Philip Morris International Inc. (NYSE:PM)

The analysis of the quarterly financial data reveals significant trends in the company's return on assets (ROA) over the observed periods.

Return on Assets (ROA)

The ROA data is available starting from March 31, 2020, with initial values unavailable for the earliest quarters. From March 31, 2020, the ROA initially shows a strong performance, with values reaching above 21% consistently in the year 2021. Specifically, from March 31, 2021, through December 31, 2021, the ROA remained relatively stable, fluctuating slightly above 21% but close to 22%, indicating robust asset efficiency during that period.

However, starting in 2022, a notable decline in ROA is observed. From March 31, 2022, to December 31, 2022, the values drop from around 14.67% to 12.74%. This downward trend continues into 2023, where ROA reaches a low near 11.96% by March 31, 2023. A marginal recovery follows through the second and third quarters of 2023, with ROA edging slightly upward to approximately 13.38% by September 30, 2023.

Entering the latter part of 2023 and into 2024, ROA experiences a moderate improvement again, reaching about 14.7% by December 31, 2024. However, there is another decline observed in early 2025, with ROA dropping back to roughly 11.42% by March 31, 2025. A slight increase is noted in subsequent quarters, ending at approximately 12.02% in June 30, 2025.

Overall, the ROA exhibits a pattern of initial strong profitability and asset utilization, followed by a pronounced dip through 2022 and early 2023. Partial recovery phases are evident in late 2023 and 2024, but the metric does not return to the earlier peak levels observed in 2021 within the given timeframe.

Financial Leverage

No data is available for financial leverage across all reported periods, thus analysis or inference cannot be made for this metric.

Return on Equity (ROE)

Similarly, return on equity figures are not reported for any of the quarters, precluding any assessment or trend analysis in this regard.

The analysis of the quarterly financial data reveals discernible trends in net profit margin and asset turnover across the reviewed periods.

Net Profit Margin

The net profit margin begins to be recorded from the end of Q1 2021, initially at 28.08%, and demonstrates a slight upward trend peaking at 29.69% in Q2 2021. Thereafter, the margin slightly declines and stabilizes around the high 20s through the remainder of 2021 and 2022. Starting from Q1 2023, a downward trajectory is evident, with the margin dipping to the low twenties by Q4 2023, reaching its lowest point of 18.63% in Q1 2025. A modest recovery is noted in subsequent quarters up to Q2 2025 where the margin rises to 21.08%. Overall, this suggests a weakening profitability trend after mid-2022, with some recent improvement but still below earlier highs.

Asset Turnover

Asset turnover is tracked from Q1 2021, beginning at 0.64 and experiencing an upward movement, peaking at 0.78 during Q3 and Q4 2021. However, from Q1 2022 onwards, the ratio experiences a significant decline to approximately 0.51-0.52 in early 2023. The ratio then shows a gradual and steady increase from mid-2023 through 2025, reaching 0.61 in Q1 2025 before a slight decline to 0.57 by Q2 2025. This pattern indicates fluctuating operational efficiency, with an initial improvement, a setback in 2022 and early 2023, and a gradual recovery in more recent periods.

Financial Leverage and Return on Equity (ROE)

There is no available data for financial leverage or return on equity across the periods under review; thus, no analysis can be provided for these metrics.

In summary, the data shows that the company’s profitability as indicated by net profit margin has weakened since 2023 with some recovery in 2025, while operational efficiency as suggested by asset turnover exhibits fluctuating but generally upward trends after a low point in early 2023. The absence of leverage and ROE data limits a more comprehensive view of financial performance and risk.

The financial performance metrics reveal observable trends over the analyzed periods. The net profit margin initially shows a high and relatively stable value, fluctuating around 28% to 29% from March 2021 through December 2022, before beginning a gradual decline starting in early 2023. This downward trend continues until it reaches a low point around 22.21% in December 2023. Subsequently, there is some recovery, with the margin increasing to 26.42% by September 2024; however, it again declines sharply afterward, ending near 21.08% by June 2025.

Asset turnover ratio highlights a different pattern, initially increasing steadily from 0.64 in March 2021 to 0.78 by December 2022, indicating improved efficiency in using assets to generate revenue during this period. After December 2022, the ratio drops significantly to around 0.51-0.54 through 2023, reflecting reduced asset utilization efficiency. However, from early 2024 onward, the ratio shows a moderate recovery, rising gradually to approximately 0.61 by March 2025 before a slight decline in June 2025.

Return on assets (ROA) exhibits a similar trajectory to the net profit margin, with strong performance values ranging from 17.98% to above 22% between March 2021 and December 2022. Following this period, there is a noticeable decline in ROA through 2023, reaching a low of about 11.96% by March 2024. A modest improvement follows from this low point, with ROA increasing gradually to around 14.7% in December 2024. Toward the last measured periods, ROA declines again slightly, ending near 12.02% by June 2025.

Net Profit Margin

Shows initial stability and high profitability, followed by a consistent decline through 2023, a partial recovery in 2024, and another dip toward mid-2025.

Asset Turnover

Improves steadily until late 2022, then falls in 2023, with partial recovery thereafter but not reaching previous peak levels by mid-2025.

Return on Assets (ROA)

Strong performance through 2022, subsequent decline in 2023, moderate rebound in late 2024, and renewed decline by mid-2025.

Overall, the data indicates that the company experienced robust profitability and asset efficiency through 2022, followed by a period of performance deterioration during 2023. Although some recovery is evident in 2024, the upward momentum does not fully restore earlier peak levels, and volatility persists into 2025. This pattern suggests challenges in maintaining profit margins and asset utilization efficiency amid changing market or operational conditions during the latter periods.