Philip Morris International Inc — Earnings Quality Grade F
PM · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 41 days, change +5 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 7.3%, CFFO 0.1%. Cash follows revenue
Expense Quality
Inventory growth 21.4% far exceeds COGS 0.3%, margin rising. Fraud signal
CapEx growth 8.7% vs revenue 7.3%. Normal
SG&A/Gross Profit = 45.3%. Normal
Gross margin 67.1%, change +2.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.08. Profits backed by cash
FCF $10.7B, FCF/NI = 0.94
Accruals ratio = -1.3%. Low accruals
Cash $4.9B covers only 10% of debt $48.8B
Balance Sheet Health
Goodwill+Intangibles $28.1B = -282% of equity. Manageable
Debt/EBITDA = 2.8x. Healthy
Other assets grew 48.7% vs revenue 7.3%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 1% YoY. Normal
Manipulation Score
M-Score = -2.39 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10