Philip Morris International Inc. (NYSE:PM)

Current assets

The current assets exhibit a decreasing trend from 21,492 million US dollars at the end of 2020 down to 17,717 million US dollars by the end of 2021. Subsequently, there is a recovery phase, with current assets increasing to 19,619 million in 2022, remaining relatively stable in 2023 at 19,755 million, and showing a modest rise to 20,170 million by the end of 2024. This pattern indicates a significant dip in the initial year followed by a steady recovery over the next three years.

Adjusted current assets

Adjusted current assets closely mirror the pattern observed in current assets. There is a decline from 21,515 million US dollars at the end of 2020 to 17,787 million in 2021, followed by a consistent increase through 2022 to 19,661 million, then to 19,834 million in 2023, and finally to 20,217 million in 2024. The adjusted figures are marginally higher than the unadjusted current assets throughout the period, suggesting minor adjustments that slightly increase the reported liquidity position.

The analysis of the annual financial data reveals notable trends in the total assets and adjusted total assets over the five-year period ending December 31, 2024.

Total assets

Total assets experienced a decline from US$44,815 million in 2020 to US$41,290 million in 2021, reflecting a contraction during this period. Subsequently, there was a significant increase in 2022, with total assets rising to US$61,681 million. This upward trend continued moderately into 2023 when total assets reached US$65,304 million. However, in 2024, total assets decreased again to US$61,784 million. Overall, the total assets show a pattern of initial decline, followed by substantial growth, and a slight pullback in the final year.

Adjusted total assets

The adjusted total assets follow a similar trend to total assets throughout the timeframe. Starting at US$43,428 million in 2020, there is a decrease to US$40,465 million in 2021. A strong recovery occurs in 2022, increasing adjusted assets to US$61,120 million. The growth continues in 2023 to US$64,569 million, followed by a decrease to US$60,891 million in 2024. These movements closely mirror those observed in total assets, indicating consistent adjustments across the reporting periods.

The overall pattern suggests that the company experienced a dip in asset values in 2021, which was followed by robust expansion in 2022 and 2023. The decrease in 2024 indicates some contraction or revaluation after a period of growth. Despite these fluctuations, both total and adjusted total assets at the end of 2024 remain substantially higher than their 2020 levels, highlighting an overall expansion of the company's asset base across the five-year span.

Current Liabilities

The current liabilities showed a slight decrease from 19,615 million US dollars in 2020 to 19,255 million US dollars in 2021. However, there was a significant increase in 2022, reaching 27,336 million US dollars. This elevated level of current liabilities was somewhat sustained in 2023, with a slight decrease to 26,383 million US dollars. In 2024, current liabilities decreased further to 22,915 million US dollars, indicating a trend towards reduction after the peak in 2022.

Adjusted Current Liabilities

Adjusted current liabilities followed a similar trend to current liabilities. There was a minor decrease from 19,478 million US dollars in 2020 to 19,142 million US dollars in 2021. This was followed by a strong rise to 27,232 million US dollars in 2022. The adjusted figure then slightly declined to 26,303 million US dollars in 2023 and further to 22,839 million US dollars in 2024. The adjustments appear to have a consistent relationship with the reported current liabilities, with both sets of figures reflecting a marked increase in 2022 followed by a gradual reduction.

The annual financial data reveal notable fluctuations in both total liabilities and adjusted total liabilities over the five-year period examined. These changes provide insight into the company's evolving financial obligations and adjustments applied to its liabilities.

Total Liabilities

From the end of 2020 to the end of 2021, total liabilities decreased significantly from approximately $55.4 billion to $49.5 billion. However, this downward trend was reversed in 2022, with liabilities rising sharply to about $68.0 billion, representing a substantial increase. The upward momentum continued into 2023, reaching approximately $74.8 billion, but a modest reduction to $71.7 billion was observed in 2024. Overall, the liability levels in 2024 remain higher than the initial value reported in 2020, indicating increased leverage or obligations during the latter years.

Adjusted Total Liabilities

The adjusted total liabilities followed a similar pattern to total liabilities but consistently reported slightly lower figures. Starting at about $54.4 billion in 2020, there was a decrease to roughly $48.5 billion in 2021. Following that, the adjustments saw a marked increase in 2022 to nearly $65.9 billion, with further growth to about $72.3 billion in 2023. In 2024, adjusted liabilities decreased to approximately $69.0 billion. Despite these fluctuations, the adjusted liabilities remained consistently below the unadjusted total liabilities, reflecting the impact of specific adjustments made to the reported liabilities.

Trend Analysis

The data indicate a period of liability reduction in 2021, followed by a substantial increase over the next two years, which could be indicative of expansion, increased borrowing, or other financial strategies impacting the company’s obligations. The slight reduction in 2024 may suggest a stabilization or beginning of deleveraging efforts. The persistent gap between total and adjusted liabilities suggests ongoing accounting or financial adjustments relevant to the company’s reporting practices.

Total PMI stockholders’ deficit

Over the period from 2020 to 2024, the total stockholders’ deficit exhibits a fluctuating trend. Initially, the deficit decreased significantly from -12,567 million US dollars in 2020 to -8,957 million US dollars in 2022, indicating a reduction in negative equity. However, this improvement was followed by a reversal from 2022 onwards, with the deficit increasing again to -11,225 million in 2023 and further to -11,750 million in 2024. This suggests a recent deterioration in the company’s financial position from an equity perspective.

Adjusted total stockholders’ deficit

The adjusted total stockholders’ deficit shows a somewhat similar trajectory but with less severity. From 2020 to 2022, the deficit improved markedly, declining from -11,017 million US dollars to -4,772 million US dollars, reflecting a substantial reduction in adjusted negative equity. However, subsequent years saw a regression with the deficit rising to -7,737 million in 2023 and reaching -8,142 million in 2024. This pattern indicates that after notable progress in improving adjusted equity, the company experienced a setback in the last two years.

Overall insights

Both total and adjusted stockholders’ deficits generally trend downward from 2020 through 2022, indicating an improving equity position during this period. In contrast, 2023 and 2024 demonstrate a reversal with increasing deficits, suggesting challenges or changes impacting liquidity, liabilities, or valuation factors that adversely affect shareholder equity. The divergence between total and adjusted deficits—with adjusted figures consistently less negative—implies that certain adjustments provide a more favorable view of equity, though both measures show deterioration in the latest years examined. This fluctuation highlights volatility and the need for further analysis into underlying causes such as operational results, debt structure, or asset valuation changes driving these equity adjustments.

Total Reported Debt

The total reported debt showed a decreasing trend from 31,536 million US dollars at the end of 2020 to 27,806 million in 2021. However, there was a significant increase in 2022 to 43,123 million, followed by a continued rise in 2023 to 47,909 million. In 2024, the debt slightly declined to 45,695 million. Overall, this indicates a substantial increase in reported debt over the five-year period despite an initial decrease.

Total PMI Stockholders’ Deficit

The stockholders’ deficit remained negative throughout the period, indicating continual excess liabilities over assets. The deficit improved from -12,567 million in 2020 to -8,957 million in 2022, showing a reduction in deficit. However, it worsened again, reaching -11,750 million in 2024 after a temporary increase in 2023 to -11,225 million, highlighting some financial instability in equity positions towards the end of the period.

Total Reported Capital

Total reported capital declined from 18,969 million in 2020 to 17,700 million in 2021, then surged to 34,166 million in 2022, followed by modest growth to 36,684 million in 2023. There was a decrease in 2024 to 33,945 million. This pattern suggests a significant capital restructuring or revaluation event around 2022, with capital stabilizing at a higher level than the initial years.

Adjusted Total Debt

Adjusted total debt mirrored the reported debt trend closely, starting at 32,243 million in 2020, declining to 28,342 million in 2021, then sharply increasing to 43,737 million in 2022 and 48,562 million in 2023. A decrease to 46,299 million occurred in 2024. This adjusted measure confirms the noticeable rise in financial leverage over the period, particularly post-2021.

Adjusted Total Stockholders’ Deficit

The adjusted stockholders’ deficit showed improvement from -11,017 million in 2020 to -4,772 million in 2022, suggesting efforts to strengthen equity. Nonetheless, the deficit worsened subsequently, reaching -8,142 million in 2024 after a decline to -7,737 million in 2023. This fluctuation indicates challenges in maintaining consistent equity growth despite initial improvements.

Adjusted Total Capital

Adjusted total capital decreased slightly from 21,226 million in 2020 to 20,290 million in 2021, then significantly increased to 38,965 million in 2022 and further to 40,825 million in 2023, before diminishing to 38,157 million in 2024. The capital increase from 2021 to 2023 aligns with corresponding debt increases, suggesting capital expansion alongside higher leverage, followed by a modest correction in 2024.

The financial data over the five-year period reveals several notable trends in the earnings of the company.

Net Earnings Attributable to PMI (US$ in millions)

The net earnings showed a general decline after peaking in 2021 at 9,109 million US dollars. Starting from 8,056 million in 2020, net earnings increased by approximately 13% in 2021 but then experienced a decline in the following years. By 2023, the net earnings had decreased to 7,813 million and further dropped to 7,057 million in 2024. This represents an overall downward trend from the 2021 peak, indicating some challenges in maintaining profitability.

Adjusted Net Earnings (US$ in millions)

Adjusted net earnings exhibited greater volatility compared to net earnings. After a rise from 6,696 million in 2020 to a peak of 11,123 million in 2021, adjusted earnings fell sharply to 9,244 million in 2022 and decreased substantially to 5,336 million in 2023. A recovery appeared in 2024 with adjusted earnings increasing to 7,649 million, although this value remains below the highs observed in 2021 and 2022. This fluctuation suggests significant adjustments impacting earnings, potentially driven by one-off items or non-operating factors.

Overall, while net earnings declined steadily after 2021, adjusted net earnings showed greater variability with a sharp decrease in 2023 followed by a partial rebound in 2024. The divergence between net and adjusted earnings, especially in the last two years, may warrant further investigation into the nature of adjustments made and the underlying operational performance. The data highlights the importance of analyzing both reported and adjusted figures to gain a more nuanced understanding of financial health and earnings quality over time.