Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Philip Morris International Inc., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Philip Morris International Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Philip Morris International Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Philip Morris International Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Philip Morris International Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Philip Morris International Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Philip Morris International Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Equity
Philip Morris International Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Solvency Ratio | ||||||
| Debt to equity1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Altria Group Inc. | — | — | 10.38 | 4.51 | — | |
| Coca-Cola Co. | 1.62 | 1.86 | 2.22 | 2.25 | — | |
| Mondelēz International Inc. | 0.85 | 0.69 | 0.73 | 0.68 | — | |
| PepsiCo Inc. | 2.28 | 2.51 | 3.28 | 2.17 | — | |
| Debt to Equity, Sector | ||||||
| Food, Beverage & Tobacco | 1.99 | 1.99 | 2.16 | 1.80 | — | |
| Debt to Equity, Industry | ||||||
| Consumer Staples | 0.98 | 1.03 | 1.14 | 1.07 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Total PMI stockholders’ deficit
= 43,123 ÷ -8,957 = —
2 Click competitor name to see calculations.
Debt to Equity (including Operating Lease Liability)
Philip Morris International Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 178) | 192) | 190) | 194) | —) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 436) | 344) | 517) | 569) | —) | |
| Total debt (including operating lease liability) | 43,737) | 28,342) | 32,243) | 31,808) | 31,759) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 1.68 | 1.92 | 2.30 | 2.33 | — | |
| Mondelēz International Inc. | 0.88 | 0.71 | 0.75 | 0.70 | — | |
| PepsiCo Inc. | 2.42 | 2.64 | 3.41 | 2.27 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 2.06 | 2.05 | 2.22 | 1.86 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 1.10 | 1.14 | 1.28 | 1.09 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total PMI stockholders’ deficit
= 43,737 ÷ -8,957 = —
2 Click competitor name to see calculations.
Debt to Capital
Philip Morris International Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Total capital | 34,166) | 17,700) | 18,969) | 19,468) | 19,300) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 1.26 | 1.57 | 1.66 | 1.59 | 1.65 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Altria Group Inc. | 1.17 | 1.06 | 0.91 | 0.82 | — | |
| Coca-Cola Co. | 0.62 | 0.65 | 0.69 | 0.69 | — | |
| Mondelēz International Inc. | 0.46 | 0.41 | 0.42 | 0.40 | — | |
| PepsiCo Inc. | 0.69 | 0.72 | 0.77 | 0.68 | — | |
| Debt to Capital, Sector | ||||||
| Food, Beverage & Tobacco | 0.67 | 0.67 | 0.68 | 0.64 | — | |
| Debt to Capital, Industry | ||||||
| Consumer Staples | 0.50 | 0.51 | 0.53 | 0.52 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 43,123 ÷ 34,166 = 1.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Philip Morris International Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Philip Morris International Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 178) | 192) | 190) | 194) | —) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 436) | 344) | 517) | 569) | —) | |
| Total debt (including operating lease liability) | 43,737) | 28,342) | 32,243) | 31,808) | 31,759) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Total capital (including operating lease liability) | 34,780) | 18,236) | 19,676) | 20,231) | 19,300) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 1.26 | 1.55 | 1.64 | 1.57 | 1.65 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.63 | 0.66 | 0.70 | 0.70 | — | |
| Mondelēz International Inc. | 0.47 | 0.42 | 0.43 | 0.41 | — | |
| PepsiCo Inc. | 0.71 | 0.73 | 0.77 | 0.69 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.67 | 0.67 | 0.69 | 0.65 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.52 | 0.53 | 0.56 | 0.52 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 43,737 ÷ 34,780 = 1.26
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Philip Morris International Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Philip Morris International Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Total assets | 61,681) | 41,290) | 44,815) | 42,875) | 39,801) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.70 | 0.67 | 0.70 | 0.72 | 0.80 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Altria Group Inc. | 0.72 | 0.71 | 0.62 | 0.57 | — | |
| Coca-Cola Co. | 0.42 | 0.45 | 0.49 | 0.50 | — | |
| Mondelēz International Inc. | 0.32 | 0.29 | 0.30 | 0.29 | — | |
| PepsiCo Inc. | 0.42 | 0.44 | 0.48 | 0.41 | — | |
| Debt to Assets, Sector | ||||||
| Food, Beverage & Tobacco | 0.44 | 0.45 | 0.46 | 0.44 | — | |
| Debt to Assets, Industry | ||||||
| Consumer Staples | 0.29 | 0.30 | 0.33 | 0.33 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 43,123 ÷ 61,681 = 0.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Philip Morris International Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Debt to Assets (including Operating Lease Liability)
Philip Morris International Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 5,637) | 225) | 244) | 338) | 730) | |
| Current portion of long-term debt | 2,611) | 2,798) | 3,124) | 4,051) | 4,054) | |
| Long-term debt, excluding current portion | 34,875) | 24,783) | 28,168) | 26,656) | 26,975) | |
| Total debt | 43,123) | 27,806) | 31,536) | 31,045) | 31,759) | |
| Current operating lease liabilities (included in Accrued liabilities, Other) | 178) | 192) | 190) | 194) | —) | |
| Noncurrent operating lease liabilities (included in Income taxes and other liabilities) | 436) | 344) | 517) | 569) | —) | |
| Total debt (including operating lease liability) | 43,737) | 28,342) | 32,243) | 31,808) | 31,759) | |
| Total assets | 61,681) | 41,290) | 44,815) | 42,875) | 39,801) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.71 | 0.69 | 0.72 | 0.74 | 0.80 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Coca-Cola Co. | 0.44 | 0.47 | 0.51 | 0.51 | — | |
| Mondelēz International Inc. | 0.33 | 0.30 | 0.31 | 0.29 | — | |
| PepsiCo Inc. | 0.45 | 0.46 | 0.49 | 0.43 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Food, Beverage & Tobacco | 0.45 | 0.46 | 0.48 | 0.45 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Consumer Staples | 0.32 | 0.33 | 0.36 | 0.33 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 43,737 ÷ 61,681 = 0.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Philip Morris International Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Financial Leverage
Philip Morris International Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 61,681) | 41,290) | 44,815) | 42,875) | 39,801) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Solvency Ratio | ||||||
| Financial leverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Altria Group Inc. | — | — | 16.70 | 7.92 | — | |
| Coca-Cola Co. | 3.85 | 4.10 | 4.52 | 4.55 | — | |
| Mondelēz International Inc. | 2.65 | 2.37 | 2.46 | 2.37 | — | |
| PepsiCo Inc. | 5.38 | 5.76 | 6.91 | 5.31 | — | |
| Financial Leverage, Sector | ||||||
| Food, Beverage & Tobacco | 4.57 | 4.46 | 4.68 | 4.14 | — | |
| Financial Leverage, Industry | ||||||
| Consumer Staples | 3.40 | 3.45 | 3.50 | 3.28 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 61,681 ÷ -8,957 = —
2 Click competitor name to see calculations.
Interest Coverage
Philip Morris International Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 9,048) | 9,109) | 8,056) | 7,185) | 7,911) | |
| Add: Net income attributable to noncontrolling interest | 479) | 601) | 536) | 543) | 375) | |
| Add: Income tax expense | 2,244) | 2,671) | 2,377) | 2,293) | 2,445) | |
| Add: Interest expense | 768) | 737) | 728) | 796) | 855) | |
| Earnings before interest and tax (EBIT) | 12,539) | 13,118) | 11,697) | 10,817) | 11,586) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 16.33 | 17.80 | 16.07 | 13.59 | 13.55 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Altria Group Inc. | 7.55 | 4.22 | 6.63 | 1.58 | — | |
| Coca-Cola Co. | 14.25 | 8.78 | 7.78 | 12.40 | — | |
| Mondelēz International Inc. | 9.39 | 16.08 | 12.33 | 9.03 | — | |
| PepsiCo Inc. | 10.57 | 5.94 | 8.24 | 9.20 | — | |
| Interest Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 10.38 | 7.15 | 8.04 | 7.37 | — | |
| Interest Coverage, Industry | ||||||
| Consumer Staples | 14.21 | 10.01 | 10.46 | 7.90 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 12,539 ÷ 768 = 16.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Philip Morris International Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Fixed Charge Coverage
Philip Morris International Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 9,048) | 9,109) | 8,056) | 7,185) | 7,911) | |
| Add: Net income attributable to noncontrolling interest | 479) | 601) | 536) | 543) | 375) | |
| Add: Income tax expense | 2,244) | 2,671) | 2,377) | 2,293) | 2,445) | |
| Add: Interest expense | 768) | 737) | 728) | 796) | 855) | |
| Earnings before interest and tax (EBIT) | 12,539) | 13,118) | 11,697) | 10,817) | 11,586) | |
| Add: Operating lease cost | 248) | 259) | 317) | 332) | 312) | |
| Earnings before fixed charges and tax | 12,787) | 13,377) | 12,014) | 11,149) | 11,898) | |
| Interest expense | 768) | 737) | 728) | 796) | 855) | |
| Operating lease cost | 248) | 259) | 317) | 332) | 312) | |
| Fixed charges | 1,016) | 996) | 1,045) | 1,128) | 1,167) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 12.59 | 13.43 | 11.50 | 9.88 | 10.20 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Coca-Cola Co. | 10.14 | 7.41 | 6.45 | 9.47 | — | |
| Mondelēz International Inc. | 6.60 | 10.28 | 8.27 | 6.51 | — | |
| PepsiCo Inc. | 7.28 | 4.85 | 6.06 | 6.79 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Food, Beverage & Tobacco | 8.02 | 6.03 | 6.58 | 6.04 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Consumer Staples | 8.59 | 6.77 | 6.80 | 5.01 | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 12,787 ÷ 1,016 = 12.59
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Philip Morris International Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |