Philip Morris International Inc. (NYSE:PM)

Current assets and adjusted current assets for the period exhibited a generally increasing trend. While the figures are very close, a consistent difference exists between reported current assets and adjusted current assets throughout the observed timeframe.

Overall Trend

Both current assets and adjusted current assets demonstrate growth from 2021 to 2025. Current assets increased from US$17,717 million in 2021 to US$24,363 million in 2025, representing a cumulative increase of approximately 37.8%. Adjusted current assets followed a similar pattern, rising from US$17,787 million to US$24,386 million, a cumulative increase of roughly 37.1%.

Year-over-Year Changes

The year-over-year growth in both metrics was not consistent. The largest increase occurred between 2024 and 2025, with current assets growing by US$4,193 million and adjusted current assets growing by US$4,170 million. The smallest increase was observed between 2022 and 2023, with increases of US$84 million for current assets and US$80 million for adjusted current assets.

Adjustment Variance

A consistent difference is present between the reported current assets and the adjusted current assets. In each year, adjusted current assets are slightly higher than reported current assets. This difference ranges from US$70 million in 2021 to US$23 million in 2025. The decreasing difference suggests a potential convergence of the two figures, or a change in the nature of the adjustments being made.

The consistent positive adjustment to current assets suggests the presence of items that are not initially recognized as current assets under standard accounting practices, but are included after adjustment. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the company’s financial position.

Total assets exhibited a fluctuating pattern over the five-year period. Initially, a substantial increase is noted between 2021 and 2022, followed by a more moderate rise through 2023. A subsequent decrease occurred in 2024, with a recovery and further increase observed in 2025.

Overall Trend

The reported total assets demonstrate volatility. While an overall upward trend is apparent when comparing the beginning and end of the period, intermediate years show considerable variation. The largest single-year increase occurred between 2021 and 2022, growing from US$41,290 million to US$61,681 million. The largest single-year decrease occurred between 2023 and 2024, falling from US$65,304 million to US$61,784 million.

Adjusted Total Assets Trend

The trend in adjusted total assets mirrors that of total assets, though the absolute values are consistently lower. The adjusted figures also show a significant increase from 2021 to 2022, a more gradual increase from 2022 to 2023, a decrease from 2023 to 2024, and a subsequent increase from 2024 to 2025. The difference between total assets and adjusted total assets remains relatively consistent across the observed period.

Difference Between Reported and Adjusted Values

The difference between total assets and adjusted total assets ranged from approximately US$825 million in 2021 to approximately US$724 million in 2025. This suggests a consistent, though not substantial, level of adjustments being made to the initially reported total asset value each year. The relatively stable difference indicates a consistent application of the adjustment methodology.

The fluctuations in both total and adjusted total assets warrant further investigation to understand the underlying drivers. Potential areas of inquiry include changes in acquisition activity, asset revaluation, or the impact of foreign currency translation.

Total liabilities exhibited a generally increasing trend over the five-year period, though with some fluctuation. Reported total liabilities increased from US$49,498 million in 2021 to US$67,992 million in 2022, representing a substantial rise. This was followed by a further increase to US$74,750 million in 2023. A decrease was then observed in 2024, with total liabilities falling to US$71,654 million, before rising again to US$77,213 million in 2025.

Adjusted Total Liabilities Trend

The trend in adjusted total liabilities largely mirrors that of reported total liabilities. Adjusted total liabilities increased from US$48,630 million in 2021 to US$65,996 million in 2022. Subsequent increases were noted in 2023, reaching US$72,386 million, followed by a decrease to US$69,109 million in 2024. The final year, 2025, saw an increase to US$75,033 million.

The difference between reported and adjusted total liabilities remained relatively consistent across the observed period. The adjustments made consistently resulted in lower total liability figures. The magnitude of the adjustment ranged from approximately US$868 million in 2021 to approximately US$2,180 million in 2025. This suggests a systematic application of adjustments, potentially related to specific accounting treatments or reclassifications.

Year-over-Year Changes

The largest year-over-year increase in both reported and adjusted total liabilities occurred between 2021 and 2022. The increase was approximately US$18,500 million for reported liabilities and US$17,366 million for adjusted liabilities. The decrease between 2023 and 2024 was comparatively smaller, at approximately US$3,100 million for both reported and adjusted figures. The final year, 2024 to 2025, showed an increase of approximately US$5,559 million in reported liabilities and US$5,924 million in adjusted liabilities.

The fluctuations in total liabilities, both reported and adjusted, warrant further investigation to understand the underlying drivers. The consistent adjustments suggest a need to examine the nature of these adjustments and their impact on the overall financial position.

The reported stockholders’ deficit experienced fluctuations between 2021 and 2025. A review of the figures indicates a notable difference between the initially reported total stockholders’ deficit and the adjusted total stockholders’ deficit over the five-year period.

Total Stockholders’ Deficit Trend

The total stockholders’ deficit began at -10,106 US$ millions in 2021, decreased to -8,957 US$ millions in 2022, then increased to -11,225 US$ millions in 2023. This was followed by a further increase to -11,750 US$ millions in 2024, before decreasing to -9,994 US$ millions in 2025. Overall, the period demonstrates volatility, with a peak deficit in 2024 and a closing value closer to the 2021 level.

Adjusted Stockholders’ Deficit Trend

The adjusted total stockholders’ deficit started at -8,165 US$ millions in 2021 and significantly decreased to -4,876 US$ millions in 2022. It then increased to -7,817 US$ millions in 2023, followed by a slight increase to -8,218 US$ millions in 2024. Finally, it decreased to -7,072 US$ millions in 2025. The adjusted deficit shows a more pronounced decrease in 2022, but also exhibits increases in subsequent years, though not to the same extent as the total deficit.

Difference Between Total and Adjusted Deficits

The difference between the total and adjusted stockholders’ deficits varied annually. In 2021, the difference was approximately -2,000 US$ millions. This difference narrowed considerably in 2022 to approximately -4,000 US$ millions. The gap widened again in 2023 to approximately -3,400 US$ millions, and further to approximately -3,500 US$ millions in 2024, before narrowing to approximately -2,900 US$ millions in 2025. This suggests that adjustments consistently reduce the magnitude of the reported deficit, and the impact of these adjustments has fluctuated over time.

The adjustments made to stockholders’ equity appear to have a material impact on the reported financial position. The decreasing trend in the adjusted deficit from 2021 to 2022 is particularly noteworthy, indicating a potentially significant positive effect from the adjustments made during that period. The subsequent fluctuations suggest that the nature or magnitude of these adjustments has changed over the observed timeframe.

The capitalization structure of the entity under review demonstrates notable shifts between 2021 and 2025. Reported debt increased substantially from 2021 to 2023, peaking at US$47,909 million, before experiencing a slight decline in 2024 and a further increase in 2025. Simultaneously, the reported stockholders’ deficit fluctuated, becoming more negative before showing improvement in the final year of the period. These movements resulted in a corresponding increase in total reported capital, peaking in 2023 before a decrease in 2024 and a recovery in 2025.

Adjustments to the capitalization structure reveal a similar pattern, though with differing magnitudes. Adjusted total debt mirrored the trend of reported debt, with a consistent increase over the five-year period. The adjusted stockholders’ deficit exhibited a more pronounced improvement, becoming less negative from 2021 to 2025. Consequently, adjusted total capital also increased over the period, though with some year-over-year variation.

Debt Trends

Both reported and adjusted total debt show an overall increasing trend. The difference between reported and adjusted debt remains relatively consistent across the period, suggesting the adjustments relate to consistent factors. The largest increase in debt occurred between 2021 and 2022, with subsequent increases being more moderate.

Stockholders’ Deficit Trends

The stockholders’ deficit, in both reported and adjusted terms, demonstrates a complex pattern. While initially negative and increasing in magnitude, the adjusted deficit shows a more significant improvement than the reported deficit, particularly between 2022 and 2025. This suggests the adjustments positively impact the equity position.

Capital Trends

Total capital, both reported and adjusted, generally increased over the period. The adjusted total capital consistently exceeds the reported total capital, indicating that the adjustments contribute to a higher overall capital base. The growth rate of adjusted capital appears to be more stable than that of reported capital.

The adjustments to the capitalization structure appear to consistently improve the reported equity position and overall capital base. The consistent difference between reported and adjusted figures suggests the adjustments are related to recurring items. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the financial position of the entity.

Net earnings attributable to PMI exhibited volatility over the five-year period. Initially decreasing from 2021 to 2023, followed by an increase in 2024 and a substantial rise in 2025. Adjusted net earnings demonstrated a similar pattern of fluctuation, though with differing magnitudes and timing.

Net Earnings Trend

Net earnings attributable to PMI began at US$9,109 million in 2021, decreased to US$9,048 million in 2022, and then experienced a more significant decline to US$7,813 million in 2023. A moderate recovery was observed in 2024, with earnings reaching US$7,057 million. The most substantial change occurred in 2025, with net earnings increasing considerably to US$11,348 million.

Adjusted Net Earnings Trend

Adjusted net earnings started at US$11,147 million in 2021, decreasing to US$9,253 million in 2022. A substantial decrease was noted in 2023, falling to US$5,360 million. A recovery was seen in 2024, with adjusted net earnings rising to US$7,653 million. Similar to net earnings, 2025 showed a significant increase, reaching US$10,076 million.

Relationship Between Net and Adjusted Earnings

In 2021 and 2022, adjusted net earnings were notably higher than reported net earnings. However, this difference narrowed in 2023 and 2024. In 2025, while both metrics increased, the gap between adjusted and reported net earnings remained substantial, indicating significant adjustments were made to arrive at the adjusted figure.

The divergence between net earnings and adjusted net earnings suggests the presence of recurring non-cash items or specific accounting adjustments impacting the reported results. The magnitude of these adjustments varied across the period, with the largest impact observed in 2023 and 2025. Further investigation into the nature of these adjustments would be necessary to fully understand their implications.