Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Paying user area
Try for free
Philip Morris International Inc. pages available for free this week:
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Current Ratio since 2008
- Price to Earnings (P/E) since 2008
- Price to Operating Profit (P/OP) since 2008
- Price to Book Value (P/BV) since 2008
- Price to Sales (P/S) since 2008
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Philip Morris International Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Profitability Ratios (Summary)
Philip Morris International Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 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 profitability profile of the company exhibits a cyclical pattern characterized by a contraction phase from early 2022 through late 2023 or early 2024, followed by a sustained recovery phase extending through mid-2026.
- Gross Profit Margin
- A period of decline was observed from March 2022, where the margin stood at 67.17%, reaching a trough of 62.58% in June 2023. Subsequently, a consistent upward trajectory was established, with the margin returning to and slightly exceeding initial levels to reach 67.51% by June 2026.
- Operating Profit Margin
- The operating margin experienced a significant downward trend, falling from 40.64% in March 2022 to a minimum of 32.85% in December 2023. While a gradual recovery followed, climbing to 37.75% by June 2026, the margin has not yet fully returned to the peaks observed at the start of the analyzed period.
- Net Profit Margin
- Net profitability demonstrated greater volatility than gross margins. Following an initial descent to 22.21% in December 2023, the margin reached a period low of 18.63% in December 2024. This was followed by a recovery trend, with the margin rising to 25.56% by June 2026.
- Return on Assets (ROA)
- ROA mirrored the broader trend of contraction and subsequent rebound. Values declined from a peak of 22.18% in June 2022 to a low of 11.42% in December 2024. A recovery phase began in 2025, leading to a value of 15.93% by June 2026, indicating a partial restoration of asset utilization efficiency.
Return on Sales
Return on Investment
Gross Profit Margin
Philip Morris International Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Gross profit margin = 100
× (Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025)
÷ (Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
Net revenues and gross profit demonstrate a sustained upward trajectory throughout the analyzed period. Net revenues grew from 7,746 million USD in March 2022 to 11,192 million USD by June 2026, while gross profit increased from 5,138 million USD to 7,659 million USD. This overall growth in absolute figures is accompanied by a notable fluctuation in operational efficiency.
- Margin Contraction Phase
- A period of margin compression occurred between March 2022 and June 2023. The gross profit margin declined steadily from a high of 67.17% to a minimum of 62.58%. This suggests that during this phase, the costs associated with generating revenue grew at a faster rate than the revenues themselves.
- Margin Recovery and Expansion Phase
- Beginning in the third quarter of 2023, a consistent recovery trend is evident. The gross profit margin rose from 63.12% in September 2023 to 67.51% by June 2026. This gradual improvement indicates an optimization of the cost structure or an increase in the proportion of higher-margin products within the revenue stream.
- Comparative Profitability Analysis
- The analysis reveals that by June 2026, the company not only recovered the margin losses experienced in 2022 and 2023 but exceeded the initial March 2022 baseline. The simultaneous increase in both net revenues and the gross profit margin in the latter half of the period reflects an improvement in overall profitability and scalable operational efficiency.
Operating Profit Margin
Philip Morris International Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2026 | 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) | ||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025
+ Operating incomeQ3 2025)
÷ (Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
An analysis of the quarterly financial performance reveals a cyclical trend in the operating profit margin, characterized by a significant period of contraction followed by a sustained recovery phase.
- Operating Margin Contraction (2022-2023)
- A consistent downward trend in the operating profit margin is observed from March 31, 2022, to December 31, 2023. The margin declined from a peak of 40.64% to a trough of 32.85%. This compression occurred despite a general increase in net revenues, which grew from 7,746 million USD to 9,047 million USD over the same period, indicating that operating expenses grew at a faster rate than revenue generation.
- Operating Margin Recovery (2024-2026)
- Beginning in the first quarter of 2024, the operating profit margin entered a period of steady expansion. The margin rose from 33.02% in March 2024 to 37.75% by June 30, 2026. This recovery reflects improved operational efficiency and a stronger alignment between revenue growth and operating cost management.
- Revenue and Income Correlation
- Net revenues exhibited a long-term growth trajectory, increasing from 7,746 million USD in early 2022 to 11,192 million USD by mid-2026. While operating income experienced volatility—dropping to a low of 2,566 million USD in June 2023—it rebounded strongly in the latter half of the analyzed period, reaching a peak of 4,530 million USD in June 2026. The synchronization of these two metrics in the 2024-2026 period drove the observed margin improvement.
In summary, the financial data indicates a period of margin pressure that peaked at the end of 2023, followed by a robust two-year recovery. The ability to scale operating income more effectively relative to revenue growth in the final eight quarters suggests a restoration of operational profitability.
Net Profit Margin
Philip Morris International Inc., net profit margin calculation (quarterly data)
| Jun 30, 2026 | 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 earnings attributable to PMI | ||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
Net profit margin = 100
× (Net earnings attributable to PMIQ2 2026
+ Net earnings attributable to PMIQ1 2026
+ Net earnings attributable to PMIQ4 2025
+ Net earnings attributable to PMIQ3 2025)
÷ (Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
An analysis of the financial performance from March 2022 through June 2026 reveals a general expansion in scale coupled with significant fluctuations in profitability margins. Net revenues demonstrated a consistent upward trajectory, growing from 7,746 million USD in the first quarter of 2022 to 11,192 million USD by the second quarter of 2026, indicating a sustained increase in top-line growth over the period.
- Net Profit Margin Trends
- The net profit margin exhibited a period of gradual contraction during the first two years of the analyzed timeframe. Starting at a peak of 28.58% in March 2022, the margin declined steadily to a low of 22.16% by March 2024. This downward trend suggests a period where operating expenses or costs of goods sold grew at a faster rate than net revenues.
- Profitability Volatility and Recovery
- A period of heightened volatility occurred between June 2024 and December 2025. After a brief recovery to 26.42% in September 2024, the margin dropped to 18.63% in December 2024, coinciding with a significant decline in net earnings. However, a strong recovery phase followed throughout 2025, with the margin climbing back to a high of 27.92% by December 2025.
- Net Earnings Correlation
- Net earnings attributable to the company mirrored the volatility of the profit margins. While revenues grew steadily, earnings experienced sharper swings, most notably the deficit recorded in December 2024. The subsequent increase in earnings, reaching 3,478 million USD in September 2025, underscores a successful realignment of profitability relative to the expanded revenue base.
By the end of the observed period in June 2026, the net profit margin settled at 25.56%. While this is lower than the highs seen in 2022 and late 2025, it represents a stabilized level of profitability supported by a significantly larger revenue stream compared to the start of the analysis period.
Return on Equity (ROE)
Philip Morris International Inc., ROE calculation (quarterly data)
| Jun 30, 2026 | 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 earnings attributable to PMI | ||||||||||||||||||||||||
| Total PMI stockholders’ deficit | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
ROE = 100
× (Net earnings attributable to PMIQ2 2026
+ Net earnings attributable to PMIQ1 2026
+ Net earnings attributable to PMIQ4 2025
+ Net earnings attributable to PMIQ3 2025)
÷ Total PMI stockholders’ deficit
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance of Philip Morris International is characterized by a consistent pattern of positive net earnings juxtaposed against a persistent stockholders' deficit. This capital structure results in a negative book value, which fundamentally alters the interpretation of profitability ratios such as Return on Equity (ROE).
- Net Earnings Trends
- Net earnings remained relatively stable throughout 2022 and 2023, generally fluctuating between 1.5 billion and 2.4 billion US dollars. A period of increased volatility occurred in 2024, where earnings peaked at 3.082 billion US dollars in September before plummeting to a net loss of 579 million US dollars in December. Recovery was observed in 2025, with earnings reaching a peak of 3.478 billion US dollars in September before continuing at a robust level into mid-2026.
- Stockholders' Equity Position
- A continuous stockholders' deficit is maintained across the entire analyzed period. The deficit fluctuated between a high of 8.583 billion US dollars in June 2026 and a low of 11.966 billion US dollars in June 2025. The deepening of the deficit in late 2023 and mid-2025 suggests aggressive capital return strategies or accounting adjustments that outweigh retained earnings.
- Return on Equity (ROE) Interpretation
- Because the stockholders' equity is consistently negative, the standard ROE calculation produces results that are inverse to traditional interpretations. During quarters of positive net income, the ROE is mathematically negative despite the company being profitable. Conversely, the net loss recorded in December 2024, when divided by the negative equity deficit, would yield a mathematically positive ROE, creating an accounting paradox. This indicates that the company operates with a highly leveraged capital structure where assets are funded primarily through liabilities rather than equity.
Return on Assets (ROA)
Philip Morris International Inc., ROA calculation (quarterly data)
| Jun 30, 2026 | 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 earnings attributable to PMI | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | ||||||||||||||||||||||||
| Mondelēz International Inc. | ||||||||||||||||||||||||
| PepsiCo Inc. | ||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 Q2 2026 Calculation
ROA = 100
× (Net earnings attributable to PMIQ2 2026
+ Net earnings attributable to PMIQ1 2026
+ Net earnings attributable to PMIQ4 2025
+ Net earnings attributable to PMIQ3 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The return on assets (ROA) exhibits a distinct three-phase trajectory characterized by an initial sharp contraction, a period of stagnation, and a subsequent recovery. The overall trend reveals a shift from a high-efficiency period exceeding 20% in early 2022 to a lower baseline, eventually stabilizing in the 15-16% range by mid-2026.
- Asset Base Expansion and Initial ROA Compression
- A significant decline in ROA is observed between September 2022 and December 2022, where the ratio dropped from 21.48% to 14.67%. This compression was primarily driven by a substantial increase in total assets, which rose from 40,717 million USD to 61,681 million USD during that quarter. The rapid expansion of the asset base outpaced net earnings growth, leading to a dilution of asset productivity.
- Stabilization and Earnings Volatility
- From March 2023 through early 2024, ROA remained relatively stagnant, fluctuating between 11.96% and 14.04%. A notable performance dip occurred in December 2024, where ROA fell to 11.42%. This decline directly correlates with a reported net loss of 579 million USD for that period, marking the only instance of negative net earnings within the analyzed timeframe.
- Recovery and Efficiency Gains
- A consistent upward trend in profitability is evident starting in March 2025. ROA climbed from 11.68% to a peak of 16.40% by December 2025. This recovery was supported by a strong increase in net earnings, which reached a peak of 3,478 million USD in September 2025. Despite a slight moderation in early 2026, the ROA maintained a stabilized level around 15.93% to 16.10%, indicating improved operational efficiency relative to the expanded asset base.