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: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| 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 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Philip Morris International Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Philip Morris International Inc. net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Philip Morris International Inc. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Philip Morris International Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 20,360) | 21,375) | 19,125) | 19,292) | 18,867) | |
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 25.24% | 26.00% | 25.15% | 24.76% | 23.64% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 56.77% | 53.79% | 49.80% | 50.62% | — | |
| Coca-Cola Co. | 58.14% | 60.27% | 59.31% | 60.77% | — | |
| Mondelēz International Inc. | 35.92% | 39.19% | 39.30% | 39.96% | — | |
| PepsiCo Inc. | 53.03% | 53.35% | 54.82% | 55.13% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues including excise taxes
= 100 × 20,360 ÷ 80,669 = 25.24%
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 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Operating Profit Margin
Philip Morris International Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 12,246) | 12,975) | 11,668) | 10,531) | 11,377) | |
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 15.18% | 15.78% | 15.34% | 13.51% | 14.25% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 47.49% | 44.44% | 41.57% | 41.12% | — | |
| Coca-Cola Co. | 25.37% | 26.67% | 27.25% | 27.06% | — | |
| Mondelēz International Inc. | 11.22% | 16.20% | 14.50% | 14.86% | — | |
| PepsiCo Inc. | 13.33% | 14.04% | 14.32% | 15.32% | — | |
| Operating Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 20.36% | 21.80% | 21.65% | 22.23% | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Staples | 8.47% | 8.40% | 8.12% | 7.40% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Revenues including excise taxes
= 100 × 12,246 ÷ 80,669 = 15.18%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Profit Margin
Philip Morris International Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 9,048) | 9,109) | 8,056) | 7,185) | 7,911) | |
| Revenues including excise taxes | 80,669) | 82,223) | 76,047) | 77,921) | 79,823) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 11.22% | 11.08% | 10.59% | 9.22% | 9.91% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Altria Group Inc. | 22.97% | 9.51% | 17.08% | -5.15% | — | |
| Coca-Cola Co. | 22.19% | 25.28% | 23.47% | 23.94% | — | |
| Mondelēz International Inc. | 8.63% | 14.97% | 13.37% | 14.96% | — | |
| PepsiCo Inc. | 10.31% | 9.59% | 10.12% | 10.89% | — | |
| Net Profit Margin, Sector | ||||||
| Food, Beverage & Tobacco | 14.48% | 13.98% | 14.66% | 12.10% | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Staples | 5.87% | 5.64% | 5.88% | 3.76% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Net profit margin = 100 × Net earnings attributable to PMI ÷ Revenues including excise taxes
= 100 × 9,048 ÷ 80,669 = 11.22%
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 improved from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Philip Morris International Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 9,048) | 9,109) | 8,056) | 7,185) | 7,911) | |
| Total PMI stockholders’ deficit | (8,957) | (10,106) | (12,567) | (11,577) | (12,459) | |
| Profitability Ratio | ||||||
| ROE1 | — | — | — | — | — | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Altria Group Inc. | — | — | 157.34% | -20.78% | — | |
| Coca-Cola Co. | 39.59% | 42.48% | 40.14% | 46.99% | — | |
| Mondelēz International Inc. | 10.11% | 15.21% | 12.89% | 14.19% | — | |
| PepsiCo Inc. | 51.96% | 47.48% | 52.92% | 49.47% | — | |
| ROE, Sector | ||||||
| Food, Beverage & Tobacco | 41.98% | 36.78% | 36.23% | 27.97% | — | |
| ROE, Industry | ||||||
| Consumer Staples | 29.95% | 27.27% | 27.08% | 16.85% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROE = 100 × Net earnings attributable to PMI ÷ Total PMI stockholders’ deficit
= 100 × 9,048 ÷ -8,957 = —
2 Click competitor name to see calculations.
Return on Assets (ROA)
Philip Morris International Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to PMI | 9,048) | 9,109) | 8,056) | 7,185) | 7,911) | |
| Total assets | 61,681) | 41,290) | 44,815) | 42,875) | 39,801) | |
| Profitability Ratio | ||||||
| ROA1 | 14.67% | 22.06% | 17.98% | 16.76% | 19.88% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Altria Group Inc. | 15.60% | 6.26% | 9.42% | -2.62% | — | |
| Coca-Cola Co. | 10.29% | 10.36% | 8.87% | 10.33% | — | |
| Mondelēz International Inc. | 3.82% | 6.41% | 5.24% | 6.00% | — | |
| PepsiCo Inc. | 9.67% | 8.25% | 7.66% | 9.31% | — | |
| ROA, Sector | ||||||
| Food, Beverage & Tobacco | 9.19% | 8.24% | 7.75% | 6.75% | — | |
| ROA, Industry | ||||||
| Consumer Staples | 8.81% | 7.91% | 7.73% | 5.14% | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
ROA = 100 × Net earnings attributable to PMI ÷ Total assets
= 100 × 9,048 ÷ 61,681 = 14.67%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |