Stock Analysis on Net

Philip Morris International Inc. (NYSE:PM)

Analysis of Profitability Ratios

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Philip Morris International Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 25.15% 24.76% 23.64% 23.45% 23.07%
Operating profit margin 15.34% 13.51% 14.25% 14.73% 14.43%
Net profit margin 10.59% 9.22% 9.91% 7.73% 9.30%
Return on Investment
Return on equity (ROE)
Return on assets (ROA) 17.98% 16.76% 19.88% 14.05% 18.91%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.