Stock Analysis on Net
Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Philip Morris International Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 1.70 1.82 2.01 1.82 2.03
Adjusted 1.75 1.87 2.02 1.83 2.05
Liquidity Ratio
Current Ratio
Reported 1.10 1.09 1.13 1.35 1.07
Adjusted 1.10 1.10 1.14 1.36 1.08
Solvency Ratios
Debt to Equity
Reported — — — — —
Adjusted — — — — —
Debt to Capital
Reported 1.66 1.59 1.65 1.54 1.77
Adjusted 1.52 1.43 1.49 1.42 1.49
Financial Leverage
Reported — — — — —
Adjusted — — — — —
Profitability Ratios
Net Profit Margin
Reported 10.59% 9.22% 9.91% 7.73% 9.30%
Adjusted 8.81% 11.14% 8.10% 8.77% 9.50%
Return on Equity (ROE)
Reported — — — — —
Adjusted — — — — —
Return on Assets (ROA)
Reported 17.98% 16.76% 19.88% 14.05% 18.91%
Adjusted 15.42% 20.79% 16.36% 16.05% 19.45%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Philip Morris International Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Philip Morris International Inc. adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Philip Morris International Inc. adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Philip Morris International Inc. adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Philip Morris International Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Philip Morris International Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Revenues including excise taxes 76,047  77,921  79,823  78,098  74,953 
Total assets 44,815  42,875  39,801  42,968  36,851 
Activity Ratio
Total asset turnover1 1.70 1.82 2.01 1.82 2.03
Adjusted
Selected Financial Data (US$ in millions)
Revenues including excise taxes 76,047  77,921  79,823  78,098  74,953 
Adjusted total assets2 43,428  41,742  39,506  42,710  36,626 
Activity Ratio
Adjusted total asset turnover3 1.75 1.87 2.02 1.83 2.05

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Total asset turnover = Revenues including excise taxes ÷ Total assets
= 76,047 ÷ 44,815 = 1.70

2 Adjusted total assets. See details »

3 2020 Calculation
Adjusted total asset turnover = Revenues including excise taxes ÷ Adjusted total assets
= 76,047 ÷ 43,428 = 1.75

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Philip Morris International Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 21,492  20,514  19,442  21,594  17,608 
Current liabilities 19,615  18,833  17,191  15,962  16,467 
Liquidity Ratio
Current ratio1 1.10 1.09 1.13 1.35 1.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 21,515  20,534  19,467  21,624  17,650 
Adjusted current liabilities3 19,478  18,693  17,124  15,891  16,416 
Liquidity Ratio
Adjusted current ratio4 1.10 1.10 1.14 1.36 1.08

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,492 ÷ 19,615 = 1.10

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 21,515 ÷ 19,478 = 1.10

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Philip Morris International Inc. adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Debt to Equity

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 31,536  31,045  31,759  34,339  29,067 
Total PMI stockholders’ deficit (12,567) (11,577) (12,459) (12,086) (12,688)
Solvency Ratio
Debt to equity1 — — — — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 32,243  31,808  32,416  35,058  29,659 
Adjusted total stockholders’ deficit3 (11,017) (9,493) (10,726) (10,337) (9,750)
Solvency Ratio
Adjusted debt to equity4 — — — — —

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to equity = Total debt ÷ Total PMI stockholders’ deficit
= 31,536 ÷ -12,567 = —

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ deficit. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ deficit
= 32,243 ÷ -11,017 = —

Adjusted Debt to Capital

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt 31,536  31,045  31,759  34,339  29,067 
Total capital 18,969  19,468  19,300  22,253  16,379 
Solvency Ratio
Debt to capital1 1.66 1.59 1.65 1.54 1.77
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 32,243  31,808  32,416  35,058  29,659 
Adjusted total capital3 21,226  22,315  21,690  24,721  19,909 
Solvency Ratio
Adjusted debt to capital4 1.52 1.43 1.49 1.42 1.49

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 31,536 ÷ 18,969 = 1.66

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 32,243 ÷ 21,226 = 1.52

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Philip Morris International Inc. adjusted debt-to-capital ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Financial Leverage

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 44,815  42,875  39,801  42,968  36,851 
Total PMI stockholders’ deficit (12,567) (11,577) (12,459) (12,086) (12,688)
Solvency Ratio
Financial leverage1 — — — — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 43,428  41,742  39,506  42,710  36,626 
Adjusted total stockholders’ deficit3 (11,017) (9,493) (10,726) (10,337) (9,750)
Solvency Ratio
Adjusted financial leverage4 — — — — —

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 44,815 ÷ -12,567 = —

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ deficit. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ deficit
= 43,428 ÷ -11,017 = —

Adjusted Net Profit Margin

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 8,056  7,185  7,911  6,035  6,967 
Revenues including excise taxes 76,047  77,921  79,823  78,098  74,953 
Profitability Ratio
Net profit margin1 10.59% 9.22% 9.91% 7.73% 9.30%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 6,696  8,680  6,464  6,853  7,124 
Revenues including excise taxes 76,047  77,921  79,823  78,098  74,953 
Profitability Ratio
Adjusted net profit margin3 8.81% 11.14% 8.10% 8.77% 9.50%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
Net profit margin = 100 × Net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 8,056 ÷ 76,047 = 10.59%

2 Adjusted net earnings. See details »

3 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Revenues including excise taxes
= 100 × 6,696 ÷ 76,047 = 8.81%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Philip Morris International Inc. adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 8,056  7,185  7,911  6,035  6,967 
Total PMI stockholders’ deficit (12,567) (11,577) (12,459) (12,086) (12,688)
Profitability Ratio
ROE1 — — — — —
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 6,696  8,680  6,464  6,853  7,124 
Adjusted total stockholders’ deficit3 (11,017) (9,493) (10,726) (10,337) (9,750)
Profitability Ratio
Adjusted ROE4 — — — — —

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 8,056 ÷ -12,567 = —

2 Adjusted net earnings. See details »

3 Adjusted total stockholders’ deficit. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total stockholders’ deficit
= 100 × 6,696 ÷ -11,017 = —

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to PMI 8,056  7,185  7,911  6,035  6,967 
Total assets 44,815  42,875  39,801  42,968  36,851 
Profitability Ratio
ROA1 17.98% 16.76% 19.88% 14.05% 18.91%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 6,696  8,680  6,464  6,853  7,124 
Adjusted total assets3 43,428  41,742  39,506  42,710  36,626 
Profitability Ratio
Adjusted ROA4 15.42% 20.79% 16.36% 16.05% 19.45%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

1 2020 Calculation
ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 8,056 ÷ 44,815 = 17.98%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 6,696 ÷ 43,428 = 15.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Philip Morris International Inc. adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.