Philip Morris International Inc. (NYSE:PM)

The analysis of the quarterly financial ratios reveals some notable trends in the capital structure over the observed periods. The "Debt to capital" ratio demonstrates an overall decline from the first quarter of 2021 through to the end of 2022, indicating a gradual reduction in the company's reliance on debt relative to its total capital. Specifically, the ratio decreases from 1.65 in early 2021 to a low of 1.26 by the last quarter of 2022, suggesting a strengthening equity base or a reduction in debt levels during this timeframe.

However, starting from early 2023, there is a slight upward adjustment and stabilization in the "Debt to capital" ratio, fluctuating around the 1.25 to 1.35 range through mid-2025. This indicates that after the initial deleveraging phase, the company maintained a relatively stable debt proportion in its capital structure without significant further reductions or increases.

In contrast, the "Debt to assets" ratio exhibits a somewhat different pattern. Beginning at 0.74 in the first quarter of 2021, it decreases gradually to 0.67 by the final quarter of 2021, indicating an improvement in asset coverage relative to debt during that period. Subsequently, this ratio shows volatility but remains elevated, peaking at 0.77 in the second and fourth quarters of 2023. Following this, the ratio oscillates around 0.74 to 0.76 through to the third quarter of 2025.

This pattern in "Debt to assets" suggests that while the company managed to improve its asset coverage ratio in its initial period of review, it has since experienced periods where debt relative to total assets increased, and then hovered at moderately high levels. The fluctuations imply ongoing adjustments in the company's asset base and debt financing over time.

No data is available for the "Debt to equity" and "Financial leverage" ratios, which limits the ability to provide a comprehensive assessment of leverage from multiple perspectives. Nonetheless, from the available ratios, it can be inferred that the company undertook efforts to manage its capital structure by reducing debt relative to capital initially and then maintaining a stable leverage profile throughout recent quarters.

Debt to Capital

Decreased steadily from 1.65 in early 2021 to 1.26 by the end of 2022, followed by stabilization around 1.25 to 1.35 up to mid-2025.

Debt to Assets

Fell from 0.74 in early 2021 to 0.67 by end of 2021, then showed fluctuations peaking at 0.77 in 2023 and maintaining around 0.74 to 0.76 through 2025.

Debt to Equity and Financial Leverage

No available data to assess these ratios.

The analysis of the financial data for the company over multiple quarters reveals notable trends in both total debt and stockholders’ deficit, with partial data available for the debt to equity ratio.

Total Debt

The total debt values exhibit fluctuations across the reported periods. Starting at approximately $29.4 billion in the first quarter of 2021, the debt slightly declined through 2021 to around $27.2 billion by the third quarter of 2022. However, there was a significant increase in the fourth quarter of 2022, where the debt jumped sharply to approximately $43.1 billion.

Subsequently, total debt continued to rise gradually, peaking near $51.5 billion in the third quarter of 2025. Minor decreases were observed after peaks, for instance, a slight reduction from $50.4 billion in early 2024 to about $45.7 billion at the end of 2024. Overall, the trend suggests increased leverage, especially notable from late 2022 onward.

Total PMI Stockholders’ Deficit

The stockholders’ deficit was consistently negative throughout the periods, signaling an equity deficit. Starting near -$11.5 billion in early 2021, the deficit showed a gradual reduction in magnitude through 2021 and early 2022, reaching closer to -$8.9 billion in late 2022.

From early 2023 onwards, the deficit again increased in magnitude, fluctuating between roughly -$9.7 billion and -$11.9 billion through to late 2025. Periodic fluctuations show some intermittent improvement in equity position but overall indicate a persistent deficit with periods of worsening financial position.

Debt to Equity Ratio

Data for the debt to equity ratio is missing; however, analyzing the relationship between rising debt and negative equity suggests that leverage ratios could be increasing. The consistent negative stockholders’ equity combined with the rising debt levels likely results in an elevated debt to equity ratio, reflecting higher financial risk and increased reliance on borrowed funds relative to equity.

The financial data reflects the company's capital structure dynamics over a series of quarterly periods from March 2021 to September 2025. Key items analyzed include total debt, total capital, and the debt to capital ratio, all denominated in US dollars or as a ratio where applicable.

Total Debt

Total debt exhibited moderate fluctuations initially, maintaining values in the range of approximately $27 billion to $29 billion through the first half of the period (2021 to mid-2022). A notable increase occurred during the last quarter of 2022, where total debt surged sharply to over $43 billion. Subsequently, total debt remained elevated, generally stabilizing between $45 billion and $51 billion through the first three quarters of 2025. This substantial rise in debt levels near the end of 2022 signals a significant change in financing strategy or capital requirements.

Total Capital

Total capital also shows significant movements over the analyzed periods. Initially, values ranged relatively narrowly around $17 billion to $19 billion from early 2021 until mid-2022. Similar to total debt, a pronounced increase occurred by the end of 2022, with total capital jumping to around $34 billion and later fluctuating between approximately $33 billion and $40 billion in subsequent quarters through 2025. The surge in total capital aligns temporally with the rise in total debt, implying an overall expansion in the company’s capital base.

Debt to Capital Ratio

The debt to capital ratio indicates the leverage level relative to the company’s capital base. Early periods (2021 through mid-2022) show a decreasing trend in this ratio, from 1.65 down to a low of around 1.48, suggesting gradual deleveraging or an increase in capital relative to debt during this interval. At the end of 2022, this ratio fell significantly to about 1.26, corresponding with the rise in total capital and debt but indicating a relatively stronger growth in capital compared to debt. For the remaining periods through 2025, the ratio maintained a range between approximately 1.23 and 1.35, showing some volatility but stabilizing within a narrower band. This reflects a relatively consistent leverage level during the latter part of the timeline despite the elevated absolute debt and capital balances.

Overall, the financial data portrays a period of relative stability in leverage with a notable transition near the end of 2022, characterized by increased borrowing and a corresponding expansion of the capital base. Post-2022, the leverage ratio suggests a balanced approach to capital structure management, with debt levels sustained at higher absolute amounts but stabilized relative to total capital. This pattern could indicate strategic financing initiatives, possible acquisitions, or investments requiring elevated capital, balanced by efforts to maintain manageable leverage ratios over time.

Total Debt

There was an overall increase in total debt from March 2021 to September 2025. Initially, debt fluctuated slightly around the $29 billion mark through 2021 and early 2022, followed by a sharp rise at the end of 2022, reaching approximately $43 billion. Beyond this point, debt remained elevated, consistently hovering around the $47 billion to $51 billion range through to late 2025. Although some minor fluctuations occurred, the trend indicates a significant increase in leverage over the analyzed period.

Total Assets

Total assets exhibited a generally upward trend, increasing from roughly $40 billion in early 2021 to a peak of about $67 billion in the latter part of 2024 and early 2025. There was a marked jump at the end of 2022, with assets rising sharply from approximately $41 billion to over $61 billion, after which assets stabilized at a higher level. Minor oscillations occurred, but the overall pattern shows sustained asset growth over the time frame.

Debt to Assets Ratio

The debt to assets ratio showed a declining trend in 2021, moving from 0.74 down to 0.67, indicating improving financial leverage during that period. However, from late 2021 onwards, the ratio increased and stabilized at higher levels around 0.73 to 0.77. The rise in the ratio coincided with the increases in debt and assets but suggests that debt grew at a slightly faster pace relative to assets in recent years. By 2025, the ratio remained elevated near 0.75, implying a consistent high leverage position.

Overall Analysis

The data reflects a company that has significantly increased its debt load over the examined periods, particularly after mid-2022, alongside substantial growth in asset base. The notably higher debt levels contributed to an elevated leverage ratio compared to earlier periods. While total assets grew materially, the proportionate increase in debt maintains a high financing intensity. These conditions suggest a strategic approach involving increased borrowing, which may enhance asset accumulation but also raises considerations regarding financial risk and capital structure management going forward.

Total assets

The total assets exhibited a general upward trend from March 31, 2021, through September 30, 2024, increasing from approximately $39.8 billion to nearly $66 billion. Notably, there was a significant jump between December 31, 2022, and March 31, 2023, suggesting a major asset acquisition or revaluation during this period. However, a decline is observed in the final periods of the dataset, with total assets falling to about $67 billion as of September 30, 2025, down from the previous peak.

Total PMI stockholders’ deficit

The stockholders’ deficit showed fluctuating yet mostly negative values throughout the timeline, starting at roughly -$11.5 billion and moving toward less negative values, reaching near -$9 billion around December 31, 2022. This period corresponds with the asset increase, potentially indicating balance sheet restructuring. Subsequent quarters show alternating movements, with the deficit worsening sharply to over -$11 billion by December 31, 2023, and fluctuating thereafter between approximately -$9 billion and -$12 billion. This volatility could reflect changes in retained earnings, other comprehensive income, or treasury stock transactions.

Financial leverage

No data is available for financial leverage, preventing analysis of leverage trends or implications related to the company’s use of debt versus equity financing.

In summary, the assets of the company increased steadily over most of the observed period, with a notable surge in late 2022 and early 2023. The stockholders’ deficit moved inversely in some periods but experienced significant variability suggestive of complex equity movements or financial adjustments. The absence of financial leverage information limits deeper insight into capital structure changes over time.