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Philip Morris International Beneish M-Score

: -2.82 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Philip Morris International's Beneish M-Score or its related term are showing as below:

PM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.66   Max: -2.26
Current: -2.82

During the past 13 years, the highest Beneish M-Score of Philip Morris International was -2.26. The lowest was -2.96. And the median was -2.66.


Philip Morris International Beneish M-Score Historical Data

The historical data trend for Philip Morris International's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Philip Morris International Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.74 -2.73 -2.74 -2.64 -2.73

Philip Morris International Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.59 -2.57 -2.73 -2.81 -2.82

Competitive Comparison

For the Tobacco subindustry, Philip Morris International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Philip Morris International Beneish M-Score Distribution

For the Tobacco Products industry and Consumer Defensive sector, Philip Morris International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Philip Morris International's Beneish M-Score falls into.



Philip Morris International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Philip Morris International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9769+0.528 * 1.0231+0.404 * 1.0338+0.892 * 1.0577+0.115 * 0.9507
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0134+4.679 * -0.0845-0.327 * 0.984
=-2.82

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $4,593 Mil.
Revenue was 7832 + 7746 + 8104 + 8122 = $31,804 Mil.
Gross Profit was 5184 + 5138 + 5297 + 5526 = $21,145 Mil.
Total Current Assets was $18,376 Mil.
Total Assets was $40,960 Mil.
Property, Plant and Equipment(Net PPE) was $5,965 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,054 Mil.
Selling, General, & Admin. Expense(SGA) was $8,325 Mil.
Total Current Liabilities was $20,547 Mil.
Long-Term Debt & Capital Lease Obligation was $22,345 Mil.
Net Income was 2233 + 2331 + 2093 + 2426 = $9,083 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 3524 + 1118 + 4032 + 3870 = $12,544 Mil.
Total Receivables was $4,445 Mil.
Revenue was 7594 + 7585 + 7444 + 7446 = $30,069 Mil.
Gross Profit was 5241 + 5311 + 4872 + 5030 = $20,454 Mil.
Total Current Assets was $18,743 Mil.
Total Assets was $40,686 Mil.
Property, Plant and Equipment(Net PPE) was $5,975 Mil.
Depreciation, Depletion and Amortization(DDA) was $995 Mil.
Selling, General, & Admin. Expense(SGA) was $7,767 Mil.
Total Current Liabilities was $15,884 Mil.
Long-Term Debt & Capital Lease Obligation was $27,414 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(4593 / 31804) / (4445 / 30069)
=0.1444158 / 0.14782667
=0.9769

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(20454 / 30069) / (21145 / 31804)
=0.68023546 / 0.66485348
=1.0231

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (18376 + 5965) / 40960) / (1 - (18743 + 5975) / 40686)
=0.4057373 / 0.39246915
=1.0338

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=31804 / 30069
=1.0577

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(995 / (995 + 5975)) / (1054 / (1054 + 5965))
=0.14275466 / 0.15016384
=0.9507

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(8325 / 31804) / (7767 / 30069)
=0.26175953 / 0.2583059
=1.0134

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((22345 + 20547) / 40960) / ((27414 + 15884) / 40686)
=1.04716797 / 1.06419899
=0.984

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(9083 - 0 - 12544) / 40960
=-0.0845

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Philip Morris International has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.


Philip Morris International Beneish M-Score Related Terms

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Philip Morris International Business Description

Philip Morris International logo
Address
120 Park Avenue, New York, NY, USA, 10017
Philip Morris International is a leading international tobacco company engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside the United States. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, the company aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. Management's vision is that these products ultimately replace cigarettes.
Executives
Temperley Dessislava director CIMPRESS PLC BUILDING D, XEROX TECHNOLOGY PARK DUNDALK, COUNTY LOUTH L2 A91 H9N9
Dobrowolski Reginaldo officer: Vice President and Controller 120 PARK AVENUE NEW YORK NY 10017
Daboub Juan J. director 5100 W. 115TH PLACE LEAWOOD KS 66211
Yanai Shlomo director ONE MEADOWLANDS PLAZA EAST RUTHERFORD NJ 07073
Bough Bonin director 120 PARK AVENUE NEW YORK NY 10017
Insuasty Jorge officer: Chief Life Sciences Officer 120 PARK AVENUE NEW YORI NY 10017
Combes Michel director 101 WEST 24TH STREET NEW YORK NY 10011
Noto Lucio A director C/O PHILIP MORRIS INTERNATIONAL INC. 120 PARK AVENUE NEW YORK NY 10017
Makihara Jun director C/O MONEX GROUP, INC. 1-11-1, MARUNOUCHI, CHIYODA-KU TOKYO M0 100-6219
Verdeaux Gregoire officer: Sr. VP External Affairs 120 PARK AVENUE NEW YORK NY 10017
Folsom Suzanne R officer: Sr VP & General Counsel C/O PHILIP MORRIS INTERNATIONAL INC. 120 PARK AVENUE NEW YORK NY 10017
Babeau Emmanuel officer: Chief Financial Officer 120 PARK AVENUE NEW YORK NY 10017
Muenster Silke officer: Chief Diversity Officer 120 PARK AVENUE NEW YORK NY 10017
Li Bin officer: Chief Product Officer 120 PARK AVENUE NEW YORK NY 10017
Volpetti Stefano officer: Chief Consumer Officer 120 PARK AVENUE NEW YORK NY 10017

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