What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Philip Morris International (PM) spend its free cash flow?

For TTM through Q1 2026, Philip Morris International generated $12.2B of operating cash flow and $10.7B of free cash flow — a free cash flow margin of 87.5% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Philip Morris International (PM) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Philip Morris International's shareholder returns for TTM through Q1 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Philip Morris International (PM) Cash Flow Waterfall

Operating CF

$12.2B

Capex

-$1.52B

Free Cash Flow

$10.7B

FCF Margin

+87.5%

Cash flow waterfall for Philip Morris International (PM) — TTM through Q1 2026

Free cash flow: $10.7B

Cash flow breakdown for Philip Morris International (PM) — TTM through Q1 2026

Line item	Amount	Running total
Operating Cash Flow	$12.2B	$12.2B
Capital Expenditure	-$1.52B	$10.7B
Free Cash Flow	$10.7B	$10.7B
Other Investing	-$2.02B	$8.65B
Dividends Paid	-$8.82B	-$167M
Net Debt Change	$1.61B	$1.44B
Other Financing & FX	-$447M	$994M
Net Cash Increase	$994M	$994M

Operating Cash Flow$12.2B
Capital Expenditure-$1.52B
Free Cash Flow$10.7B
Other Investing-$2.02B
Dividends Paid-$8.82B
Net Debt Change$1.61B
Other Financing & FX-$447M
Net Cash Increase$994M

Want to see what drove the FCF change?Free Cash Flow Bridge

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