Philip Morris International Inc. (NYSE:PM)

Philip Morris International Inc., solvency ratios (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Debt Ratios
Debt to equity	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Debt to capital	1.20	1.21	1.22	1.26	1.28	1.30	1.28	1.35	1.25	1.25	1.26	1.31	1.25	1.25	1.23	1.26	1.51	1.48	1.52
Debt to assets	0.71	0.72	0.75	0.71	0.75	0.75	0.76	0.74	0.74	0.75	0.77	0.73	0.76	0.77	0.76	0.70	0.67	0.68	0.70
Financial leverage	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

The solvency profile exhibits a general trend toward a reduction in leverage relative to total capital, while the proportion of assets financed through debt remains relatively stable over the analyzed period.

Debt to Capital Ratio: A comprehensive downward trajectory is observed, starting from a peak of 1.52 in March 2022 and declining to 1.20 by September 2026. A significant reduction occurred during 2022, where the ratio fell to 1.26 by December. Although period-over-period volatility was present between 2023 and 2024—including a peak of 1.35 in December 2024—a consistent decline is evident from early 2025 through the final quarter of the series, indicating a strengthening of the capital structure.
Debt to Assets Ratio: The ratio demonstrates stability with minor fluctuations, maintaining a range between 0.67 and 0.77. An initial dip to 0.67 in September 2022 was followed by a rise to 0.77 by June 2023. For the remainder of the period, the ratio remained elevated, plateauing between 0.71 and 0.77, which suggests a consistent reliance on debt for asset financing without significant structural shifts in asset coverage.

The convergence of these metrics indicates an improvement in solvency relative to total capital, despite the persistence of a high debt-to-asset ratio. The overall trend suggests a strategic reduction in total leverage over the multi-year horizon.

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Philip Morris International Inc., debt to equity calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Data (US$ in millions)
Short-term borrowings	2,525)	3,341)	5,693)	168)	1,880)	2,540)	4,438)	137)	152)	139)	279)	1,968)	2,149)	4,121)	4,803)	5,637)	2,818)	1,558)	2,441)
Current portion of long-term debt	3,328)	3,406)	2,447)	3,533)	6,339)	6,491)	6,360)	3,392)	4,833)	4,353)	5,425)	4,698)	2,652)	2,372)	1,902)	2,611)	2,641)	4,149)	2,897)
Long-term debt, excluding current portion	41,709)	42,366)	43,808)	45,134)	41,863)	42,431)	38,781)	42,166)	44,237)	44,647)	44,683)	41,243)	42,914)	41,400)	40,416)	34,875)	21,762)	22,345)	24,019)
Total debt	47,562)	49,113)	51,948)	48,835)	50,082)	51,462)	49,579)	45,695)	49,222)	49,139)	50,387)	47,909)	47,715)	47,893)	47,121)	43,123)	27,221)	28,052)	29,357)

Total PMI stockholders’ deficit	(7,937)	(8,583)	(9,279)	(9,994)	(10,914)	(11,966)	(10,901)	(11,750)	(9,694)	(9,744)	(10,309)	(11,225)	(9,433)	(9,703)	(8,924)	(8,957)	(9,137)	(9,044)	(10,098)
Solvency Ratio
Debt to equity¹	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Benchmarks
Debt to Equity, Competitors²
Coca-Cola Co.	1.11	1.20	1.30	1.41	1.52	1.73	1.87	1.79	1.74	1.69	1.61	1.62	1.53	1.60	1.68	1.62	1.74	1.82	1.68
Mondelēz International Inc.	0.82	0.81	0.82	0.82	0.81	0.80	0.76	0.66	0.71	0.71	0.67	0.69	0.70	0.74	0.79	0.85	0.81	0.70	0.70
PepsiCo Inc.	2.33	2.41	2.47	2.41	2.62	2.79	2.64	2.46	2.31	2.31	2.41	2.38	2.38	2.47	2.45	2.28	2.07	2.12	2.20

¹ Q3 2026 Calculation
Debt to equity = Total debt ÷ Total PMI stockholders’ deficit
= 47,562 ÷ -7,937 = —

² Click competitor name to see calculations.

The financial profile is characterized by a sustained negative equity position combined with a significant expansion of total debt over the analyzed period. The capital structure demonstrates a reliance on debt financing, with the stockholders' deficit remaining persistent, thereby resulting in a negative debt-to-equity ratio throughout the entire timeframe.

Total Debt Trends: A substantial increase in total debt is observed, particularly between September 30, 2022, and December 31, 2022, where obligations rose from 27,221 million US$ to 43,123 million US$. Following this spike, debt levels remained elevated, generally fluctuating between 45,000 million US$ and 52,000 million US$. The peak debt level was reached on March 31, 2026, at 51,948 million US$, before trending slightly downward to 47,562 million US$ by September 30, 2026.
Stockholders' Deficit Analysis: The equity position remained negative for all reported quarters, indicating that total liabilities consistently exceeded total assets. The deficit fluctuated between a minimum of -7,937 million US$ (September 30, 2026) and a maximum of -11,966 million US$ (June 30, 2025). A gradual improvement in the deficit is noted toward the end of the period, moving from -11,966 million US$ in mid-2025 to -7,937 million US$ by late 2026.
Solvency and Leverage Implications: The combination of increasing total debt and a persistent stockholders' deficit suggests a highly leveraged capital structure. Because the equity is negative, the traditional debt-to-equity ratio does not provide a standard solvency measure but instead highlights a state of technical insolvency or a strategic decision to operate with negative book value. The widening gap between total debt and equity from 2022 to 2026 indicates an increased reliance on external borrowing to fund operations or capital allocations.

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Philip Morris International Inc., debt to capital calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Data (US$ in millions)
Short-term borrowings	2,525)	3,341)	5,693)	168)	1,880)	2,540)	4,438)	137)	152)	139)	279)	1,968)	2,149)	4,121)	4,803)	5,637)	2,818)	1,558)	2,441)
Current portion of long-term debt	3,328)	3,406)	2,447)	3,533)	6,339)	6,491)	6,360)	3,392)	4,833)	4,353)	5,425)	4,698)	2,652)	2,372)	1,902)	2,611)	2,641)	4,149)	2,897)
Long-term debt, excluding current portion	41,709)	42,366)	43,808)	45,134)	41,863)	42,431)	38,781)	42,166)	44,237)	44,647)	44,683)	41,243)	42,914)	41,400)	40,416)	34,875)	21,762)	22,345)	24,019)
Total debt	47,562)	49,113)	51,948)	48,835)	50,082)	51,462)	49,579)	45,695)	49,222)	49,139)	50,387)	47,909)	47,715)	47,893)	47,121)	43,123)	27,221)	28,052)	29,357)
Total PMI stockholders’ deficit	(7,937)	(8,583)	(9,279)	(9,994)	(10,914)	(11,966)	(10,901)	(11,750)	(9,694)	(9,744)	(10,309)	(11,225)	(9,433)	(9,703)	(8,924)	(8,957)	(9,137)	(9,044)	(10,098)
Total capital	39,625)	40,530)	42,669)	38,841)	39,168)	39,496)	38,678)	33,945)	39,528)	39,395)	40,078)	36,684)	38,282)	38,190)	38,197)	34,166)	18,084)	19,008)	19,259)
Solvency Ratio
Debt to capital¹	1.20	1.21	1.22	1.26	1.28	1.30	1.28	1.35	1.25	1.25	1.26	1.31	1.25	1.25	1.23	1.26	1.51	1.48	1.52
Benchmarks
Debt to Capital, Competitors²
Coca-Cola Co.	0.53	0.55	0.57	0.59	0.60	0.63	0.65	0.64	0.64	0.63	0.62	0.62	0.60	0.62	0.63	0.62	0.63	0.65	0.63
Mondelēz International Inc.	0.45	0.45	0.45	0.45	0.45	0.44	0.43	0.40	0.42	0.42	0.40	0.41	0.41	0.43	0.44	0.46	0.45	0.41	0.41
PepsiCo Inc.	0.70	0.71	0.71	0.71	0.72	0.74	0.73	0.71	0.70	0.70	0.71	0.70	0.70	0.71	0.71	0.69	0.67	0.68	0.69

¹ Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 47,562 ÷ 39,625 = 1.20

² Click competitor name to see calculations.

An analysis of the solvency metrics reveals a structural shift in the balance sheet beginning in late 2022, followed by a period of stabilization and a gradual improvement in the debt-to-capital relationship through September 2026.

Total Debt Trends: Total debt exhibited significant growth, rising from 29,357 million USD in March 2022 to a peak of 51,948 million USD in March 2026. A substantial increase occurred between September 30, 2022, and December 31, 2022, where debt levels jumped from 27,221 million USD to 43,123 million USD. Following this surge, debt levels remained elevated, generally fluctuating between 45,000 million USD and 52,000 million USD for the remainder of the observed period.
Total Capital Trends: Total capital followed a trajectory similar to that of total debt, characterized by a sharp increase in the fourth quarter of 2022. Capital grew from 18,084 million USD in September 2022 to 34,166 million USD by December 2022. While there was subsequent volatility, including a dip to 33,945 million USD in December 2024, the capital base generally expanded to reach 42,669 million USD in March 2026 before settling at 39,625 million USD by September 2026.
Debt to Capital Ratio Analysis: The debt-to-capital ratio began at a high of 1.52 in March 2022, remaining above 1.48 for the first three quarters of that year. A notable correction occurred in December 2022, with the ratio dropping to 1.26. Throughout 2023 and 2024, the ratio remained relatively stable, oscillating within a narrow band between 1.23 and 1.35. Starting in June 2025, a consistent downward trend is observed, with the ratio declining from 1.30 to a period low of 1.20 by September 2026. This suggests a gradual improvement in the solvency profile and a more optimized capital structure over the long term, despite the absolute increase in total debt.

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Philip Morris International Inc., debt to assets calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Data (US$ in millions)
Short-term borrowings	2,525)	3,341)	5,693)	168)	1,880)	2,540)	4,438)	137)	152)	139)	279)	1,968)	2,149)	4,121)	4,803)	5,637)	2,818)	1,558)	2,441)
Current portion of long-term debt	3,328)	3,406)	2,447)	3,533)	6,339)	6,491)	6,360)	3,392)	4,833)	4,353)	5,425)	4,698)	2,652)	2,372)	1,902)	2,611)	2,641)	4,149)	2,897)
Long-term debt, excluding current portion	41,709)	42,366)	43,808)	45,134)	41,863)	42,431)	38,781)	42,166)	44,237)	44,647)	44,683)	41,243)	42,914)	41,400)	40,416)	34,875)	21,762)	22,345)	24,019)
Total debt	47,562)	49,113)	51,948)	48,835)	50,082)	51,462)	49,579)	45,695)	49,222)	49,139)	50,387)	47,909)	47,715)	47,893)	47,121)	43,123)	27,221)	28,052)	29,357)

Total assets	66,730)	68,271)	68,913)	69,185)	67,061)	68,506)	65,079)	61,784)	66,892)	65,782)	65,315)	65,304)	62,927)	61,868)	62,060)	61,681)	40,717)	40,960)	41,733)
Solvency Ratio
Debt to assets¹	0.71	0.72	0.75	0.71	0.75	0.75	0.76	0.74	0.74	0.75	0.77	0.73	0.76	0.77	0.76	0.70	0.67	0.68	0.70
Benchmarks
Debt to Assets, Competitors²
Coca-Cola Co.	0.39	0.40	0.42	0.43	0.45	0.47	0.48	0.44	0.44	0.43	0.43	0.43	0.41	0.42	0.44	0.42	0.43	0.45	0.44
Mondelēz International Inc.	0.30	0.30	0.30	0.30	0.30	0.29	0.28	0.26	0.27	0.27	0.25	0.27	0.28	0.29	0.31	0.32	0.32	0.29	0.29
PepsiCo Inc.	0.46	0.47	0.48	0.46	0.48	0.49	0.48	0.45	0.45	0.45	0.46	0.44	0.45	0.45	0.45	0.42	0.42	0.42	0.43

¹ Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 47,562 ÷ 66,730 = 0.71

² Click competitor name to see calculations.

Analysis of the solvency position reveals a distinct shift in capital structure occurring in the fourth quarter of 2022. Prior to this period, the leverage profile remained relatively stable, with the debt to assets ratio fluctuating within a narrow band between 0.67 and 0.70.

Capital Structure Expansion: A substantial and simultaneous increase in both total debt and total assets was recorded in December 2022. Total debt rose from 27,221 million to 43,123 million, while total assets increased from 40,717 million to 61,681 million. This synchronized jump indicates a major strategic capital event or acquisition that permanently elevated the scale of the balance sheet.
Leverage Peak and Volatility: Following the 2022 expansion, the debt to assets ratio experienced an upward trend, reaching a peak of 0.77 in June 2023 and again in March 2024. During this window, the growth of total debt outpaced the growth of assets, resulting in a heightened solvency risk profile compared to the baseline observed in early 2022.
Stabilization and Convergence: From mid-2024 through September 2026, the ratio demonstrates a stabilizing trend, generally oscillating between 0.71 and 0.76. A notable improvement in solvency is observed toward the end of the period, with the ratio declining to 0.71 by September 2026. This suggests a period of debt optimization or asset growth that has brought the leverage ratio back in line with pre-expansion levels.

The overall trajectory indicates that while the absolute values of debt and assets have remained significantly higher than 2022 levels, the proportional reliance on debt has been managed to return to a baseline of approximately 71% of total assets.

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Philip Morris International Inc., financial leverage calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	Dec 31, 2025	Sep 30, 2025	Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Selected Financial Data (US$ in millions)
Total assets	66,730)	68,271)	68,913)	69,185)	67,061)	68,506)	65,079)	61,784)	66,892)	65,782)	65,315)	65,304)	62,927)	61,868)	62,060)	61,681)	40,717)	40,960)	41,733)
Total PMI stockholders’ deficit	(7,937)	(8,583)	(9,279)	(9,994)	(10,914)	(11,966)	(10,901)	(11,750)	(9,694)	(9,744)	(10,309)	(11,225)	(9,433)	(9,703)	(8,924)	(8,957)	(9,137)	(9,044)	(10,098)
Solvency Ratio
Financial leverage¹	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Benchmarks
Financial Leverage, Competitors²
Coca-Cola Co.	2.89	2.99	3.10	3.26	3.39	3.65	3.88	4.05	4.01	3.91	3.76	3.77	3.71	3.78	3.86	3.85	4.05	4.05	3.79
Mondelēz International Inc.	2.70	2.67	2.76	2.77	2.73	2.71	2.67	2.54	2.59	2.64	2.73	2.52	2.48	2.51	2.58	2.65	2.55	2.40	2.41
PepsiCo Inc.	5.02	5.08	5.17	5.26	5.50	5.72	5.53	5.51	5.17	5.12	5.25	5.43	5.31	5.42	5.46	5.38	4.98	5.02	5.11

¹ Q3 2026 Calculation
Financial leverage = Total assets ÷ Total PMI stockholders’ deficit
= 66,730 ÷ -7,937 = —

² Click competitor name to see calculations.

The financial structure of the entity is characterized by a persistent stockholders' deficit across the analyzed period, indicating that total liabilities exceed total assets. This condition results in negative shareholders' equity, which fundamentally alters the interpretation of standard financial leverage ratios, as the company is operating with a negative equity base.

Asset Base Evolution: A substantial increase in total assets is observed between September 30, 2022, and December 31, 2022, where values rose from 40,717 million USD to 61,681 million USD. Following this expansion, the asset base remained relatively stable, fluctuating between approximately 61,700 million USD and 69,100 million USD through September 30, 2026. A peak in total assets was recorded on December 31, 2025, at 69,185 million USD, followed by a gradual decline toward the end of the period.
Stockholders' Deficit Trends: The stockholders' deficit remained negative throughout the entire timeframe, reflecting a consistent state of negative net worth. The deficit experienced volatility, reaching its maximum depth of 11,966 million USD on June 30, 2025. However, a positive trend in equity recovery is evident from mid-2025 through September 30, 2026, with the deficit narrowing to 7,937 million USD, the lowest level observed in the reported period.
Financial Leverage and Solvency Implications: Because the equity component is negative, the financial leverage ratio cannot be expressed as a traditional positive multiple of assets to equity. The solvency profile is defined by the relationship between the growing asset base and the fluctuating deficit. The narrowing of the stockholders' deficit toward the end of 2026, coupled with the stabilization of total assets, suggests a trend toward improving the balance sheet structure and reducing the magnitude of the negative equity position.

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