Analysis of Short-term (Operating) 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.
Short-term Activity Ratios (Summary)
Turnover Ratios
Average No. Days
Philip Morris International Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 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 operational activity analysis reveals a consistent pattern of long-term inventory holding paired with efficient receivables collection, resulting in a prolonged operating cycle. The ratios demonstrate cyclical fluctuations, with overall efficiency heavily dictated by the movement of inventory.
- Inventory and Operating Cycle Analysis
- Inventory turnover remains relatively low, fluctuating between 1.10 and 1.54. This is reflected in a high average inventory processing period, which consistently remains above 230 days and peaked at 330 days in March 2023. As a result, the operating cycle is extensive, typically ranging between 281 and 371 days, indicating a slow transition from raw materials or goods to realized sales.
- Receivables Management
- The receivables turnover ratio exhibits moderate volatility, with peaks reaching 10.16 in December 2022 and 10.00 in December 2023. The average receivable collection period is managed with high efficiency, generally staying within a narrow band of 36 to 47 days. This rapid collection process mitigates some of the liquidity pressure caused by the slow inventory turnover.
- Payables and Cash Conversion Cycle
- Payables turnover remains stable, generally oscillating between 2.80 and 3.81. The average payables payment period is maintained between 96 and 130 days, suggesting a consistent strategy in managing vendor obligations. The cash conversion cycle remains significantly long, varying from a minimum of 170 days in September 2022 to a maximum of 249 days in March 2023. Although the cycle shows a slight downward trend toward the end of the observed period, the company continues to maintain a substantial timeframe between cash expenditures for inventory and the receipt of cash from customers.
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Inventory Turnover
Philip Morris International Inc., inventory turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Cost of sales | 3,584) | 3,533) | 3,241) | 3,560) | 3,487) | 3,279) | 3,040) | 3,423) | 3,366) | 3,345) | 3,195) | 3,462) | 3,165) | 3,228) | 3,038) | 3,211) | 2,935) | 2,648) | 2,608) | ||||||
| Inventories | 10,326) | 11,436) | 11,392) | 11,478) | 10,267) | 10,728) | 10,127) | 9,453) | 9,355) | 9,382) | 9,970) | 10,774) | 9,645) | 9,900) | 10,712) | 9,886) | 7,153) | 7,551) | 8,684) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | 1.35 | 1.21 | 1.19 | 1.16 | 1.29 | 1.22 | 1.30 | 1.41 | 1.43 | 1.40 | 1.31 | 1.20 | 1.31 | 1.25 | 1.10 | 1.15 | 1.54 | 1.41 | 1.19 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 4.36 | 4.11 | 3.99 | 4.16 | 3.81 | 3.57 | 3.58 | 3.88 | 3.89 | 3.85 | 3.72 | 4.19 | 4.33 | 3.94 | 3.86 | 4.25 | 4.74 | 4.69 | 4.26 | ||||||
| Mondelēz International Inc. | 5.91 | 6.20 | 6.86 | 6.25 | 5.09 | 5.06 | 5.76 | 5.80 | 5.18 | 5.35 | 5.92 | 6.16 | 5.78 | 5.66 | 5.82 | 5.97 | 5.71 | 6.12 | 6.33 | ||||||
| PepsiCo Inc. | 7.00 | 6.63 | 7.06 | 7.37 | 6.98 | 6.44 | 7.32 | 7.87 | 7.38 | 7.12 | 7.57 | 7.85 | 7.59 | 7.01 | 7.22 | 7.77 | 7.83 | 7.26 | 7.95 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Inventory turnover
= (Cost of salesQ3 2026
+ Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025)
÷ Inventories
= (3,584 + 3,533 + 3,241 + 3,560)
÷ 10,326 = 1.35
2 Click competitor name to see calculations.
Cost of sales demonstrates a consistent long-term upward trajectory, increasing from 2,608 million US$ in March 2022 to 3,584 million US$ by September 2026. Inventory levels exhibit higher volatility, generally trending upward from 8,684 million US$ to a peak of 11,478 million US$ in December 2025, before concluding the period at 10,326 million US$ in September 2026.
- Inventory Turnover Volatility
- The inventory turnover ratio fluctuates within a range of 1.10 to 1.54. A cyclical pattern is observed, with efficiency typically peaking in the third quarter of each year and reaching lower points in the first or fourth quarters. The lowest efficiency was recorded in March 2023 at 1.10, while the peak occurred in September 2022 at 1.54.
- Correlation Between Inventory Levels and Turnover
- Inverse movements between inventory stockpiles and turnover ratios are evident. For instance, the rise in turnover from 1.19 to 1.54 between March and September 2022 coincided with a reduction in inventories from 8,684 million US$ to 7,153 million US$. Conversely, the decline in the ratio to 1.16 in December 2025 corresponds with the highest recorded inventory level of 11,478 million US$, indicating a period of slower inventory movement relative to cost of sales.
- Long-term Efficiency Trends
- Despite periodic dips, the turnover ratio has largely stabilized between 1.20 and 1.40 from 2023 through 2026. The most recent observation in September 2026 shows a ratio of 1.35, suggesting a recovery in inventory movement efficiency following the late 2025 decline.
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Receivables Turnover
Philip Morris International Inc., receivables turnover calculation (quarterly data)
| Sep 30, 2026 | 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 revenues | 11,438) | 11,192) | 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) | ||||||
| Trade receivables, less allowances | 5,156) | 5,179) | 5,120) | 4,572) | 4,796) | 4,994) | 4,880) | 3,789) | 4,239) | 4,240) | 4,188) | 3,461) | 3,891) | 4,110) | 3,642) | 3,850) | 3,862) | 3,822) | 3,650) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | 8.37 | 8.21 | 8.10 | 8.89 | 8.34 | 7.82 | 7.87 | 10.00 | 8.78 | 8.60 | 8.58 | 10.16 | 8.81 | 8.07 | 8.80 | 8.25 | 8.21 | 8.32 | 8.65 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 14.30 | 13.43 | 13.41 | 15.78 | 12.08 | 11.29 | 11.46 | 13.19 | 10.95 | 10.22 | 10.86 | 13.42 | 12.88 | 11.12 | 9.46 | 12.33 | 10.60 | 9.19 | 8.65 | ||||||
| Mondelēz International Inc. | 8.11 | 9.89 | 8.94 | 9.87 | 8.99 | 10.52 | 8.44 | 9.41 | 9.51 | 11.37 | 9.04 | 9.91 | 10.12 | 11.63 | 9.39 | 10.20 | 10.80 | 12.11 | 9.94 | ||||||
| PepsiCo Inc. | 7.21 | 7.18 | 7.84 | 8.16 | 7.31 | 7.41 | 8.47 | 8.89 | 7.60 | 7.71 | 8.40 | 8.46 | 7.78 | 7.87 | 8.41 | 8.50 | 7.79 | 7.80 | 8.58 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Receivables turnover
= (Net revenuesQ3 2026
+ Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025)
÷ Trade receivables, less allowances
= (11,438 + 11,192 + 10,146 + 10,362)
÷ 5,156 = 8.37
2 Click competitor name to see calculations.
The analysis of operating activity reveals a period of consistent growth in net revenues, which expanded from 7,746 million US dollars in March 2022 to 11,438 million US dollars by September 2026. This expansion in top-line performance was accompanied by a corresponding increase in trade receivables, which rose from 3,650 million US dollars to 5,156 million US dollars over the same period.
- Receivables Turnover Trends
- The receivables turnover ratio exhibited a pattern of moderate volatility, generally fluctuating between 7.82 and 10.16. A notable cyclical trend is observed at the end of calendar years, with significant peaks occurring in December 2023 (10.16) and December 2024 (10.00), suggesting enhanced collection efficiency or strategic balance sheet management during year-end closures.
- Collection Efficiency Correlation
- Despite the substantial increase in total net revenues, the receivables turnover ratio remained relatively stable, indicating that the growth in trade receivables was largely proportional to the growth in sales. The absence of a long-term downward trend suggests that credit and collection standards were maintained consistently during the period of revenue expansion.
- Recent Performance Observations
- A temporary decline in turnover efficiency occurred during the first half of 2025, with the ratio reaching its lowest point of 7.82 in June 2025. This was followed by a recovery trend, with the ratio climbing back to 8.37 by September 2026, returning the metric to its historical operating mean.
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Payables Turnover
Philip Morris International Inc., payables turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Cost of sales | 3,584) | 3,533) | 3,241) | 3,560) | 3,487) | 3,279) | 3,040) | 3,423) | 3,366) | 3,345) | 3,195) | 3,462) | 3,165) | 3,228) | 3,038) | 3,211) | 2,935) | 2,648) | 2,608) | ||||||
| Accounts payable | 4,036) | 3,919) | 3,927) | 4,407) | 3,978) | 3,870) | 3,749) | 3,952) | 3,511) | 3,591) | 3,648) | 4,143) | 3,533) | 3,786) | 3,945) | 4,076) | 3,342) | 3,279) | 3,203) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | 3.45 | 3.53 | 3.45 | 3.03 | 3.33 | 3.39 | 3.51 | 3.37 | 3.81 | 3.67 | 3.58 | 3.11 | 3.58 | 3.28 | 3.00 | 2.80 | 3.29 | 3.25 | 3.24 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | 2.76 | 2.90 | 2.87 | 2.72 | 2.59 | 2.51 | 2.47 | 2.35 | 2.43 | 2.56 | 2.45 | 2.67 | 2.88 | 2.80 | 2.68 | 2.67 | 2.88 | 2.74 | 2.48 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Payables turnover
= (Cost of salesQ3 2026
+ Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025)
÷ Accounts payable
= (3,584 + 3,533 + 3,241 + 3,560)
÷ 4,036 = 3.45
2 Click competitor name to see calculations.
The analysis of operating activity from March 31, 2022, to September 30, 2026, reveals a general expansion in procurement costs and a fluctuating but overall improving trend in payables management efficiency. Cost of sales exhibited a steady upward trajectory, rising from 2,608 million USD in early 2022 to 3,584 million USD by late 2026, reflecting an increase in the scale of operations or rising input costs over the period.
- Accounts Payable Patterns
- A cyclical pattern is evident in the accounts payable balance, which consistently peaks during the fourth quarter of each year. Notable spikes occurred in December 2022 (4,076 million USD), December 2023 (4,143 million USD), and December 2025 (4,407 million USD). These year-end increases suggest a recurring seasonal buildup of obligations to suppliers, followed by reductions in the first quarter of the subsequent years.
- Payables Turnover Ratio Analysis
- The payables turnover ratio demonstrates varying levels of efficiency in settling short-term obligations. The ratio experienced a significant dip to 2.80 in December 2022, coinciding with the aforementioned peak in accounts payable. However, a period of efficiency gains was observed throughout 2023 and the first half of 2024, with the ratio reaching its peak of 3.81 in September 2024. This indicates a faster rate of payment to suppliers relative to the cost of sales during this window.
- Long-term Stability and Trends
- Following the peak in 2024, the turnover ratio entered a phase of stabilization. Despite a temporary decline to 3.03 in December 2025, the ratio recovered and remained consistently between 3.45 and 3.53 throughout the first three quarters of 2026. This stabilization suggests a more standardized approach to credit management and supplier payment terms compared to the volatility observed between 2022 and 2023.
Overall, the data indicates that while the absolute volume of cost of sales and payables has grown, the company has successfully optimized its turnover rate over the long term, moving from a baseline of approximately 3.24 in early 2022 to a more efficient sustained level of approximately 3.45 by late 2026.
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Working Capital Turnover
Philip Morris International Inc., working capital turnover calculation (quarterly data)
| Sep 30, 2026 | 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) | |||||||||||||||||||||||||
| Current assets | 25,788) | 26,006) | 25,602) | 24,363) | 22,665) | 23,364) | 22,196) | 20,170) | 20,796) | 21,028) | 20,874) | 19,755) | 19,193) | 19,836) | 19,571) | 19,619) | 19,035) | 18,376) | 18,724) | ||||||
| Less: Current liabilities | 25,195) | 26,542) | 26,222) | 25,427) | 26,719) | 28,148) | 28,087) | 22,915) | 23,366) | 22,416) | 22,168) | 26,383) | 21,547) | 23,245) | 22,985) | 27,336) | 20,772) | 20,547) | 20,417) | ||||||
| Working capital | 593) | (536) | (620) | (1,064) | (4,054) | (4,784) | (5,891) | (2,745) | (2,570) | (1,388) | (1,294) | (6,628) | (2,354) | (3,409) | (3,414) | (7,717) | (1,737) | (2,171) | (1,693) | ||||||
| Net revenues | 11,438) | 11,192) | 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) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | 72.75 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 5.60 | 6.53 | 6.15 | 4.91 | 10.04 | 10.09 | 19.78 | 62.92 | 26.97 | 19.89 | 41.66 | 14.47 | 13.02 | 12.70 | 12.35 | 15.00 | 15.68 | 15.83 | 11.91 | ||||||
| Mondelēz International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| PepsiCo Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Working capital turnover
= (Net revenuesQ3 2026
+ Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025)
÷ Working capital
= (11,438 + 11,192 + 10,146 + 10,362)
÷ 593 = 72.75
2 Click competitor name to see calculations.
The financial data reveals a period of sustained revenue growth contrasted with a long-term negative working capital position that only shifts toward positivity in the final quarter of the observed timeframe.
- Net Revenue Trends
- A consistent upward trajectory in net revenues is observed, rising from 7,746 million US$ in March 2022 to 11,438 million US$ by September 2026. This represents a steady expansion of top-line performance over the analyzed period, with growth accelerating particularly between June 2024 and September 2026.
- Working Capital Dynamics
- The entity maintained a negative working capital position for nearly the entire duration of the analysis. Significant deficits are noted at the end of 2022 (7,717 million US$) and 2023 (6,628 million US$), suggesting a recurring year-end pattern of increased current liabilities relative to current assets. However, a notable reversal occurs in the final quarters, with working capital transitioning from a deficit of 536 million US$ in June 2026 to a positive surplus of 593 million US$ by September 2026.
- Working Capital Turnover Analysis
- A working capital turnover ratio of 72.75 is recorded for the period ending September 30, 2026. This high ratio, emerging simultaneously with the shift to positive working capital, indicates a highly efficient conversion of net operating liquidity into revenue during this specific interval.
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Average Inventory Processing Period
Philip Morris International Inc., average inventory processing period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Inventory turnover | 1.35 | 1.21 | 1.19 | 1.16 | 1.29 | 1.22 | 1.30 | 1.41 | 1.43 | 1.40 | 1.31 | 1.20 | 1.31 | 1.25 | 1.10 | 1.15 | 1.54 | 1.41 | 1.19 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average inventory processing period1 | 271 | 302 | 306 | 313 | 283 | 299 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 84 | 89 | 92 | 88 | 96 | 102 | 102 | 94 | 94 | 95 | 98 | 87 | 84 | 93 | 95 | 86 | 77 | 78 | 86 | ||||||
| Mondelēz International Inc. | 62 | 59 | 53 | 58 | 72 | 72 | 63 | 63 | 70 | 68 | 62 | 59 | 63 | 65 | 63 | 61 | 64 | 60 | 58 | ||||||
| PepsiCo Inc. | 52 | 55 | 52 | 50 | 52 | 57 | 50 | 46 | 49 | 51 | 48 | 46 | 48 | 52 | 51 | 47 | 47 | 50 | 46 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.35 = 271
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a cyclical pattern in inventory management, characterized by fluctuating turnover rates and corresponding shifts in the average inventory processing period. The relationship between these two metrics remains inversely proportional throughout the observed timeframe, reflecting periodic adjustments in inventory levels relative to the cost of goods sold.
- Inventory Turnover Trends
- The inventory turnover ratio exhibits significant volatility, ranging from a low of 1.10 in March 2023 to a peak of 1.54 in September 2022. A recurring pattern is observable where turnover increases during the third quarter of each year, typically reaching its highest points in September, followed by a contraction in the first quarter of the subsequent year. For instance, the ratio peaked at 1.54 in September 2022 and 1.43 in September 2024, while dipping to 1.10 in March 2023 and 1.16 in December 2025.
- Average Inventory Processing Period Analysis
- The inventory processing period closely mirrors the turnover fluctuations, with the duration of inventory holdings ranging between 237 and 330 days. The shortest processing period was recorded in September 2022 at 237 days, coinciding with the peak turnover ratio. Conversely, the longest duration occurred in March 2023, reaching 330 days. The data indicates a consistent trend where inventory processing times extend during the winter months and contract during the third quarter, suggesting seasonal variations in supply chain management or demand patterns.
- Operational Efficiency and Stability
- Over the long term, the inventory processing period shows a tendency to oscillate around a mean of approximately 280 to 300 days. While there were periods of improved efficiency, such as the window between June 2024 and December 2024 where the period remained below 260 days, the subsequent rise to 313 days by December 2025 indicates a return to higher inventory holding levels. The most recent data point from September 2026 shows a reduction to 271 days, aligning with the established historical pattern of third-quarter efficiency gains.
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Average Receivable Collection Period
Philip Morris International Inc., average receivable collection period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Receivables turnover | 8.37 | 8.21 | 8.10 | 8.89 | 8.34 | 7.82 | 7.87 | 10.00 | 8.78 | 8.60 | 8.58 | 10.16 | 8.81 | 8.07 | 8.80 | 8.25 | 8.21 | 8.32 | 8.65 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | 44 | 44 | 45 | 41 | 44 | 47 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 26 | 27 | 27 | 23 | 30 | 32 | 32 | 28 | 33 | 36 | 34 | 27 | 28 | 33 | 39 | 30 | 34 | 40 | 42 | ||||||
| Mondelēz International Inc. | 45 | 37 | 41 | 37 | 41 | 35 | 43 | 39 | 38 | 32 | 40 | 37 | 36 | 31 | 39 | 36 | 34 | 30 | 37 | ||||||
| PepsiCo Inc. | 51 | 51 | 47 | 45 | 50 | 49 | 43 | 41 | 48 | 47 | 43 | 43 | 47 | 46 | 43 | 43 | 47 | 47 | 43 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.37 = 44
2 Click competitor name to see calculations.
The analysis of the short-term operating activity indicates a consistent and stable pattern in the management of receivables, characterized by a strong inverse correlation between receivables turnover and the average receivable collection period. The collection cycle demonstrates a recurring seasonal trend, with efficiency peaking at the end of each calendar year.
- Seasonal Collection Patterns
- A distinct cyclical acceleration in receivable collections is observed every December. For the years 2023 and 2024, the average receivable collection period dropped to its lowest points of 36 and 37 days, respectively. This coincides with peak receivables turnover ratios of 10.16 and 10.00 during the same periods, suggesting an intensified effort to settle outstanding invoices at the close of the fiscal year.
- Long-Term Stability and Variance
- Outside of the year-end spikes, the average receivable collection period remains relatively stable, typically fluctuating between 41 and 45 days. A slight expansion in the collection window occurred during the first half of 2025, where the period reached a peak of 47 days by June 30, 2025. This represents the highest collection duration across the analyzed period, indicating a temporary deceleration in cash conversion.
- Turnover Efficiency Trends
- Receivables turnover generally maintains a baseline between 8.0 and 8.8. While the 2022 and 2023 periods showed high consistency, the data from 2025 and 2026 reflects a slight downward shift in the baseline turnover ratio, with values frequently hovering between 7.8 and 8.4. Despite this minor decline, the overall ability to convert receivables into cash remains within a predictable and narrow operating range.
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Operating Cycle
Philip Morris International Inc., operating cycle calculation (quarterly data)
No. days
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Average inventory processing period | 271 | 302 | 306 | 313 | 283 | 299 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | ||||||
| Average receivable collection period | 44 | 44 | 45 | 41 | 44 | 47 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | 315 | 346 | 351 | 354 | 327 | 346 | 327 | 296 | 297 | 302 | 322 | 341 | 319 | 336 | 371 | 360 | 281 | 303 | 348 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 110 | 116 | 119 | 111 | 126 | 134 | 134 | 122 | 127 | 131 | 132 | 114 | 112 | 126 | 134 | 116 | 111 | 118 | 128 | ||||||
| Mondelēz International Inc. | 107 | 96 | 94 | 95 | 113 | 107 | 106 | 102 | 108 | 100 | 102 | 96 | 99 | 96 | 102 | 97 | 98 | 90 | 95 | ||||||
| PepsiCo Inc. | 103 | 106 | 99 | 95 | 102 | 106 | 93 | 87 | 97 | 98 | 91 | 89 | 95 | 98 | 94 | 90 | 94 | 97 | 89 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 271 + 44 = 315
2 Click competitor name to see calculations.
The overall operating cycle demonstrates a recurring pattern of fluctuation, characterized by significant volatility in inventory management offset by a highly stable receivables collection process. The cycle's duration is predominantly dictated by the time required to process inventory, with the total cycle length ranging from a minimum of 281 days to a maximum of 371 days.
- Average Inventory Processing Period
- This metric represents the primary source of variance within the operating cycle. A notable contraction is observed between March 2022 (306 days) and September 2022 (237 days), followed by a sharp increase to a peak of 330 days by March 2023. Throughout the subsequent periods, the processing time remains elevated, generally fluctuating between 255 and 313 days, suggesting a substantial amount of capital tied up in inventory over long durations.
- Average Receivable Collection Period
- The collection period remains remarkably consistent, maintaining a narrow range between 36 and 47 days. While minor fluctuations occur—such as a low of 36 days in December 2023 and a peak of 47 days in June 2025—these changes are negligible in the context of the total operating cycle. This stability indicates a disciplined and predictable credit collection process.
- Operating Cycle Trends
- The total operating cycle closely mirrors the movements of the inventory processing period. The cycle experienced a significant expansion in the first quarter of 2023, reaching 371 days, before stabilizing in the 296 to 327-day range throughout 2024. A subsequent increase is observed moving into 2025, peaking at 354 days in December 2025, before contracting again to 315 days by September 2026. The high correlation between the inventory period and the overall cycle indicates that operational efficiency gains must be focused on inventory turnover to meaningfully reduce the cash conversion window.
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Average Payables Payment Period
Philip Morris International Inc., average payables payment period calculation (quarterly data)
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Payables turnover | 3.45 | 3.53 | 3.45 | 3.03 | 3.33 | 3.39 | 3.51 | 3.37 | 3.81 | 3.67 | 3.58 | 3.11 | 3.58 | 3.28 | 3.00 | 2.80 | 3.29 | 3.25 | 3.24 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | 106 | 103 | 106 | 120 | 110 | 108 | 104 | 108 | 96 | 100 | 102 | 117 | 102 | 111 | 122 | 130 | 111 | 112 | 113 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | 132 | 126 | 127 | 134 | 141 | 145 | 148 | 155 | 150 | 142 | 149 | 136 | 127 | 131 | 136 | 137 | 127 | 133 | 147 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.45 = 106
2 Click competitor name to see calculations.
The analysis of short-term operating activity indicates a fluctuating yet generally tightening cycle regarding the management of accounts payable from March 2022 through September 2026. A consistent inverse correlation is maintained between the payables turnover ratio and the average payables payment period, reflecting strategic shifts in the timing of supplier settlements.
- Payables Turnover Trends
- The turnover ratio exhibited a general upward trajectory from 2022 through 2024, rising from an initial 3.24 to a peak of 3.81 in September 2024. A significant outlier occurred in December 2022, where the ratio contracted to 2.80. In the final two years of the period, the ratio entered a phase of relative stability, oscillating between a low of 3.03 in December 2025 and a high of 3.53 in June 2026.
- Average Payables Payment Period Dynamics
- The payment period began at 113 days in March 2022 and experienced a notable expansion to 130 days by December 2022. Following this peak, a sustained downward trend was observed, with the payment period reaching its lowest point of 96 days in September 2024. A subsequent moderate increase occurred throughout 2025, peaking at 120 days in December 2025, before stabilizing within a narrow range of 103 to 106 days during 2026.
- Working Capital Management Insights
- The compression of the payment period from 130 days in late 2022 to under 100 days in late 2024 suggests an acceleration in the settlement of short-term liabilities. This movement implies a reduction in the reliance on supplier financing during that interval. The eventual stabilization around 106 days in 2026 indicates the establishment of a consistent operational rhythm in managing trade payables, balancing cash preservation with supplier relationship management.
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Cash Conversion Cycle
Philip Morris International Inc., cash conversion cycle calculation (quarterly data)
No. days
| Sep 30, 2026 | 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 | |||||||||||||||||||||||||
| Average inventory processing period | 271 | 302 | 306 | 313 | 283 | 299 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | ||||||
| Average receivable collection period | 44 | 44 | 45 | 41 | 44 | 47 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | ||||||
| Average payables payment period | 106 | 103 | 106 | 120 | 110 | 108 | 104 | 108 | 96 | 100 | 102 | 117 | 102 | 111 | 122 | 130 | 111 | 112 | 113 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Cash conversion cycle1 | 209 | 243 | 245 | 234 | 217 | 238 | 223 | 188 | 201 | 202 | 220 | 224 | 217 | 225 | 249 | 230 | 170 | 191 | 235 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | -25 | -30 | -33 | -39 | -28 | -38 | -42 | -53 | -42 | -42 | -47 | -40 | -28 | -35 | -34 | -40 | -29 | -43 | -52 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 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 Q3 2026 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 271 + 44 – 106 = 209
2 Click competitor name to see calculations.
The cash conversion cycle exhibits significant volatility over the analyzed period, primarily driven by substantial fluctuations in inventory management. The cycle oscillates between a minimum of 170 days in September 2022 and a peak of 249 days in March 2023, indicating a variable timeframe for converting resource inputs into liquid cash.
- Average Inventory Processing Period
- This metric represents the primary driver of volatility within the operating cycle. The period shows marked instability, ranging from 237 days to 330 days. Notable peaks occur in March 2023 and December 2025, while a relative trough is observed between June 2024 and December 2024. These shifts suggest periodic adjustments in stocking levels or supply chain lead times.
- Average Receivable Collection Period
- A high degree of stability is maintained in the collection of receivables. The period consistently ranges between 36 and 47 days, with no significant long-term upward or downward trend. This consistency indicates a disciplined credit policy and a predictable cash inflow pattern from customers.
- Average Payables Payment Period
- Payment terms to suppliers show moderate fluctuation, generally remaining between 96 and 130 days. A contraction in the payment period is observed during 2024, reaching a low of 96 days in September 2024, followed by a gradual extension back toward 120 days by December 2025. This suggests periodic shifts in the company's leverage of supplier credit.
- Cash Conversion Cycle
- The net cash conversion cycle is heavily influenced by the inventory processing period, as the stability of receivable collections and the moderate shifts in payables cannot fully offset inventory swings. While there was a period of relative efficiency and reduction in the cycle through late 2024, the cycle trends upward again in 2025 and early 2026, reflecting a longer duration of capital tied up in operations.
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