Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2008
- Total Asset Turnover since 2008
- Price to Operating Profit (P/OP) since 2008
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Philip Morris International Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 long-term investment activity ratios exhibit varied trends over the five-year period. Generally, the ratios suggest fluctuations in the efficiency with which assets are utilized to generate revenue.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 5.09 in 2021 to 4.68 in 2023, indicating a declining ability to generate sales from fixed assets. However, the ratio increased to 5.18 in 2024 before slightly decreasing to 4.84 in 2025. This suggests a potential improvement in fixed asset utilization in 2024, followed by a modest pullback.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also demonstrated a decline from 4.69 in 2021 to 4.32 in 2023. A subsequent increase to 4.80 in 2024 was observed, followed by a decrease to 4.48 in 2025. The inclusion of operating lease and right-of-use assets appears to result in lower turnover figures compared to the standard calculation, and the trend mirrors the standard ratio, suggesting the changes are not solely driven by lease accounting.
- Total Asset Turnover
- The total asset turnover ratio experienced a more pronounced decrease, falling from 0.76 in 2021 to 0.51 in 2022. A modest recovery occurred in 2023 and 2024, reaching 0.54 and 0.61 respectively, but the ratio settled at 0.59 in 2025. This indicates a general trend of decreasing efficiency in utilizing all assets to generate sales, although some improvement was seen in the latter years of the period.
- Equity Turnover
- Values for the equity turnover ratio are not available for any of the years presented, precluding any analysis of this metric.
Overall, the observed trends suggest a period of fluctuating asset utilization efficiency. While some ratios showed improvement in 2024, the overall picture indicates a need for continued monitoring of asset management strategies.
Net Fixed Asset Turnover
Philip Morris International Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Property, plant and equipment, less accumulated depreciation | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
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
Net fixed asset turnover = Net revenues ÷ Property, plant and equipment, less accumulated depreciation
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibited a fluctuating pattern over the five-year period. While net revenues generally increased, the relationship between revenues and net fixed assets was not consistently upward. Initial observations suggest a moderate decline followed by a recovery, and then a slight decrease again.
- Net Fixed Asset Turnover Trend
- The ratio began at 5.09 in 2021, indicating that for every dollar of net fixed assets, approximately $5.09 in revenue was generated. A decrease was observed in 2022, with the ratio falling to 4.73. This decline continued modestly in 2023, reaching 4.68. A notable increase occurred in 2024, with the ratio rising to 5.18, surpassing the initial 2021 level. However, the ratio decreased slightly in 2025, settling at 4.84.
The increase in net revenues from 2021 to 2025 is evident. However, the corresponding changes in property, plant, and equipment, less accumulated depreciation, did not consistently support a rising turnover ratio. The slight decrease in the ratio from 2022 to 2023, despite revenue growth, suggests a potentially faster increase in net fixed assets than in revenues during that period. The substantial increase in the ratio in 2024 indicates improved efficiency in utilizing fixed assets to generate revenue, but this improvement was not sustained into 2025.
- Relationship to Revenue Growth
- While revenues increased each year, the net fixed asset turnover ratio did not demonstrate a corresponding consistent upward trend. This suggests that the company’s investment in fixed assets did not always align perfectly with revenue generation. The 2024 increase in the ratio, coinciding with a significant revenue increase, highlights a period of efficient asset utilization. The subsequent decrease in 2025 warrants further investigation to determine if it signals a shift in asset utilization efficiency or is a temporary fluctuation.
Overall, the net fixed asset turnover ratio indicates a generally efficient use of fixed assets, but with some variability. The fluctuations suggest that factors beyond simple revenue growth, such as changes in asset base and operational efficiency, play a significant role in determining the ratio’s value.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Philip Morris International Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Property, plant and equipment, less accumulated depreciation | ||||||
| Operating lease right-of-use asset (included in Other assets) | ||||||
| Property, plant and equipment, less accumulated depreciation (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Consumer Staples | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property, plant and equipment, less accumulated depreciation (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, alongside its component financial items, exhibits a fluctuating pattern over the five-year period. Net revenues demonstrate a consistent upward trajectory, while the value of property, plant, and equipment, inclusive of operating leases and right-of-use assets, shows an overall increase with a slight dip in the fourth year.
- Net Revenues
- Net revenues increased from US$31,405 million in 2021 to US$40,648 million in 2025. This represents a cumulative growth of approximately 29.4% over the period, indicating a strong revenue generation capability. The growth appears relatively steady year-over-year.
- Property, Plant, and Equipment (Including Operating Lease, Right-of-Use Asset)
- The reported value of property, plant, and equipment increased from US$6,694 million in 2021 to US$9,076 million in 2025. This signifies an expansion of the company’s fixed asset base. However, a decrease is observed in 2024, falling to US$7,895 million before recovering in the subsequent year. This fluctuation warrants further investigation to understand the underlying causes, such as potential asset disposals or reclassifications.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio decreased from 4.69 in 2021 to 4.35 in 2022, and remained relatively stable at 4.32 in 2023. A notable increase to 4.80 is then observed in 2024, followed by a slight decline to 4.48 in 2025. This indicates that the company’s efficiency in generating revenue from its fixed assets has varied over the period. While the ratio generally remains above 4.0, suggesting reasonable asset utilization, the fluctuations suggest a sensitivity to changes in both revenue and the asset base. The 2024 increase coincides with the dip in fixed asset value, suggesting a disproportionate revenue increase relative to the asset base that year.
In summary, the company demonstrates consistent revenue growth alongside an expanding fixed asset base. The net fixed asset turnover ratio shows variability, influenced by the interplay between revenue generation and asset investment. The dip in fixed assets in 2024, coupled with the corresponding increase in turnover, is a key observation requiring further scrutiny.
Total Asset Turnover
Philip Morris International Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Total Asset Turnover, Industry | ||||||
| Consumer Staples | ||||||
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
Total asset turnover = Net revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited fluctuating performance over the five-year period. Initial values decreased significantly before stabilizing and showing modest improvement. A review of the underlying components, net revenues and total assets, provides context for these movements.
- Total Asset Turnover Trend
- The ratio began at 0.76 in 2021, representing a relatively efficient utilization of assets to generate revenue. A substantial decline to 0.51 was observed in 2022. This decrease suggests a less efficient use of assets in that year. The ratio partially recovered to 0.54 in 2023, indicating a slight improvement in asset utilization. Further improvement was seen in 2024, with the ratio reaching 0.61. However, this positive trend was not sustained, as the ratio decreased slightly to 0.59 in 2025.
- Revenue Influence
- Net revenues demonstrated a consistent upward trend throughout the period, increasing from US$31,405 million in 2021 to US$40,648 million in 2025. This revenue growth would typically suggest an improving asset turnover. However, the impact of revenue growth was offset by changes in total asset levels.
- Asset Influence
- Total assets increased significantly from 2021 to 2022, rising from US$41,290 million to US$61,681 million. This substantial increase in assets, without a proportional increase in revenue, contributed to the sharp decline in the total asset turnover ratio in 2022. Asset levels decreased in 2024, which contributed to the ratio’s improvement that year. A subsequent increase in total assets in 2025 partially offset the positive impact of continued revenue growth, resulting in a slight decrease in the ratio.
The fluctuations in the total asset turnover ratio appear to be more closely linked to changes in total asset levels than to changes in net revenues. The company experienced a period of significant asset accumulation in 2022, which negatively impacted the ratio. While revenue growth has been consistent, the efficiency with which assets are used to generate that revenue has varied.
Equity Turnover
Philip Morris International Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenues | ||||||
| Total PMI stockholders’ deficit | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Coca-Cola Co. | ||||||
| Mondelēz International Inc. | ||||||
| PepsiCo Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Food, Beverage & Tobacco | ||||||
| Equity Turnover, Industry | ||||||
| Consumer Staples | ||||||
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
Equity turnover = Net revenues ÷ Total PMI stockholders’ deficit
= ÷ =
2 Click competitor name to see calculations.
Net revenues exhibited a consistent upward trajectory over the five-year period. Total stockholders’ deficit fluctuated, initially decreasing, then increasing, and finally showing a decrease in the most recent year. The equity turnover ratio, however, is not populated with values, preventing a direct assessment of its trend or contribution to understanding the company’s financial performance.
- Net Revenues
- Net revenues increased from US$31,405 million in 2021 to US$40,648 million in 2025. This represents a cumulative growth of approximately 29.4% over the period. The year-over-year growth rates were positive each year, indicating sustained revenue expansion.
- Total Stockholders’ Deficit
- The total stockholders’ deficit began at -US$10,106 million in 2021, decreased to -US$8,957 million in 2022, then increased to -US$11,225 million in 2023 and -US$11,750 million in 2024. A decrease to -US$9,994 million was observed in 2025. This pattern suggests volatility in the company’s equity position, potentially influenced by factors such as share repurchases, dividend payments, or retained earnings.
- Equity Turnover
- The equity turnover ratio is absent for all reported years. This ratio, calculated as net revenues divided by total stockholders’ equity (or, in this case, the absolute value of the deficit), provides insight into how efficiently a company generates revenue from its equity base. Without this information, it is impossible to evaluate the company’s effectiveness in utilizing its equity to drive sales.
The absence of equity turnover values limits a comprehensive assessment of the company’s long-term investment activity. While revenue growth is apparent, understanding the relationship between revenue and equity requires the inclusion of this key financial ratio.