Analysis of Geographic Areas
Philip Morris International Inc. operates in 4 regions: Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR); and Americas Region.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2008
- Total Asset Turnover since 2008
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Area Profit Margin
Philip Morris International Inc., profit margin by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The geographic area profit margins exhibited varied performance between 2021 and 2025. Significant divergence in trends is apparent across the reported regions, with some demonstrating relative stability while others experienced substantial fluctuations.
- Europe Region
- The Europe Region experienced a consistent decline in profit margin from 47.96% in 2021 to 36.45% in 2023. A partial recovery was observed in the subsequent two years, reaching 41.73% in 2024 and 41.87% in 2025. While the decline was initially steep, the margin stabilized near the 42% level by the end of the period.
- SSEA, CIS & MEA Region
- The SSEA, CIS & MEA Region showed initial improvement from 33.42% in 2021 to 36.92% in 2022, followed by a decrease to 29.50% in 2023. This region demonstrated a recovery in the latter years, increasing to 30.45% in 2024 and further to 33.99% in 2025, nearly returning to the initial 2021 level.
- EA, AU & PMI GTR Region
- The EA, AU & PMI GTR Region exhibited a slight decline from 43.98% in 2021 to 40.84% in 2022, followed by relative stability at 40.95% in 2023. A notable increase was observed in 2024, reaching 45.02%, and continued into 2025 with a further rise to 47.14%, representing the highest profit margin among the reported regions.
- Americas Region
- The Americas Region experienced a consistent and substantial decline in profit margin throughout the period. Starting at 26.42% in 2021, the margin decreased to 20.79% in 2022, 15.29% in 2023, 12.09% in 2024, and ultimately reached 10.40% in 2025. This represents a significant downward trend and the lowest profit margin among the regions analyzed.
Overall, the EA, AU & PMI GTR Region demonstrated the most positive trend, while the Americas Region experienced the most concerning decline. The Europe and SSEA, CIS & MEA Regions showed more moderate fluctuations, with some recovery observed in the later years of the period.
Area Profit Margin: Europe Region
Philip Morris International Inc.; Europe Region; area profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenues | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Net revenues
= 100 × ÷ =
The Europe Region demonstrated fluctuating performance between 2021 and 2025. Operating income experienced an initial decline followed by a recovery, while net revenues exhibited consistent growth. Consequently, the area profit margin showed considerable volatility over the period.
- Operating Income
- Operating income decreased from US$6,357 million in 2021 to US$5,518 million in 2022, representing a decline of approximately 13.1%. A further decrease was observed in 2023, falling to US$5,299 million. However, operating income rebounded in 2024, reaching US$6,547 million, and continued to increase in 2025 to US$7,165 million. This indicates a recovery and subsequent growth in profitability within the region.
- Net Revenues
- Net revenues remained relatively stable between 2021 and 2022, with a slight decrease from US$13,256 million to US$13,243 million. A positive trend emerged in 2023, with net revenues increasing to US$14,537 million. This growth continued through 2024 (US$15,690 million) and 2025 (US$17,111 million), demonstrating consistent revenue expansion within the Europe Region.
- Area Profit Margin
- The area profit margin experienced a significant decrease from 47.96% in 2021 to 41.67% in 2022, mirroring the decline in operating income. This downward trend continued in 2023, reaching a low of 36.45%. The margin then partially recovered in 2024 to 41.73% and stabilized further in 2025 at 41.87%. While the margin did not return to 2021 levels, the stabilization suggests a potential ceiling on further declines and a possible path towards improved profitability relative to revenue.
The observed trends suggest that while the Europe Region experienced initial challenges in maintaining profitability, particularly in 2022 and 2023, it demonstrated resilience through revenue growth and a subsequent recovery in operating income. The area profit margin, while volatile, showed signs of stabilization in the later years of the analyzed period.
Area Profit Margin: South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
Philip Morris International Inc.; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); area profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenues | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Net revenues
= 100 × ÷ =
The financial performance of this geographic area demonstrates a generally positive trajectory over the five-year period, though with some fluctuation. Operating income and net revenues both increased between 2021 and 2022, and again between 2024 and 2025. However, a decline in operating income was observed between 2022 and 2023. The area profit margin mirrors these trends, exhibiting volatility but ultimately showing improvement.
- Operating Income
- Operating income increased from US$3,295 million in 2021 to US$3,864 million in 2022, representing a substantial gain. A subsequent decrease to US$3,136 million occurred in 2023, before recovering to US$3,429 million in 2024. The most recent year, 2025, shows a further increase to US$4,096 million, reaching a new high within the observed period.
- Net Revenues
- Net revenues consistently increased throughout the period. From US$9,858 million in 2021, revenues grew to US$10,467 million in 2022, then to US$10,629 million in 2023. This growth continued with revenues reaching US$11,261 million in 2024 and US$12,051 million in 2025. The rate of revenue growth appears to be accelerating in the later years.
- Area Profit Margin
- The area profit margin initially increased from 33.42% in 2021 to 36.92% in 2022, coinciding with the rise in operating income and net revenues. A significant decrease to 29.50% was then recorded in 2023, likely due to the decline in operating income despite continued revenue growth. The margin partially recovered to 30.45% in 2024, and then increased to 33.99% in 2025, approaching the level seen in 2022. This suggests improved cost management or pricing power in the most recent year.
Overall, while the area experienced a dip in profitability in 2023, the trend indicates a strengthening financial position, particularly in the latest reported year. The consistent growth in net revenues, coupled with the recovery in area profit margin, suggests positive momentum for this geographic region.
Area Profit Margin: East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
Philip Morris International Inc.; East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR); area profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenues | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Net revenues
= 100 × ÷ =
The financial performance of the East Asia, Australia & PMI Global Travel Retail area demonstrates a fluctuating, yet ultimately positive, trend between 2021 and 2025. Operating income experienced initial decline followed by recovery and growth, while net revenues exhibited a more moderate increase over the same period. This resulted in a corresponding shift in the area profit margin.
- Operating Income
- Operating income decreased from US$2,836 million in 2021 to US$2,424 million in 2022, representing a decline of approximately 14.5%. A modest recovery was observed in 2023, with operating income reaching US$2,539 million. Subsequent years showed stronger growth, with income rising to US$2,878 million in 2024 and further increasing to US$3,126 million in 2025. This indicates a strengthening of profitability in the latter part of the analyzed period.
- Net Revenues
- Net revenues decreased from US$6,448 million in 2021 to US$5,936 million in 2022, a decrease of roughly 8.3%. Revenues then increased to US$6,201 million in 2023, followed by further gains to US$6,393 million in 2024 and US$6,632 million in 2025. The growth in net revenues, while present, was less pronounced than the recovery observed in operating income.
- Area Profit Margin
- The area profit margin initially decreased from 43.98% in 2021 to 40.84% in 2022, mirroring the decline in operating income. A slight increase to 40.95% was noted in 2023. A more substantial improvement occurred in 2024, with the margin rising to 45.02%. This upward trend continued into 2025, reaching 47.14%. The increasing profit margin suggests improved operational efficiency or pricing power, or a combination of both, despite the initial revenue dip. The margin’s growth outpaced revenue growth, indicating a positive shift in profitability.
In summary, while the area experienced a temporary setback in both operating income and net revenues in 2022, it demonstrated a strong recovery and growth trajectory through 2025. The area profit margin reflects this positive trend, indicating improved profitability and operational performance.
Area Profit Margin: Americas Region
Philip Morris International Inc.; Americas Region; area profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Net revenues | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Net revenues
= 100 × ÷ =
The Americas Region experienced fluctuating financial performance between 2021 and 2025. Operating income decreased initially, then increased before declining again, while net revenues consistently increased over the period. This resulted in a notable and consistent decline in the area profit margin.
- Operating Income
- Operating income began at US$487 million in 2021, decreased to US$440 million in 2022, and then rose significantly to US$582 million in 2023. However, this increase was not sustained, with operating income falling to US$548 million in 2024 and further to US$505 million in 2025. This suggests potential volatility in the region’s core business operations or increased operating expenses in later years.
- Net Revenues
- Net revenues demonstrated a consistent upward trend throughout the five-year period. Starting at US$1,843 million in 2021, revenues increased to US$2,116 million in 2022, then more substantially to US$3,807 million in 2023. This growth continued, reaching US$4,534 million in 2024 and US$4,854 million in 2025. This indicates a growing market presence or increased sales volume within the Americas Region.
- Area Profit Margin
- The area profit margin exhibited a consistent downward trend. Beginning at 26.42% in 2021, it decreased to 20.79% in 2022, 15.29% in 2023, 12.09% in 2024, and finally to 10.40% in 2025. Despite increasing net revenues, the declining profit margin suggests that the cost of goods sold and/or operating expenses are growing at a faster rate than revenue, or that pricing pressures are impacting profitability. The substantial decline warrants further investigation into the underlying cost structure and competitive landscape within the Americas Region.
The combination of rising revenues and decreasing profit margin suggests a potential shift in the region’s business model, increased competition, or rising input costs. Further analysis is recommended to understand the drivers behind these trends and their potential impact on future performance.
Area Return on Assets (Area ROA)
Philip Morris International Inc., ROA by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The geographic area return on assets demonstrates significant variation across regions and over the analyzed period. Overall, performance is highly concentrated in the East Asia, Australia & PMI Global Travel Retail region, while the Americas Region consistently exhibits the lowest returns.
- Europe Region
- The Europe Region experienced a substantial decrease in return on assets from 2021 to 2023, declining from 129.26% to 93.01%. A recovery is then observed in 2024, reaching 118.18%, followed by a slight decrease to 108.25% in 2025. This suggests potential volatility or cyclicality within the region’s asset utilization.
- South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
- This region shows a generally positive trend, although not linear. Return on assets increased significantly from 151.08% in 2021 to 188.76% in 2022. A subsequent decline to 142.74% in 2023 was followed by increases in both 2024 (158.75%) and 2025 (185.42%). This indicates a growing, but potentially fluctuating, level of profitability relative to assets in this area.
- East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
- This region consistently delivers the highest returns on assets. While experiencing a slight decrease from 382.21% in 2021 to 359.11% in 2022, it demonstrates substantial growth in subsequent years, reaching 527.86% in 2023, 761.38% in 2024, and 771.85% in 2025. This suggests highly efficient asset utilization and strong profitability within this geographic area.
- Americas Region
- The Americas Region consistently reports the lowest return on assets among the analyzed areas. A significant decline is observed from 73.12% in 2021 to 34.32% in 2022. While there is some fluctuation, with a rise to 44.43% in 2023, returns subsequently decrease to 35.15% in 2024 and 25.29% in 2025. This indicates ongoing challenges in generating returns from assets deployed in this region.
The substantial differences in area ROA highlight the importance of geographically diversified strategies. The East Asia, Australia & PMI Global Travel Retail region is a key driver of overall asset efficiency, while the Americas Region requires focused attention to improve performance.
Area ROA: Europe Region
Philip Morris International Inc.; Europe Region; area ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Long-lived assets | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area ROA = 100 × Operating income (loss) ÷ Long-lived assets
= 100 × ÷ =
The Europe Region demonstrated fluctuating performance between 2021 and 2025. Operating income experienced an initial decline followed by a recovery, while long-lived assets generally increased over the period. Consequently, the Area Return on Assets (ROA) exhibited corresponding volatility.
- Operating Income
- Operating income decreased from US$6,357 million in 2021 to US$5,518 million in 2022, representing a decline of approximately 13.1%. A further decrease was observed in 2023, falling to US$5,299 million. However, a substantial recovery occurred in 2024, with operating income rising to US$6,547 million, and continued into 2025, reaching US$7,165 million. This indicates a strengthening of profitability in the latter years of the analyzed period.
- Long-Lived Assets
- Long-lived assets showed a consistent upward trend overall, increasing from US$4,918 million in 2021 to US$5,179 million in 2022 and US$5,697 million in 2023. A slight decrease was noted in 2024, with assets totaling US$5,540 million, but then increased significantly to US$6,619 million in 2025. This suggests ongoing investment in the region’s asset base.
- Area ROA
- The Area ROA mirrored the fluctuations in operating income. It began at a high of 129.26% in 2021, then decreased to 106.55% in 2022 and further to 93.01% in 2023. A significant rebound occurred in 2024, with the ROA rising to 118.18%, and remained elevated at 108.25% in 2025. The ROA’s movement suggests that the region’s efficiency in generating profit from its assets was impacted by the initial decline in operating income, but improved alongside the subsequent recovery.
The increasing long-lived assets, coupled with the recovery in operating income, contributed to a stabilization of the Area ROA towards the end of the period. The region demonstrated resilience in recovering profitability despite initial challenges.
Area ROA: South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
Philip Morris International Inc.; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); area ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Long-lived assets | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area ROA = 100 × Operating income (loss) ÷ Long-lived assets
= 100 × ÷ =
The financial performance of this geographic area demonstrates considerable volatility over the five-year period. Operating income exhibited an initial increase followed by a decline and subsequent recovery, while long-lived assets remained relatively stable. This pattern significantly impacts the area’s Return on Assets (ROA).
- Operating Income
- Operating income increased from US$3,295 million in 2021 to US$3,864 million in 2022, representing a substantial gain. However, a decrease was observed in 2023, with operating income falling to US$3,136 million. A moderate recovery occurred in 2024, reaching US$3,429 million, followed by a further increase to US$4,096 million in 2025, surpassing the 2022 peak.
- Long-Lived Assets
- Long-lived assets experienced a slight decrease from US$2,181 million in 2021 to US$2,047 million in 2022. These assets then showed a modest increase in 2023 to US$2,197 million, followed by a slight decrease in 2024 to US$2,160 million. The trend continued with a further increase to US$2,209 million in 2025. Overall, the changes in long-lived assets were relatively small compared to the fluctuations in operating income.
- Area ROA
- The area ROA mirrored the operating income trend. It rose significantly from 151.08% in 2021 to 188.76% in 2022. A substantial decline was then recorded in 2023, with ROA falling to 142.74%. The ROA partially recovered in 2024, reaching 158.75%, and continued to increase in 2025, achieving 185.42%, nearing the 2022 high. The strong correlation between operating income and ROA is evident, as the latter is directly influenced by the former given the relative stability of long-lived assets.
The area experienced a period of strong performance in 2022, followed by a downturn in 2023, and a subsequent recovery culminating in a strong result in 2025. The volatility in operating income is the primary driver of the fluctuations in ROA. The relatively stable level of long-lived assets suggests that changes in asset base are not the primary cause of the observed performance swings.
Area ROA: East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
Philip Morris International Inc.; East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR); area ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Long-lived assets | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area ROA = 100 × Operating income (loss) ÷ Long-lived assets
= 100 × ÷ =
The financial performance of the East Asia, Australia & PMI Global Travel Retail area demonstrates a notable trajectory over the five-year period. Operating income experienced initial fluctuation before exhibiting consistent growth, while long-lived assets generally decreased. This combination resulted in a significant and sustained increase in Area Return on Assets (ROA).
- Operating Income
- Operating income began at US$2,836 million in 2021, decreased to US$2,424 million in 2022, and then showed a recovery, reaching US$2,539 million in 2023. Subsequent years saw continued improvement, with income rising to US$2,878 million in 2024 and further to US$3,126 million in 2025. This indicates a strengthening of profitability within the area following an initial dip.
- Long-Lived Assets
- Long-lived assets decreased steadily from US$742 million in 2021 to US$378 million in 2024. A slight increase was observed in 2025, with assets reaching US$405 million. This suggests a potential strategy of asset optimization or divestiture within the region, or a shift towards more efficient asset utilization.
- Area ROA
- Area ROA exhibited a substantial upward trend. Starting at 382.21% in 2021, it decreased slightly to 359.11% in 2022, mirroring the operating income decline. However, ROA then increased dramatically to 527.86% in 2023, 761.38% in 2024, and 771.85% in 2025. This significant improvement is attributable to the combination of recovering and growing operating income alongside decreasing long-lived assets, indicating enhanced efficiency in generating profits from the area’s asset base.
The consistent growth in Area ROA, particularly in the later years, suggests effective management of resources and a positive operational trend within East Asia, Australia & PMI Global Travel Retail. The decrease in long-lived assets, coupled with increasing operating income, points to improved asset turnover and profitability.
Area ROA: Americas Region
Philip Morris International Inc.; Americas Region; area ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | |||||
| Long-lived assets | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area ROA = 100 × Operating income (loss) ÷ Long-lived assets
= 100 × ÷ =
The Americas region experienced fluctuating financial performance between 2021 and 2025. Operating income decreased initially, then recovered, before declining again, while long-lived assets consistently increased throughout the period. Consequently, the Area Return on Assets (ROA) exhibited a significant downward trend.
- Operating Income
- Operating income began at US$487 million in 2021, decreased to US$440 million in 2022, and then increased substantially to US$582 million in 2023. A subsequent decline to US$548 million occurred in 2024, followed by a further decrease to US$505 million in 2025. This indicates volatility in the region’s profitability.
- Long-Lived Assets
- Long-lived assets demonstrated consistent growth over the five-year period. Starting at US$666 million in 2021, they increased to US$1,282 million in 2022, US$1,310 million in 2023, US$1,559 million in 2024, and reached US$1,997 million in 2025. This suggests ongoing investment in the region’s asset base.
- Area ROA
- The Area ROA experienced a marked decline. It started at a high of 73.12% in 2021, decreased significantly to 34.32% in 2022, partially recovered to 44.43% in 2023, but then fell to 35.15% in 2024 and further to 25.29% in 2025. This downward trend suggests that the region is becoming less efficient at generating profit from its assets, despite increasing asset levels. The decline in ROA is likely attributable to the combination of fluctuating operating income and consistently rising long-lived assets.
The increasing investment in long-lived assets does not appear to be translating into proportional gains in operating income, resulting in diminishing returns as measured by the Area ROA. Further investigation into the nature of these asset investments and their associated profitability would be warranted.
Area Asset Turnover
Philip Morris International Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The area asset turnover ratios exhibit varied performance across the reported geographic regions between 2021 and 2025. Significant differences in both levels and trends are observed, suggesting differing efficiencies in asset utilization across these areas.
- Europe Region
- The Europe Region demonstrates a relatively stable asset turnover ratio, fluctuating between 2.55 and 2.83 over the five-year period. A slight decrease is noted from 2021 to 2022, followed by a modest recovery in 2023 and a peak in 2024, before declining again in 2025. This suggests consistent, though not improving, asset utilization within this region.
- South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
- The SSEA, CIS & MEA region consistently exhibits the highest asset turnover ratio among the reported areas. An increasing trend is apparent, rising from 4.52 in 2021 to 5.46 in 2025. This indicates improving efficiency in converting assets into revenue within this region, potentially driven by strong sales growth or optimized asset management.
- East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
- The EA, AU & PMI GTR region shows the most dramatic change in asset turnover. Starting at 8.69 in 2021, the ratio nearly doubles to 16.91 in 2024 before decreasing slightly to 16.38 in 2025. This substantial increase suggests a significant improvement in asset utilization, potentially linked to increased retail activity or changes in inventory management. The slight decline in 2025 warrants further investigation.
- Americas Region
- The Americas Region displays the most volatile asset turnover ratio. A substantial decrease is observed from 2.77 in 2021 to 1.65 in 2022, followed by a recovery to 2.91 in 2023 and 2024, and then a decline to 2.43 in 2025. This fluctuation suggests instability in asset utilization, potentially due to market conditions, strategic shifts, or operational challenges. The ratio remains relatively low compared to other regions.
Overall, the regional asset turnover ratios highlight significant disparities in operational efficiency. The SSEA, CIS & MEA and EA, AU & PMI GTR regions demonstrate improving asset utilization, while the Europe Region remains relatively stable. The Americas Region exhibits the most concerning trend, with considerable volatility and a comparatively low ratio in the latest reporting period.
Area Asset Turnover: Europe Region
Philip Morris International Inc.; Europe Region; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The Europe Region experienced growth in net revenues between 2021 and 2025, while long-lived assets also generally increased over the same period. However, the area asset turnover ratio exhibited fluctuations during this timeframe.
- Net Revenues
- Net revenues in the Europe Region demonstrated a consistent upward trend, increasing from US$13,256 million in 2021 to US$17,111 million in 2025. This represents a cumulative increase of approximately 29.1% over the five-year period.
- Long-Lived Assets
- Long-lived assets in the Europe Region showed an overall increase from US$4,918 million in 2021 to US$6,619 million in 2025. While there was a slight decrease between 2022 and 2023, the trend is predominantly positive, with a total increase of approximately 34.5% over the five years.
- Area Asset Turnover
- The area asset turnover ratio began at 2.70 in 2021, decreased to 2.56 in 2022, and remained relatively stable at 2.55 in 2023. A notable increase was observed in 2024, with the ratio reaching 2.83, before declining slightly to 2.59 in 2025. This indicates varying levels of efficiency in generating net revenues from long-lived assets within the region. The 2024 peak suggests improved asset utilization, but the subsequent decrease in 2025 warrants further investigation.
Despite the growth in both net revenues and long-lived assets, the area asset turnover ratio did not consistently increase. The fluctuations in this ratio suggest that the relationship between revenue generation and asset investment is not linear and may be influenced by factors such as changes in operational efficiency, asset composition, or market conditions.
Area Asset Turnover: South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
Philip Morris International Inc.; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The financial performance of this geographic area demonstrates a generally positive trend over the five-year period. Net revenues consistently increased, while long-lived assets remained relatively stable. This resulted in an improving area asset turnover ratio.
- Net Revenues
- Net revenues experienced consistent growth, increasing from US$9,858 million in 2021 to US$12,051 million in 2025. The largest year-over-year increase occurred between 2022 and 2023, with a rise of US$162 million. Growth continued, albeit at a slightly slower pace, through 2025.
- Long-Lived Assets
- Long-lived assets exhibited relative stability throughout the period. Fluctuations were minimal, ranging from US$2,047 million to US$2,209 million. This suggests a consistent level of investment in fixed assets within the region.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate revenue, generally improved. The ratio increased from 4.52 in 2021 to 5.46 in 2025. A slight dip was observed between 2021 and 2022, but the ratio subsequently increased in each subsequent year. This indicates increasing efficiency in asset utilization within the region, driven primarily by revenue growth with relatively stable asset levels.
Overall, the increasing area asset turnover ratio, coupled with consistent revenue growth and stable long-lived assets, suggests improving operational efficiency and effective asset management within this geographic area.
Area Asset Turnover: East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
Philip Morris International Inc.; East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR); area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The financial performance of the East Asia, Australia & PMI Global Travel Retail area demonstrates a notable shift in asset utilization between 2021 and 2025. Net revenues experienced initial decline followed by recovery and growth, while long-lived assets consistently decreased over the period. This dynamic significantly impacted the area asset turnover ratio.
- Net Revenues
- Net revenues decreased from US$6,448 million in 2021 to US$5,936 million in 2022, representing a decline of approximately 8.3%. Revenues then began to recover, reaching US$6,201 million in 2023, US$6,393 million in 2024, and further increasing to US$6,632 million in 2025. This indicates a positive revenue trend following the initial downturn.
- Long-Lived Assets
- Long-lived assets exhibited a consistent downward trend throughout the analyzed period. Beginning at US$742 million in 2021, they decreased to US$675 million in 2022, US$481 million in 2023, US$378 million in 2024, and stabilized at US$405 million in 2025. This suggests a reduction in the area’s investment in long-term assets.
- Area Asset Turnover
- The area asset turnover ratio increased substantially over the five-year period. Starting at 8.69 in 2021, it rose to 8.79 in 2022. A significant jump was observed in 2023, reaching 12.89, and continued to increase to 16.91 in 2024. While still high, the ratio experienced a slight decrease to 16.38 in 2025. This indicates a growing efficiency in generating revenue from the area’s assets, likely driven by the combination of revenue recovery and decreasing asset values. The substantial increase suggests improved asset management or a shift in business strategy.
The observed trends suggest that the area is becoming more efficient in utilizing its assets to generate revenue. The decline in long-lived assets, coupled with the recovery and growth in net revenues, has resulted in a significantly improved asset turnover ratio. The slight decrease in the ratio in 2025 warrants continued monitoring to determine if it represents a temporary fluctuation or the beginning of a new trend.
Area Asset Turnover: Americas Region
Philip Morris International Inc.; Americas Region; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The Americas Region experienced significant revenue growth between 2021 and 2025, while long-lived assets also increased over the same period. However, the area asset turnover ratio exhibited fluctuations, indicating a changing relationship between revenue generation and asset utilization.
- Net Revenues
- Net revenues in the Americas Region demonstrated a substantial upward trend. Beginning at US$1,843 million in 2021, revenues increased to US$2,116 million in 2022. A more pronounced increase occurred between 2022 and 2023, reaching US$3,807 million. This growth continued, with revenues reaching US$4,534 million in 2024 and US$4,854 million in 2025. This represents a cumulative increase of approximately 163% from 2021 to 2025.
- Long-Lived Assets
- Long-lived assets in the Americas Region also increased throughout the period, though at a slower pace than revenue growth. Starting at US$666 million in 2021, assets rose to US$1,282 million in 2022. Subsequent increases were more moderate, reaching US$1,310 million in 2023, US$1,559 million in 2024, and US$1,997 million in 2025. This indicates a cumulative increase of approximately 300% from 2021 to 2025.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency of asset utilization in generating revenue, showed variability. The ratio began at 2.77 in 2021, decreased to 1.65 in 2022, and then recovered to 2.91 in 2023 and remained constant in 2024. A slight decline to 2.43 was observed in 2025. The initial decrease in 2022 coincided with a significant increase in long-lived assets without a proportional increase in revenue. The subsequent recovery in 2023 and 2024 suggests improved asset utilization, but the decrease in 2025 warrants further investigation. Despite the fluctuations, the ratio remained above 2.4 for most of the period, indicating reasonably efficient asset management.
The increasing asset base, coupled with the fluctuating asset turnover ratio, suggests a potential need to monitor asset utilization efficiency closely. While revenue growth is positive, the rate of asset accumulation should be evaluated in relation to its impact on the area asset turnover ratio to ensure optimal capital allocation.
Net revenues
Philip Morris International Inc., net revenues by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Net revenues demonstrate varied performance across geographic regions between 2021 and 2025. Overall, total net revenues exhibit a consistent upward trajectory, though the rate of growth fluctuates. A detailed examination of regional contributions reveals distinct patterns.
- Europe Region
- The Europe Region consistently contributes the largest portion of net revenues. From 2021 to 2025, net revenues in this region increased from US$13,256 million to US$17,111 million, representing a substantial and steady growth rate. This region shows the strongest absolute revenue increase over the period.
- South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
- The SSEA, CIS & MEA region shows consistent, though more moderate, growth. Net revenues increased from US$9,858 million in 2021 to US$12,051 million in 2025. While positive, the growth rate is less pronounced than that of the Europe Region. The increase is relatively steady year-over-year.
- East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
- This region exhibits the most volatile performance. Net revenues decreased from US$6,448 million in 2021 to US$5,936 million in 2022, before recovering to US$6,632 million in 2025. Growth in this region is the slowest among the four reported areas, and the initial decline suggests potential challenges within this market. The recovery, while present, is gradual.
- Americas Region
- The Americas Region demonstrates the most significant relative growth, albeit from a smaller base. Net revenues increased substantially from US$1,843 million in 2021 to US$4,854 million in 2025. This represents a considerable percentage increase, indicating a potentially expanding market share or successful strategic initiatives within this region. The growth accelerates significantly from 2022 onwards.
The overall increase in total net revenues is driven primarily by the strong performance of the Europe Region and the accelerating growth in the Americas Region. The SSEA, CIS & MEA region provides consistent, moderate growth, while the EA, AU & PMI GTR region experiences more fluctuation and slower overall expansion.
Operating income (loss)
Philip Morris International Inc., operating income (loss) by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Operating income exhibited varied performance across geographic regions between 2021 and 2025. Overall, total operating income demonstrated a fluctuating pattern, initially declining before recovering and ultimately surpassing the 2021 level. A detailed examination of regional contributions reveals distinct trends.
- Europe Region
- The Europe Region experienced an initial decline in operating income from 2021 to 2022, followed by a further decrease in 2023. However, a notable recovery commenced in 2024 and continued into 2025, with operating income reaching 7,165 million US dollars. This represents the highest operating income within the observed period for this region and a substantial increase from the 2023 low.
- SSEA, CIS & MEA Region
- The SSEA, CIS & MEA Region showed an increase in operating income from 2021 to 2022. This was followed by a decrease in 2023, but the region demonstrated growth in both 2024 and 2025, culminating in 4,096 million US dollars. While volatile, the region concluded the period with its highest operating income.
- EA, AU & PMI GTR Region
- Operating income in the East Asia, Australia & PMI Global Travel Retail Region generally remained relatively stable, with a slight decline from 2021 to 2022. A modest recovery occurred in 2023 and 2024, continuing into 2025, reaching 3,126 million US dollars. This region’s performance was less dynamic than other areas.
- Americas Region
- The Americas Region exhibited the smallest contribution to overall operating income and the most inconsistent performance. Operating income decreased from 2021 to 2022, increased in 2023, then decreased slightly in 2024, and decreased again in 2025, ending at 505 million US dollars. This region’s operating income remained significantly lower than other regions throughout the period.
The overall trend in total operating income was influenced significantly by the performance of the Europe Region, which demonstrated the most substantial recovery in the later years of the period. The Americas Region consistently contributed the least to total operating income and experienced the most fluctuation. The SSEA, CIS & MEA region showed positive growth overall, while the EA, AU & PMI GTR region remained relatively stable.
Long-lived assets
Philip Morris International Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Europe Region | |||||
| South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA) | |||||
| East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR) | |||||
| Americas Region | |||||
| Total |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The value of long-lived assets demonstrates varied performance across geographic regions between 2021 and 2025. Overall, total long-lived assets increased from US$8.507 billion to US$11.230 billion over the five-year period, though growth was not consistent annually.
- Europe Region
- The Europe Region exhibited a generally increasing trend in long-lived asset value. Starting at US$4.918 billion in 2021, the value rose to US$5.179 billion in 2022 and continued to US$5.697 billion in 2023. A slight decrease was observed in 2024, falling to US$5.540 billion, before a substantial increase to US$6.619 billion in 2025. This region represents a significant and growing portion of the company’s long-lived asset base.
- South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA)
- Long-lived asset values in the SSEA, CIS & MEA region showed relative stability. The value decreased from US$2.181 billion in 2021 to US$2.047 billion in 2022, then recovered to US$2.197 billion in 2023 and US$2.160 billion in 2024. A modest increase to US$2.209 billion was recorded in 2025. The region’s asset base remained relatively consistent throughout the period.
- East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR)
- This region experienced a consistent downward trend in long-lived asset value. Beginning at US$742 million in 2021, the value decreased to US$675 million in 2022, US$481 million in 2023, and US$378 million in 2024. A slight increase to US$405 million was observed in 2025, but the value remained significantly lower than the initial amount. This represents a considerable reduction in the region’s asset base.
- Americas Region
- The Americas Region demonstrated the most substantial relative growth in long-lived asset value. Starting at US$666 million in 2021, the value more than doubled to US$1,282 million in 2022 and further increased to US$1,310 million in 2023. Continued growth was observed in 2024, reaching US$1,559 million, and culminating in US$1,997 million in 2025. This region experienced significant investment and expansion of its long-lived asset base.
The overall increase in total long-lived assets was primarily driven by growth in the Europe and Americas Regions, while the East Asia, Australia & PMI Global Travel Retail region experienced a consistent decline. The SSEA, CIS & MEA region remained relatively stable throughout the analyzed period.