Philip Morris International key statistics and ratios
In fiscal 2025, Philip Morris International had a net margin of 27.9%. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.
Financial ratios
| Fiscal year | 2009Dec 2009 | 2010Dec 2010 | 2011Dec 2011 | 2012Dec 2012 | 2013Dec 2013 | 2014Dec 2014 | 2015Dec 2015 | 2016Dec 2016 | 2017Dec 2017 | 2018Dec 2018 | 2019Dec 2019 | 2020Dec 2020 | 2021Dec 2021 | 2022Dec 2022 | 2023Dec 2023 | 2024Dec 2024 | 2025Dec 2025 | LTMSept 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net margin | 10.2% | 10.7% | 11.3% | 11.4% | 10.7% | 9.4% | 9.3% | 9.3% | 7.7% | 9.9% | 9.2% | 10.6% | 11.1% | 11.2% | 22.2% | 18.6% | 27.9% | 24.8% |
| Return on equity | 111.0% | 157.4% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Return on assets | 18.4% | 20.9% | 24.4% | 24.1% | 22.6% | 20.4% | 19.9% | 19.7% | 15.1% | 19.1% | 17.4% | 18.4% | 21.2% | 17.6% | 12.3% | 11.1% | 17.3% | 15.8% |
| Effective tax rate | 29.1% | 27.4% | 29.1% | 29.5% | 29.3% | 29.1% | 28.0% | 27.9% | 40.7% | 22.9% | 23.2% | 21.7% | 21.8% | 19.3% | 22.4% | 24.7% | 19.7% | 21.0% |
| R&D as % of revenue | 0.5% | 0.6% | 0.5% | 0.5% | 0.6% | 0.5% | 0.6% | 0.6% | 0.6% | 0.5% | 0.6% | 0.7% | 0.8% | 0.8% | 2.0% | 2.0% | 1.9% | — |
| Dividends ÷ net income | 68.2% | 60.9% | 55.7% | 61.4% | 66.7% | 80.5% | 90.9% | 91.5% | 108.0% | 87.0% | 99.7% | 91.4% | 83.2% | 86.3% | 101.9% | 116.2% | 76.0% | 85.9% |
Financial health
- Short-term assets cover short-term liabilities $25.8bn of assets due within a year against $25.2bn of liabilities due within a year.
- Short-term assets cover long-term liabilities $25.8bn short-term assets against $47.5bn of longer-dated liabilities.
- More cash than debt $6.7bn of cash against $44.2bn of debt.
- Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
- Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
- A year's operating cash flow covers at least 20% of debt $15.2bn of operating cash flow against $44.2bn of debt.
- Operating profit covers interest at least five times over Interest not separately reported. Not assessable.
Moat
Moderate moat
How hard Philip Morris International's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.
- Returns on capital 20 / 20
Net income has been a median 16.9% of total assets over 10 years.
- Pricing power 3 / 20
Gross margin has been a median 30.2%, moving by 17.8 percentage points (standard deviation) across 10 years.
- Durability 15 / 20
Operating margin has been a median 18.2%; its worst year was 14.5%.
- Cash conversion 17 / 20
Free cash flow was positive in 10 of 10 years, at a median 13.9% of revenue.
- Discipline 12 / 20
The diluted share count rose 0.0% over five years.
AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.
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