The business behind the dividend
| Measure | PM | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 42.4% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $11.78bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $10.66bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 36.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 27.9% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 9.38x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.96x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.08x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Debt to equity, Long-term debt to working capital, Return on equity — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on capital employed | 42.4% | 44.1% | 38.5% | 47.2% | 88.4% | 74.8% | 69.8% | 78.4% | 60.2% | 82.8% | 60.2% |
| Operating margin | 36.6% | 35.4% | 32.9% | 38.6% | 41.3% | 40.7% | 35.3% | 38.4% | 40.3% | 40.9% | 38.4% |
| Net margin | 27.9% | 18.6% | 22.2% | 28.5% | 29.0% | 28.1% | 24.1% | 26.7% | 21.0% | 26.1% | 26.1% |
| Current ratio | 0.96x | 0.88x | 0.75x | 0.72x | 0.92x | 1.10x | 1.09x | 1.13x | 1.35x | 1.07x | 0.96x |
| Cash conversion | 1.08x | 1.73x | 1.18x | 1.19x | 1.31x | 1.22x | 1.40x | 1.20x | 1.48x | 1.16x | 1.20x |
How it compares in consumer staples
Among the 38 consumer staples companies here measured on free cash flow, Philip Morris International pays out less than 8 of them. The median for that group is 65.1%, against this company’s 80.9%.
Closest on free cash flow
- Mondelez International (MDLZ) 76.9%
- Clorox (CLX) 79.1%
- General Mills (GIS) 80.9%
- Keurig Dr Pepper (KDP) 83.1%
Same sector and same denominator, so the figures are comparable. All 43 in consumer staples →