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)
Philip Morris International Inc., short-term (operating) activity 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 analysis of short-term operating activity ratios reveals a business model characterized by a prolonged inventory holding period, offset by efficient receivables collection and extended payables management. Operating efficiency exhibits cyclical patterns, with significant fluctuations in the cash conversion cycle driven primarily by inventory dynamics.
- Inventory Management and Turnover
- Inventory turnover ratios fluctuate within a narrow range between 1.10 and 1.54, indicating a relatively slow movement of goods. This is reflected in the average inventory processing period, which remains high, frequently exceeding 300 days and peaking at 330 days in March 2023. A recurring seasonal pattern is observable, where processing periods tend to contract in the third quarter of the year and expand during the first quarter.
- Receivables and Collection Efficiency
- The receivables turnover remains robust and relatively stable, generally fluctuating between 7.82 and 10.16. The average receivable collection period is consistently low, ranging from 36 to 47 days. This indicates a highly efficient credit management system and a rapid conversion of accounts receivable into cash, providing a steady source of short-term liquidity.
- Payables and Credit Utilization
- Payables turnover shows a gradual upward trend through 2024, peaking at 3.81 in September 2024 before stabilizing. The average payables payment period typically ranges between 96 and 130 days. By maintaining payment terms that significantly exceed the collection period of receivables, the organization effectively leverages supplier credit to fund its operational requirements.
- Operating and Cash Conversion Cycles
- The operating cycle is predominantly driven by the slow inventory processing period, with durations ranging from 281 to 371 days. Consequently, the cash conversion cycle remains substantial, fluctuating between 170 and 249 days. While the efficient collection of receivables helps, the overall cycle is heavily weighted by the time required to move inventory, though the extended payables period serves as a critical mitigating factor in reducing the total cash gap.
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Turnover Ratios
Average No. Days
Inventory Turnover
Philip Morris International Inc., inventory turnover 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) | ||||||||||||||||||||||||
| Cost of sales | 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 | 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 | 1.21 | 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. | 4.11 | 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. | 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. | 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: 2026-06-30), 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
Inventory turnover
= (Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025
+ Cost of salesQ3 2025)
÷ Inventories
= (3,533 + 3,241 + 3,560 + 3,487)
÷ 11,436 = 1.21
2 Click competitor name to see calculations.
The operational data indicates a general upward trajectory in both the cost of sales and total inventory levels over the analyzed period from March 2022 to June 2026, while the inventory turnover ratio exhibits a cyclical pattern of fluctuation within a defined range.
- Cost of Sales Trends
- A consistent long-term increase in the cost of sales is observed, rising from 2,608 million USD in March 2022 to 3,533 million USD by June 2026. This growth represents a steady expansion in the costs associated with the production and distribution of goods, reflecting an increase in operational scale or inflationary pressure on raw materials and logistics.
- Inventory Level Fluctuations
- Inventory holdings demonstrate significant volatility, starting at 8,684 million USD and ending at 11,436 million USD. Notable peaks occurred in December 2023 (10,774 million USD) and December 2025 (11,478 million USD), suggesting a strategic buildup of stock toward the end of the calendar year. Conversely, the lowest inventory levels were recorded in the second and third quarters of 2022, specifically reaching a minimum of 7,153 million USD in September 2022.
- Inventory Turnover Performance
- The inventory turnover ratio fluctuates between a minimum of 1.10 and a maximum of 1.54. A recurring seasonal pattern is evident, where turnover efficiency typically peaks in the third quarter of each year, as seen in September 2022 (1.54), September 2023 (1.31), September 2024 (1.43), and September 2025 (1.29). This indicates a more rapid movement of stock during these periods.
- Efficiency Analysis
- Despite the growth in absolute cost of sales, the turnover ratio has not trended upward linearly, implying that inventory accumulation has largely kept pace with the increase in sales volume. The ratio experienced a period of relative stability between 1.30 and 1.43 from March 2024 to December 2024, before retreating to a range of 1.16 to 1.21 in the final year of the data set, suggesting a slight decrease in inventory efficiency toward 2026.
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Receivables Turnover
Philip Morris International Inc., receivables turnover 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 revenues | 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 | 5,179) | 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 | 8.21 | 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. | 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. | 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. | 7.18 | 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: 2026-06-30), 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
Receivables turnover
= (Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025)
÷ Trade receivables, less allowances
= (11,192 + 10,146 + 10,362 + 10,845)
÷ 5,179 = 8.21
2 Click competitor name to see calculations.
The analysis of operating activity indicates a general expansion in business scale accompanied by cyclical fluctuations in receivables efficiency. Net revenues demonstrate a consistent long-term growth trajectory, increasing from 7,746 million USD in March 2022 to 11,192 million USD by June 2026.
- Net Revenue Trends
- A steady upward trend in revenue is evident throughout the period. While periodic quarterly contractions occurred, such as in December 2023 and December 2024, the overall momentum remained positive, with revenue expanding by approximately 44% over the observed timeframe.
- Trade Receivables Dynamics
- Trade receivables grew from 3,650 million USD to 5,179 million USD. This increase generally correlates with the expansion of net revenues; however, the growth in receivables exhibited higher volatility, with significant peaks appearing in March 2025 and June 2026.
- Receivables Turnover Performance
- The turnover ratio oscillates primarily between 7.8 and 8.8, indicating a relatively stable collection cycle. A distinct seasonal pattern is observed, where efficiency peaks occur during the December quarters, specifically reaching 10.16 in December 2023 and 10.00 in December 2024. This suggests intensified collection efforts or a reduction in outstanding balances at the end of the calendar year.
- Efficiency Volatility and Recovery
- A period of decreased efficiency is noted during the first half of 2025, where the turnover ratio reached its lowest points of 7.87 in March and 7.82 in June. This coincided with a sharp increase in trade receivables to nearly 5 billion USD. A subsequent recovery is observed in the latter half of 2025, with the ratio improving to 8.89 by December 2025 before stabilizing around 8.2 in the first half of 2026.
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Payables Turnover
Philip Morris International Inc., payables turnover 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) | ||||||||||||||||||||||||
| Cost of sales | 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 | 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 | 3.53 | 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. | 2.90 | 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: 2026-06-30), 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
Payables turnover
= (Cost of salesQ2 2026
+ Cost of salesQ1 2026
+ Cost of salesQ4 2025
+ Cost of salesQ3 2025)
÷ Accounts payable
= (3,533 + 3,241 + 3,560 + 3,487)
÷ 3,919 = 3.53
2 Click competitor name to see calculations.
The payables turnover ratio exhibits a cyclical pattern of fluctuation between March 2022 and June 2026, characterized by periods of increased efficiency in supplier payments followed by strategic expansions in liabilities. The ratio generally fluctuates within a range of 2.80 to 3.81, indicating a relatively consistent approach to managing short-term obligations despite growth in overall operational scale.
- Payables Turnover Trends and Volatility
- A period of relative stability is observed in the first three quarters of 2022, followed by a notable decline to a low of 2.80 in December 2022. This suggests a strategic extension of payment terms or a significant increase in outstanding payables relative to the cost of sales during the year-end period. Subsequently, the ratio trended upward throughout 2023 and 2024, reaching a peak of 3.81 in September 2024. This upward trajectory indicates an acceleration in the payment cycle, meaning suppliers were paid more frequently during this window.
- Correlation Between Cost of Sales and Accounts Payable
- The cost of sales demonstrates a steady long-term increase, rising from 2,608 million in March 2022 to 3,533 million by June 2026. This growth in operational expenditure is mirrored by a general increase in accounts payable, which grew from 3,203 million to 3,919 million over the same period. The simultaneous growth of both metrics has prevented the payables turnover ratio from trending linearly, resulting instead in the observed volatility as the company balanced its procurement costs with its liability management.
- Analysis of Late-Period Fluctuations
- Between September 2024 and December 2025, a downward trend is observed, with the ratio dropping from 3.37 to 3.03. This coincides with a peak in accounts payable of 4,407 million in December 2025, suggesting a tactical decision to maximize working capital by delaying payments to suppliers. However, the ratio recovered to 3.53 by June 2026, signaling a return to a faster turnover rate and a reduction in outstanding payables to 3,919 million.
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Working Capital Turnover
Philip Morris International Inc., working capital turnover 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) | ||||||||||||||||||||||||
| Current assets | 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 | 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 | (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 | 11,192) | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||
| Coca-Cola Co. | 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: 2026-06-30), 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
Working capital turnover
= (Net revenuesQ2 2026
+ Net revenuesQ1 2026
+ Net revenuesQ4 2025
+ Net revenuesQ3 2025)
÷ Working capital
= (11,192 + 10,146 + 10,362 + 10,845)
÷ -536 = —
2 Click competitor name to see calculations.
The financial data reveals a consistent operational strategy characterized by negative working capital coupled with a steady expansion in net revenues over the analyzed period.
- Working Capital Dynamics
- A persistent negative working capital position is observed across all quarters, indicating that current liabilities consistently exceed current assets. Significant volatility is evident, with the deficit peaking periodically, most notably in December 2022, December 2023, and March 2025. However, a marked trend toward a smaller deficit is observed in the first half of 2026, where the negative balance narrowed significantly to -536 million US$ by June 30, 2026.
- Revenue Growth Patterns
- Net revenues demonstrate a sustained upward trajectory, growing from 7,746 million US$ in March 2022 to 11,192 million US$ by June 2026. This growth indicates a steady increase in top-line performance, maintaining a general positive slope despite minor quarterly fluctuations.
- Working Capital Turnover Interpretation
- The company operates with a negative working capital turnover, a condition that typically suggests the use of supplier credit and current liabilities to finance operational growth. The combination of rising revenues and a narrowing working capital deficit in the final quarters of the period suggests an increase in the efficiency of short-term asset utilization or a strategic realignment of current liabilities.
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Average Inventory Processing Period
Philip Morris International Inc., average inventory processing period 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 | ||||||||||||||||||||||||
| Inventory turnover | 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 | 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. | 89 | 92 | 88 | 96 | 102 | 102 | 94 | 94 | 95 | 98 | 87 | 84 | 93 | 95 | 86 | 77 | 78 | 86 | ||||||
| Mondelēz International Inc. | 59 | 53 | 58 | 72 | 72 | 63 | 63 | 70 | 68 | 62 | 59 | 63 | 65 | 63 | 61 | 64 | 60 | 58 | ||||||
| PepsiCo Inc. | 55 | 52 | 50 | 52 | 57 | 50 | 46 | 49 | 51 | 48 | 46 | 48 | 52 | 51 | 47 | 47 | 50 | 46 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.21 = 302
2 Click competitor name to see calculations.
The analysis of operating activity ratios indicates a cyclical pattern in inventory management, characterized by recurring fluctuations in both turnover rates and processing durations over the observed period.
- Inventory Turnover Trends
- Inventory turnover exhibits consistent seasonal variance, typically peaking in the third quarter of each fiscal year. Maximum values were recorded in September 2022 (1.54), September 2023 (1.31), and September 2024 (1.43). Conversely, troughs are generally observed in the first and fourth quarters, with a notable low of 1.10 in March 2023. This pattern suggests a systematic acceleration of inventory movement during the latter half of each calendar year.
- Average Inventory Processing Period
- The average inventory processing period demonstrates a strict inverse correlation with turnover ratios, with values ranging from a minimum of 237 days in September 2022 to a maximum of 330 days in March 2023. A period of improved operational efficiency is evident throughout 2024, during which the processing period remained consistently lower than in previous years, reaching a low of 255 days in September 2024. However, a trend of increasing holding periods emerged during 2025, culminating in a peak of 313 days by December 2025, followed by a stabilization period between 302 and 306 days in the first half of 2026.
The observed data reveals recurring volatility in short-term asset liquidity. While the fiscal year 2024 represented a phase of optimal inventory leaness, the subsequent increase in the processing period throughout 2025 and into 2026 suggests an expansion of inventory holdings or a deceleration in the rate of inventory liquidation.
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Average Receivable Collection Period
Philip Morris International Inc., average receivable collection period 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 | ||||||||||||||||||||||||
| Receivables turnover | 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 | 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. | 27 | 27 | 23 | 30 | 32 | 32 | 28 | 33 | 36 | 34 | 27 | 28 | 33 | 39 | 30 | 34 | 40 | 42 | ||||||
| Mondelēz International Inc. | 37 | 41 | 37 | 41 | 35 | 43 | 39 | 38 | 32 | 40 | 37 | 36 | 31 | 39 | 36 | 34 | 30 | 37 | ||||||
| PepsiCo Inc. | 51 | 47 | 45 | 50 | 49 | 43 | 41 | 48 | 47 | 43 | 43 | 47 | 46 | 43 | 43 | 47 | 47 | 43 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.21 = 44
2 Click competitor name to see calculations.
The analysis of receivables activity reveals a cyclical pattern characterized by consistent year-end acceleration in collection efficiency. While the average receivable collection period remains generally stable over the long term, there are distinct seasonal fluctuations that correlate inversely with the receivables turnover ratio.
- Year-End Collection Efficiency
- A recurring trend of peak efficiency is observed every December. The average receivable collection period reached its lowest points on December 31, 2023, and December 31, 2024, recording 36 and 37 days, respectively. These periods coincide with the highest receivables turnover ratios of 10.16 and 10.00, indicating a systematic acceleration of cash inflows and more aggressive collection activity at the close of the fiscal year.
- Mid-Year Collection Expansion
- Conversely, collection periods typically lengthen during the second quarter of the year. This is most evident in June 2023 (45 days) and June 2025 (47 days), where the receivables turnover ratio declined to 8.07 and 7.82, respectively. This pattern suggests a seasonal expansion in the time required to convert receivables into cash during the mid-year period.
- Period Volatility and Normalization
- Between March 2022 and June 2026, the collection period largely fluctuated within a range of 36 to 47 days. A notable increase in the collection period occurred during the first half of 2025, peaking at 47 days in June. However, the data indicates a subsequent normalization, with the period returning to the 41 to 45-day range throughout the remainder of 2025 and the first half of 2026.
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Operating Cycle
Philip Morris International Inc., operating cycle calculation (quarterly data)
No. days
| 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 | 302 | 306 | 313 | 283 | 299 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | ||||||
| Average receivable collection period | 44 | 45 | 41 | 44 | 47 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | ||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||
| Operating cycle1 | 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. | 116 | 119 | 111 | 126 | 134 | 134 | 122 | 127 | 131 | 132 | 114 | 112 | 126 | 134 | 116 | 111 | 118 | 128 | ||||||
| Mondelēz International Inc. | 96 | 94 | 95 | 113 | 107 | 106 | 102 | 108 | 100 | 102 | 96 | 99 | 96 | 102 | 97 | 98 | 90 | 95 | ||||||
| PepsiCo Inc. | 106 | 99 | 95 | 102 | 106 | 93 | 87 | 97 | 98 | 91 | 89 | 95 | 98 | 94 | 90 | 94 | 97 | 89 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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 cycle = Average inventory processing period + Average receivable collection period
= 302 + 44 = 346
2 Click competitor name to see calculations.
The analysis of the short-term operating activity reveals an operating cycle heavily influenced by inventory management, characterized by significant periodic fluctuations. The total duration of the operating cycle ranges from a minimum of 281 days to a maximum of 371 days, indicating a prolonged period between the acquisition of inventory and the realization of cash from sales.
- Average Inventory Processing Period
- This metric is the primary driver of volatility within the operating cycle. A cyclical pattern is observed, with durations fluctuating between 237 days in September 2022 and 330 days in March 2023. While there were periods of relative compression, such as the decline to 255 days by September 2023, the processing period generally remains high, often exceeding 300 days. The most recent figures through June 2026 show a sustained level between 302 and 313 days, suggesting a consistent strategy of high inventory holdings.
- Average Receivable Collection Period
- In contrast to inventory, the collection of receivables is remarkably stable. The period remains within a tight range of 36 to 47 days throughout the entire observation window. This stability indicates a highly efficient and consistent credit management process, ensuring that the conversion of receivables to cash does not contribute significantly to the overall length or variability of the operating cycle.
- Operating Cycle Integration
- The total operating cycle demonstrates a direct correlation with the inventory processing period. The peak of 371 days occurred in March 2023, coinciding with the peak in inventory processing. Conversely, the lowest point of 281 days was recorded in September 2022, reflecting a temporary increase in inventory turnover efficiency. Recent trends indicate a stabilization of the cycle in the 346 to 354-day range toward mid-2026, reflecting a sustained operating model with long inventory lead times and rapid receivable conversion.
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Average Payables Payment Period
Philip Morris International Inc., average payables payment period 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 | ||||||||||||||||||||||||
| Payables turnover | 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 | 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. | 126 | 127 | 134 | 141 | 145 | 148 | 155 | 150 | 142 | 149 | 136 | 127 | 131 | 136 | 137 | 127 | 133 | 147 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.53 = 103
2 Click competitor name to see calculations.
The analysis of short-term operating activity reveals a fluctuating but generally contracting trend in the time required to settle obligations to suppliers, closely mirrored by changes in the payables turnover ratio.
- Payables Turnover Dynamics
- An overall increase in turnover efficiency is observed from March 2022 through September 2024. While the ratio began at 3.24, it reached a peak of 3.81 in September 2024, indicating a higher frequency of supplier payments. A significant temporary dip occurred in December 2022, where the turnover fell to 2.80, its lowest point in the series, before returning to a growth phase.
- Average Payables Payment Period Trends
- The payment period demonstrates an inverse relationship with the turnover ratio, exhibiting a general downward trend over the long term. The period peaked at 130 days in December 2022, coinciding with the lowest turnover ratio. Subsequently, a steady reduction was observed through September 2024, when the payment period reached a minimum of 96 days. This represents a significant acceleration in the settlement of liabilities.
- Recent Stability and Fluctuations
- From December 2024 through June 2026, the payment period entered a phase of relative stabilization with intermittent fluctuations. After a brief increase to 120 days in December 2025, the period declined again to 103 days by June 2026. This suggests a strategic calibration of working capital management, moving away from the extreme lows of 2024 while remaining below the peak levels observed in 2022.
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Cash Conversion Cycle
Philip Morris International Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | 302 | 306 | 313 | 283 | 299 | 281 | 259 | 255 | 260 | 279 | 305 | 278 | 291 | 330 | 316 | 237 | 259 | 306 | ||||||
| Average receivable collection period | 44 | 45 | 41 | 44 | 47 | 46 | 37 | 42 | 42 | 43 | 36 | 41 | 45 | 41 | 44 | 44 | 44 | 42 | ||||||
| Average payables payment period | 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 | 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. | -30 | -33 | -39 | -28 | -38 | -42 | -53 | -42 | -42 | -47 | -40 | -28 | -35 | -34 | -40 | -29 | -43 | -52 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 302 + 44 – 103 = 243
2 Click competitor name to see calculations.
The cash conversion cycle exhibits significant volatility over the analyzed period, characterized by a consistently long duration that indicates substantial working capital requirements. The fluctuations in the overall cycle are predominantly driven by variations in inventory processing times, while the collection and payment components remain comparatively stable.
- Average Inventory Processing Period
- The inventory processing period is the primary driver of volatility within the operating cycle. The duration fluctuated between a low of 237 days in September 2022 and a peak of 330 days in March 2023. A downward trend was observed from March 2023 through September 2024, reaching 255 days, before trending upward again to 302 days by June 2026. These shifts suggest periodic changes in procurement strategies or inventory stockpiling.
- Average Receivable Collection Period
- Collection efficiency remains highly consistent throughout the entire period. The number of days required to collect receivables fluctuated within a tight range of 36 to 47 days. This stability indicates a disciplined credit management process and a predictable timeline for converting sales into cash.
- Average Payables Payment Period
- The payables payment period shows a general trend toward shorter durations. After peaking at 130 days in December 2022, the period declined to a low of 96 days by September 2023. Despite a temporary spike to 120 days in December 2025, the period settled at 103 days in June 2026, suggesting a slight reduction in the reliance on supplier financing compared to the initial 2022 levels.
- Cash Conversion Cycle Synthesis
- The overall cash conversion cycle ranged from a minimum of 170 days in September 2022 to a maximum of 249 days in March 2023. Because the net effect of receivables and payables is relatively stable, the cycle's movements almost mirror the inventory processing period. The cycle closed at 243 days in June 2026, reflecting a return to a higher capital-intensive state similar to the levels observed at the start of the analysis period.
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