories and income sources impacting net earnings.
- Revenue and Gross Profit
- Net revenues are consistently represented as 100% throughout the period. Cost of sales as a percentage of net revenues increased from -31.94% in 2021 to -36.65% in 2023, before decreasing to -32.88% in 2025. Consequently, gross profit as a percentage of net revenues declined from 68.06% in 2021 to a low of 63.35% in 2023, then recovered to 67.12% in 2025. This suggests potential pressures on input costs initially, followed by improved cost management or pricing strategies.
- Operating Expenses
- Marketing, administration, and research costs steadily increased as a percentage of net revenues, rising from -26.75% in 2021 to -30.38% in 2025. Impairment of goodwill was not present in 2021 and 2022, then represented -1.89% of net revenues in 2023, and reappeared as -0.10% in 2025. These increases in operating expenses contributed to a decline in operating income from 41.32% in 2021 to 32.85% in 2023, with a partial recovery to 36.64% in 2025.
- Interest and Other Income/Expenses
- Interest expense as a percentage of net revenues increased from -2.35% in 2021 to -4.65% in 2024, before decreasing to -3.90% in 2025. Interest income increased from 0.35% to 1.64% in 2024, then slightly decreased to 1.53% in 2025. Net interest expense followed a similar pattern, increasing to -3.02% in 2023 and 2024, then decreasing to -2.38% in 2025. Pension and other employee benefit costs remained relatively stable, representing a small percentage of net revenues throughout the period.
- Non-Operating Items and Net Earnings
- Earnings before income taxes experienced a decline from 38.95% in 2021 to 29.71% in 2023, followed by a recovery to 34.15% in 2025. A significant impairment related to the RBH equity investment impacted earnings in 2024, representing -6.11% of net revenues. Equity investments and securities income, net, increased from 0.47% in 2021 to 1.73% in 2025. Net earnings as a percentage of net revenues decreased substantially from 30.92% in 2021 to 19.81% in 2024, before rebounding to 29.15% in 2025. Net earnings attributable to PMI mirrored this trend, declining to 18.63% in 2024 and recovering to 27.92% in 2025.
Overall, the period demonstrates a challenging environment in 2023 and 2024, with increased costs and impairments impacting profitability. However, the data suggests a positive trend in 2025, with improvements in gross profit, reduced interest expense, and increased income from equity investments contributing to a recovery in net earnings.