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What is the composition of Phillip Morris' (Altria) debt?

a. What is the composition of Phillip Morris' total long-term liability in current year?
b. What is the Phillip Morris' Debt to Equity Ratio for current year and prior year? What does it express? Please show details for the numerator and denominator to receive full credit.
c. What is the Phillip Morris' Times Interest Earned Ratio for current year and prior year? What does it express? Please show details for the numerator and denominator.
d. What type of leases, operating or capital, does the company report?

Solution Preview

Here is the link to the 2009 annual report:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzkzNTN8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

Phillip Morris (name changed, now Altria)

a. What is the composition of Phillip Morris total long-term liability in current year?

On page 21 of the 2009 annual report, you can see that they report their debt in two sections, consumer products ($28,291) and financial services ($4,282). The consumer products has ...

Solution Summary

A link to the annual report is given in addition to discussion of the questions posted.

$2.19