Philip Morris International Inc. (NYSE:PM)

The analysis of the available financial data reveals several notable trends for the Return on Assets (ROA) over the given period, while data for Financial Leverage and Return on Equity (ROE) is not provided and therefore cannot be assessed.

Return on Assets (ROA)

The ROA values begin to appear from the quarter ending March 31, 2020, with an initial reported figure of 17.98%. From this point, there is a clear upward trend until the end of 2021, reaching a peak of approximately 22.18% in the third quarter of 2022, indicating improved asset efficiency and profitability during this period.

Post-peak, a significant decline is observed starting in the first quarter of 2023, dropping to 14.67% and continuing a downward trajectory reaching a low of 11.42% by the first quarter of 2025. This decline suggests a reduction in the company’s ability to generate profits from its assets during the last two years of the dataset.

Notably, there is a slight recovery observed in the quarters of 2024, where the ROA increases modestly from 11.96% in Q1 to 14.7% in Q4, before decreasing again to 11.42% by Q1 2025. This indicates periods of volatility and possibly the impact of underlying operational or market factors affecting asset returns.

Overall, the trend in ROA points to a strong performance phase through 2020 and 2021, followed by a marked decline beginning in early 2023. The reasons behind the decline are not directly available from the data but suggest changes in operational efficiency, asset base, or market conditions that warrant further investigation.

Net Profit Margin

The net profit margin exhibits an overall declining trend over the periods presented. Beginning at a high point in the early quarters of 2020 and 2021 with values around 28% to 29.7%, the margin gradually decreases through 2022 and 2023, reaching lows near 22%. This decline stabilizes somewhat towards the end of 2023 and into 2024, with margins rebounding slightly to approximately 24% to 26.4%, before dropping again to under 20% in the final reported quarters. The fluctuations indicate challenges in maintaining profitability relative to revenue but also suggest some recovery attempts during mid-2024.

Asset Turnover

Asset turnover shows notable variation across the periods. Early in the timeline (2020-early 2022), the ratio remains relatively stable and higher, fluctuating between 0.64 and 0.78, indicating consistent efficiency in using assets to generate sales. However, starting in late 2022, the asset turnover ratio decreases markedly to approximately 0.51 to 0.56, reflecting reduced asset efficiency. A mild improvement occurs toward the end of the series, with ratios increasing again up to around 0.61 but slightly dropping afterward. This pattern signals less consistent asset utilization effectiveness in recent quarters compared to earlier periods.

Financial Leverage

No data points are reported for financial leverage, precluding any analysis or trend identification for this metric over the observed periods.

Return on Equity (ROE)

Return on equity is unavailable for all periods, so no conclusions can be drawn regarding trend or performance relating to shareholder returns from this financial metric.

The analysis of the quarterly financial ratios over the observed periods reveals several noteworthy trends and fluctuations.

Net Profit Margin (%)

The Net Profit Margin shows an initial increase from 28.08% in March 2021, peaking around June 2021 at 29.69%, followed by a gradual decline through to December 2023 where it reaches a lower point of 22.21%. A minor recovery occurs in the subsequent quarters, with percentages rising to 26.42% by September 2024. However, this is followed by another drop down to 18.63% by December 2024 and a slight increase to 19.8% in March 2025. Overall, the margin exhibits volatility with a downward tendency after mid-2021.

Asset Turnover (ratio)

Asset Turnover improved steadily from 0.64 in March 2021 to a peak of 0.78 in December 2021. This ratio then experiences a significant decrease in early 2022 to 0.51 and remains relatively stable with minor increases up to 0.61 in March 2025. The mid-term dip followed by gradual recovery suggests shifts in asset efficiency or changes in asset base relative to sales.

Return on Assets (ROA) (%)

ROA follows a similar trajectory as Net Profit Margin, rising from 17.98% in March 2021 to a high of 22.18% in September 2021. From late 2021 onward, ROA declines consistently, hitting its lowest point at 11.42% in December 2024, with a marginal rise to 11.68% in March 2025. This downward trend reflects reduced profitability relative to the company's asset base in recent periods.

In summary, while the firm exhibited strong profitability and asset utilization in 2021, the subsequent quarters through 2024 show a general weakening in profitability metrics and asset returns, with some indicators of stabilization or slight improvement towards early 2025. The fluctuation in asset turnover indicates variability in operational efficiency or asset management during this period.