Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Philip Morris International Inc., profitability ratios
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Philip Morris International Inc. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Philip Morris International Inc. operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Philip Morris International Inc. net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Philip Morris International Inc. ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Gross Profit Margin
Philip Morris International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 19,125 | 19,292 | 18,867 | 18,316 | 17,294 | |
| Revenues including excise taxes | 76,047 | 77,921 | 79,823 | 78,098 | 74,953 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 25.15% | 24.76% | 23.64% | 23.45% | 23.07% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 49.80% | 50.62% | 48.31% | 46.73% | 45.02% | |
| Coca-Cola Co. | 59.31% | 60.77% | 63.05% | 62.56% | 60.67% | |
| Mondelēz International Inc. | 39.30% | 39.96% | 39.91% | 38.87% | 39.07% | |
| PepsiCo Inc. | 54.82% | 55.13% | 54.56% | 54.69% | 55.08% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues including excise taxes
= 100 × 19,125 ÷ 76,047 = 25.15%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Philip Morris International Inc. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020. |
Operating Profit Margin
Philip Morris International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 11,668 | 10,531 | 11,377 | 11,503 | 10,815 | |
| Revenues including excise taxes | 76,047 | 77,921 | 79,823 | 78,098 | 74,953 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 15.34% | 13.51% | 14.25% | 14.73% | 14.43% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 41.57% | 41.12% | 35.94% | 37.36% | 34.04% | |
| Coca-Cola Co. | 27.25% | 27.06% | 27.31% | 21.18% | 20.61% | |
| Mondelēz International Inc. | 14.50% | 14.86% | 12.77% | 13.54% | 9.91% | |
| PepsiCo Inc. | 14.32% | 15.32% | 15.64% | 16.54% | 15.58% | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 19.59% | 19.32% | 18.72% | 18.63% | 17.54% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 9.01% | 8.39% | 9.08% | 9.55% | 9.50% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues including excise taxes
= 100 × 11,668 ÷ 76,047 = 15.34%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Philip Morris International Inc. operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Net Profit Margin
Philip Morris International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 8,056 | 7,185 | 7,911 | 6,035 | 6,967 | |
| Revenues including excise taxes | 76,047 | 77,921 | 79,823 | 78,098 | 74,953 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 10.59% | 9.22% | 9.91% | 7.73% | 9.30% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 17.08% | -5.15% | 27.45% | 39.97% | 55.31% | |
| Coca-Cola Co. | 23.47% | 23.94% | 20.20% | 3.52% | 15.59% | |
| Mondelēz International Inc. | 13.37% | 14.96% | 13.03% | 11.28% | 6.40% | |
| PepsiCo Inc. | 10.12% | 10.89% | 19.35% | 7.65% | 10.08% | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 13.33% | 11.14% | 16.34% | 11.06% | 15.44% | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 6.51% | 4.48% | 6.62% | 6.49% | 7.28% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
Net profit margin = 100 × Net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 8,056 ÷ 76,047 = 10.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Philip Morris International Inc. net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Return on Equity (ROE)
Philip Morris International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 8,056 | 7,185 | 7,911 | 6,035 | 6,967 | |
| Total PMI stockholders’ deficit | (12,567) | (11,577) | (12,459) | (12,086) | (12,688) | |
| Profitability Ratio | ||||||
| ROE1 | — | — | — | — | — | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | 157.34% | -20.78% | 47.09% | 66.48% | 111.50% | |
| Coca-Cola Co. | 40.14% | 46.99% | 37.89% | 7.31% | 28.30% | |
| Mondelēz International Inc. | 12.89% | 14.19% | 13.19% | 11.19% | 6.59% | |
| PepsiCo Inc. | 52.92% | 49.47% | 86.20% | 44.60% | 57.04% | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 61.15% | 46.68% | 62.57% | 44.08% | 60.14% | |
| ROE, Industry | ||||||
| Consumer Staples | 34.01% | 22.74% | 30.65% | 29.30% | 31.42% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 8,056 ÷ -12,567 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
Philip Morris International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 8,056 | 7,185 | 7,911 | 6,035 | 6,967 | |
| Total assets | 44,815 | 42,875 | 39,801 | 42,968 | 36,851 | |
| Profitability Ratio | ||||||
| ROA1 | 17.98% | 16.76% | 19.88% | 14.05% | 18.91% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 9.42% | -2.62% | 12.51% | 23.66% | 31.00% | |
| Coca-Cola Co. | 8.87% | 10.33% | 7.73% | 1.42% | 7.48% | |
| Mondelēz International Inc. | 5.24% | 6.00% | 5.39% | 4.63% | 2.70% | |
| PepsiCo Inc. | 7.66% | 9.31% | 16.12% | 6.09% | 8.54% | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.09% | 8.08% | 11.66% | 7.98% | 11.68% | |
| ROA, Industry | ||||||
| Consumer Staples | 8.42% | 6.08% | 8.97% | 8.64% | 9.73% | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 2020 Calculation
ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 8,056 ÷ 44,815 = 17.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Philip Morris International Inc. ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |