PM Debt-to-Equity Ratio Analysis

Philip Morris International's debt-to-equity ratio of -5.60x means the company has more total liabilities than shareholders' equity, resulting in a negative equity position—a metric that measures how much debt a company uses relative to its own capital.

Compared to sector peers, the ratio sits far below the Consumer Defensive median of 0.68x, placing it in the 8th percentile, indicating a much higher reliance on debt (or negative equity) than most competitors. Trend information is not available: the year-over-year change is listed as N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current figure are provided. The combination of a deeply negative level with no trend data suggests elevated financial risk, as negative equity can signal potential solvency concerns or past losses that have eroded the equity base. This metric contradicts the overall NEUTRAL verdict because a negative debt-to-equity ratio is an uncommon warning sign that typically points to higher borrowing risk, making a neutral stance less warranted without offsetting strengths.

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