Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Philip Morris International Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analysis of investment activity ratios reveals a divergence between the efficiency of fixed asset utilization and the efficiency of the total asset base. While fixed asset productivity remained relatively stable with moderate fluctuations, the total asset turnover experienced a significant structural shift in late 2022, establishing a new, lower baseline for asset productivity throughout the subsequent periods.
- Net Fixed Asset Turnover
- This ratio exhibited a period of volatility between March 2022 and December 2023, peaking at 5.65 in September 2022 before reaching a low of 4.68 by the end of 2023. From January 2024 through March 2026, the ratio stabilized, consistently fluctuating within a narrow band between 4.84 and 5.18. This pattern suggests a consistent capacity to generate revenue relative to the investment in net fixed assets after the initial period of instability.
- Total Asset Turnover
- A sharp contraction in total asset efficiency is observed between September 30, 2022, and December 31, 2022, where the ratio fell from 0.78 to 0.51. Following this decline, the ratio entered a phase of gradual recovery and stabilization, oscillating between 0.54 and 0.61 from 2023 through early 2026. The sustained lower level of this ratio compared to early 2022 indicates a significant increase in the total asset base that has not been matched by a proportional increase in revenue.
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Net Fixed Asset Turnover
Philip Morris International Inc., net fixed asset turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| Net revenues | 10,146) | 10,362) | 10,845) | 10,140) | 9,301) | 9,706) | 9,911) | 9,468) | 8,793) | 9,047) | 9,141) | 8,967) | 8,019) | 8,152) | 8,032) | 7,832) | 7,746) | ||||||
| Property, plant and equipment, less accumulated depreciation | 8,259) | 8,397) | 8,115) | 8,043) | 7,532) | 7,310) | 7,548) | 7,264) | 7,201) | 7,516) | 6,883) | 6,991) | 6,788) | 6,710) | 5,610) | 5,965) | 6,004) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 5.02 | 4.84 | 4.93 | 4.86 | 5.10 | 5.18 | 4.93 | 5.02 | 4.99 | 4.68 | 4.98 | 4.74 | 4.72 | 4.73 | 5.65 | 5.33 | 5.26 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 5.18 | 4.99 | 4.37 | 4.36 | 4.50 | 4.57 | 4.70 | 4.89 | 4.95 | 4.95 | 5.08 | 4.55 | 4.42 | 4.37 | 4.58 | 4.37 | 4.10 | ||||||
| Mondelēz International Inc. | 3.72 | 3.61 | 3.64 | 3.60 | 3.73 | 3.84 | 3.73 | 3.79 | 3.77 | 3.72 | 3.87 | 3.67 | 3.60 | 3.49 | 3.53 | 3.41 | 3.24 | ||||||
| PepsiCo Inc. | 3.20 | 3.14 | 3.18 | 3.19 | 3.24 | 3.28 | 3.38 | 3.40 | 3.43 | 3.38 | 3.69 | 3.68 | 3.63 | 3.56 | 3.67 | 3.61 | 3.67 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025
+ Net revenuesQ2 2025)
÷ Property, plant and equipment, less accumulated depreciation
= (10,146 + 10,362 + 10,845 + 10,140)
÷ 8,259 = 5.02
2 Click competitor name to see calculations.
Analysis of net fixed asset turnover reveals a period of volatility followed by relative stabilization as the organization expanded its long-term asset base in tandem with revenue growth.
- Revenue and Asset Trends
- Net revenues exhibited a general upward trajectory, increasing from 7,746 million US$ in March 2022 to a peak of 10,845 million US$ in September 2025, before concluding at 10,146 million US$ in March 2026. During this same window, net property, plant, and equipment grew from 6,004 million US$ to 8,259 million US$. A notable surge in fixed asset value is observed between September 2022 and December 2022, where assets rose from 5,610 million US$ to 6,710 million US$.
- Net Fixed Asset Turnover Performance
- The net fixed asset turnover ratio reached an early peak of 5.65 in September 2022. Immediately following the increase in fixed assets in late 2022, the ratio contracted to 4.73 by December 2022 and remained suppressed between 4.72 and 4.74 through June 2023. This decline indicates a period where asset expansion outpaced immediate revenue generation, leading to a temporary reduction in asset utilization efficiency.
- Operational Efficiency and Stabilization
- From March 2024 through March 2026, the turnover ratio stabilized, fluctuating within a tight range between 4.84 and 5.18. This stabilization suggests that the organization successfully aligned its revenue growth with its capital investment strategy. The consistent ratio in the final two years of the period indicates a sustainable balance between the scale of long-term investments and the resulting sales volume.
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Total Asset Turnover
Philip Morris International Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net revenues | 10,146) | 10,362) | 10,845) | 10,140) | 9,301) | 9,706) | 9,911) | 9,468) | 8,793) | 9,047) | 9,141) | 8,967) | 8,019) | 8,152) | 8,032) | 7,832) | 7,746) | ||||||
| Total assets | 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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.60 | 0.59 | 0.60 | 0.57 | 0.59 | 0.61 | 0.56 | 0.55 | 0.55 | 0.54 | 0.54 | 0.54 | 0.52 | 0.51 | 0.78 | 0.78 | 0.76 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 0.47 | 0.46 | 0.45 | 0.45 | 0.46 | 0.47 | 0.44 | 0.46 | 0.46 | 0.47 | 0.46 | 0.45 | 0.45 | 0.46 | 0.46 | 0.44 | 0.43 | ||||||
| Mondelēz International Inc. | 0.55 | 0.54 | 0.53 | 0.52 | 0.53 | 0.53 | 0.50 | 0.49 | 0.47 | 0.50 | 0.50 | 0.47 | 0.45 | 0.44 | 0.45 | 0.45 | 0.43 | ||||||
| PepsiCo Inc. | 0.86 | 0.87 | 0.87 | 0.87 | 0.90 | 0.92 | 0.91 | 0.92 | 0.92 | 0.91 | 0.92 | 0.94 | 0.95 | 0.94 | 0.89 | 0.88 | 0.87 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Total asset turnover
= (Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025
+ Net revenuesQ2 2025)
÷ Total assets
= (10,146 + 10,362 + 10,845 + 10,140)
÷ 68,913 = 0.60
2 Click competitor name to see calculations.
The overall trend in asset utilization is characterized by a significant structural reset in late 2022, followed by a sustained period of incremental recovery in efficiency over the subsequent quarters.
- Asset Base Expansion and Initial Impact
- A sharp contraction in total asset turnover is observed between September 30, 2022, and December 31, 2022, where the ratio declined from 0.78 to 0.51. This decline correlates with a substantial increase in total assets, which rose from 40,717 million USD to 61,681 million USD within a single quarter. This indicates a major capital expansion or acquisition that increased the asset base more rapidly than immediate revenue generation could offset.
- Revenue Growth and Efficiency Recovery
- Following the asset expansion, a consistent upward trend in the turnover ratio is evident. From March 31, 2023, with a ratio of 0.52, the figure gradually climbed to 0.60 by March 31, 2026. This recovery is driven by steady growth in net revenues, which rose from approximately 8,019 million USD in March 2023 to 10,146 million USD by March 2026, reflecting a progressive improvement in the ability to generate sales from the expanded asset base.
- Long-term Stability and Convergence
- During the 2024 to 2026 period, the asset turnover ratio exhibited a stabilization pattern, fluctuating within a narrow range between 0.57 and 0.61. Despite total assets reaching a peak of 69,185 million USD in December 2025, the ratio remained resilient, suggesting that revenue growth is scaling effectively in proportion to the increased investment in assets.
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Equity Turnover
Philip Morris International Inc., equity turnover calculation (quarterly data)
| 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) | |||||||||||||||||||||||
| Net revenues | 10,146) | 10,362) | 10,845) | 10,140) | 9,301) | 9,706) | 9,911) | 9,468) | 8,793) | 9,047) | 9,141) | 8,967) | 8,019) | 8,152) | 8,032) | 7,832) | 7,746) | ||||||
| Total PMI stockholders’ deficit | (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) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Coca-Cola Co. | 1.47 | 1.49 | 1.53 | 1.65 | 1.79 | 1.89 | 1.75 | 1.80 | 1.74 | 1.76 | 1.71 | 1.70 | 1.72 | 1.78 | 1.86 | 1.80 | 1.62 | ||||||
| Mondelēz International Inc. | 1.53 | 1.49 | 1.44 | 1.42 | 1.41 | 1.35 | 1.30 | 1.30 | 1.27 | 1.27 | 1.24 | 1.19 | 1.17 | 1.17 | 1.14 | 1.09 | 1.04 | ||||||
| PepsiCo Inc. | 4.46 | 4.60 | 4.76 | 4.98 | 4.98 | 5.09 | 4.73 | 4.73 | 4.82 | 4.94 | 4.87 | 5.10 | 5.17 | 5.04 | 4.41 | 4.41 | 4.44 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Equity turnover
= (Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025
+ Net revenuesQ2 2025)
÷ Total PMI stockholders’ deficit
= (10,146 + 10,362 + 10,845 + 10,140)
÷ -9,279 = —
2 Click competitor name to see calculations.
An analysis of the financial data reveals a consistent upward trajectory in net revenues contrasted with a persistent stockholders' deficit. Net revenues demonstrated steady growth over the observed period, rising from 7,746 million USD in March 2022 to 10,146 million USD by March 2026. Notable peaks in revenue generation occurred in September 2024 (9,911 million USD) and September 2025 (10,845 million USD), indicating a cyclical pattern of increased performance in the third quarter of each fiscal year.
The company's equity position remained negative throughout the entire duration, characterized by a continuous stockholders' deficit. This deficit exhibited significant volatility, reaching its lowest point in June 2025 at -11,966 million USD before recovering to -9,279 million USD by March 2026. The persistence of negative equity suggests a capital structure where total liabilities exceed total assets, often associated with aggressive share repurchase programs or significant dividend distributions exceeding retained earnings.
- Net Revenue Growth Trend
- A sustained increase in top-line performance is observed, with revenues growing by approximately 31% between March 2022 and March 2026. The growth pattern is relatively stable, with only minor quarterly fluctuations, suggesting a robust expansion of market reach or pricing power.
- Equity Deficit Dynamics
- The stockholders' deficit fluctuated between a high of -8,924 million USD (March 2023) and a low of -11,966 million USD (June 2025). The trend indicates periods of deficit expansion followed by partial recoveries, reflecting changes in the company's financing activities or equity-based capital allocations.
- Equity Turnover Interpretation
- Due to the consistent presence of a stockholders' deficit, a standard positive equity turnover ratio cannot be established. The mathematical result of dividing positive net revenues by negative equity yields a negative ratio, which renders traditional efficiency interpretation obsolete. Instead, the relationship indicates that the company is generating increasing levels of revenue without a positive equity base, signifying high financial leverage.
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