Philip Morris Bonds
PM Stock | USD 91.62 0.61 0.66% |
Philip Morris Intern holds a debt-to-equity ratio of -3.43. As of the 28th of March 2024, Net Debt is likely to grow to about 47.1 B, while Short and Long Term Debt Total is likely to drop about 26.7 B. Philip Morris' financial risk is the risk to Philip Morris stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
As of the 28th of March 2024, Net Debt is likely to grow to about 47.1 B, while Short and Long Term Debt Total is likely to drop about 26.7 B. Philip |
Philip Morris Bond Ratings
Philip Morris International bond ratings play a critical role in determining how much Philip Morris have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Philip Morris' borrowing costs.Piotroski F Score | 7 Strong |
Beneish M Score | -2.8 Unlikely Manipulator |
Philip Morris Intern Debt to Cash Allocation
As Philip Morris International follows its natural business cycle, the capital allocation decisions will not magically go away. Philip Morris' decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company reports 47.91 B of total liabilities. Philip Morris Intern has a current ratio of 0.9, implying that it has not enough working capital to pay out debt commitments in time. Debt can assist Philip Morris until it has trouble settling it off, either with new capital or with free cash flow. So, Philip Morris' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Philip Morris Intern sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Philip to invest in growth at high rates of return. When we think about Philip Morris' use of debt, we should always consider it together with cash and equity.Philip Morris Total Assets Over Time
Philip Morris Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Philip Morris' operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Philip Morris, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a a Philip Morris debt ratio should be compared their industry average or other competing firms.Philip Morris Corporate Bonds Issued
Philip Morris issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. Philip Morris Intern uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Philip bonds can be classified according to their maturity, which is the date when Philip Morris International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Philip Net Debt
Net Debt |
|
Understaning Philip Morris Use of Financial Leverage
Philip Morris financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Philip Morris's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Philip Morris assets, the company is considered highly leveraged. Understanding the composition and structure of overall Philip Morris debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Philip Morris' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Philip Morris' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
Last Reported | Projected for 2024 | ||
Net Debt | 44.8 B | 47.1 B | |
Short and Long Term Debt Total | 47.9 B | 26.7 B | |
Short Term Debt | 6.7 B | 3.6 B | |
Long Term Debt | 41.2 B | 24.1 B | |
Long Term Debt Total | 40.1 B | 26.3 B | |
Short and Long Term Debt | 6.7 B | 4.4 B | |
Long Term Debt To Capitalization | 1.37 | 0.94 | |
Total Debt To Capitalization | 1.31 | 0.87 | |
Debt Equity Ratio | (4.27) | (4.05) | |
Debt Ratio | 0.73 | 0.46 | |
Cash Flow To Debt Ratio | 0.19 | 0.18 |
Becoming a Better Investor with Macroaxis
Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Philip Morris Intern using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.Build Optimal Portfolios
Align your risk with return expectations
Check out the analysis of Philip Morris Fundamentals Over Time. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Complementary Tools for Philip Stock analysis
When running Philip Morris' price analysis, check to measure Philip Morris' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Philip Morris is operating at the current time. Most of Philip Morris' value examination focuses on studying past and present price action to predict the probability of Philip Morris' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Philip Morris' price. Additionally, you may evaluate how the addition of Philip Morris to your portfolios can decrease your overall portfolio volatility.
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |
Is Philip Morris' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Philip Morris. If investors know Philip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Philip Morris listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.09) | Dividend Share 5.14 | Earnings Share 5.02 | Revenue Per Share 22.664 | Quarterly Revenue Growth 0.11 |
The market value of Philip Morris Intern is measured differently than its book value, which is the value of Philip that is recorded on the company's balance sheet. Investors also form their own opinion of Philip Morris' value that differs from its market value or its book value, called intrinsic value, which is Philip Morris' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Philip Morris' market value can be influenced by many factors that don't directly affect Philip Morris' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Philip Morris' value and its price as these two are different measures arrived at by different means. Investors typically determine if Philip Morris is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Philip Morris' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.