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Philip Morris International Altman Z-Score

: 4.85 (As of Today)
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Good Sign:

Altman Z-score of 4.86 is strong.

Philip Morris International has a Altman Z-Score of 4.85, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

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

PM' s Altman Z-Score Range Over the Past 10 Years
Min: 1.69   Med: 4.74   Max: 6.27
Current: 4.86

During the past 13 years, Philip Morris International's highest Altman Z-Score was 6.27. The lowest was 1.69. And the median was 4.74.


Philip Morris International Altman Z-Score Historical Data

The historical data trend for Philip Morris International's Altman Z-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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.55 4.09 4.09 3.93 4.66

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
Altman Z-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 4.83 4.64 4.66 4.60 4.80

Competitive Comparison

For the Tobacco subindustry, Philip Morris International's Altman Z-Score, along with its competitors' market caps and Altman Z-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 Altman Z-Score Distribution

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

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



Philip Morris International Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Philip Morris International's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.053+1.4*0.8241+3.3*0.3124+0.6*3.2524+1.0*0.7765
=4.85

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $40,960 Mil.
Total Current Assets was $18,376 Mil.
Total Current Liabilities was $20,547 Mil.
Retained Earnings was $33,755 Mil.
Pre-Tax Income was 2925 + 3140 + 2768 + 3274 = $12,107 Mil.
Interest Expense was -126 + -154 + -255 + -154 = $-689 Mil.
Revenue was 7832 + 7746 + 8104 + 8122 = $31,804 Mil.
Market Cap (Today) was $156,830 Mil.
Total Liabilities was $48,220 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(18376 - 20547)/40960
=-0.053

X2=Retained Earnings/Total Assets
=33755/40960
=0.8241

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(12107 - -689)/40960
=0.3124

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=156830.024/48220
=3.2524

X5=Revenue/Total Assets
=31804/40960
=0.7765

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Philip Morris International has a Altman Z-Score of 4.85 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Philip Morris International  (NYSE:PM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Philip Morris International Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Philip Morris International's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


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

Philip Morris International Headlines

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