Altria Group (MO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.63 | 8.39 | 5.46 | 5.96 | 3.98 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
1. Inventory Turnover:
- Altria Group's inventory turnover has shown fluctuations over the years, with the ratio increasing from 3.98 in 2020 to 8.39 in 2023, indicating that the company is selling its inventory more efficiently. However, there was a slight decrease to 5.63 in 2024.
2. Receivables Turnover:
- Data for Altria Group's receivables turnover is missing for all years, suggesting that the company's sales on credit and collection efficiency are not available for analysis.
3. Payables Turnover:
- The information on payables turnover is not provided for any year, hindering an assessment of how quickly Altria Group is paying its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio data is unavailable for all years, which prevents an evaluation of how effectively the company is utilizing its working capital to generate sales.
In conclusion, while the inventory turnover ratios indicate improvements in inventory management efficiency for Altria Group, the absence of data for receivables turnover, payables turnover, and working capital turnover hinders a comprehensive analysis of the company's overall activity and liquidity management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.87 | 43.48 | 66.86 | 61.22 | 91.79 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
To analyze Altria Group's activity ratios, we will focus on the Days of Inventory on Hand (DOH) metric. This ratio indicates the average number of days it takes for Altria to sell its inventory.
- In December 2020, Altria had an inventory turnover of 91.79 days, suggesting that it took approximately 3 months to sell its inventory.
- By December 2023, this ratio improved significantly to 43.48 days, indicating that Altria managed to reduce the number of days it held inventory before selling it.
- However, in December 2024, the DOH increased to 64.87 days, signaling that Altria took longer to sell its inventory compared to the previous year, which might indicate potential issues with inventory management.
It's important for Altria to continue monitoring and managing its inventory effectively to ensure optimal operations and profitability.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 15.61 | 16.75 | 13.00 |
| Total asset turnover | 0.58 | 0.63 | 0.68 | 0.66 | 0.55 |
The Fixed Asset Turnover ratio for Altria Group has shown consistent improvement over the years, increasing from 13.00 in 2020 to 16.75 in 2021, before slightly declining to 15.61 in 2022. This ratio indicates that the company generated $15.61 in sales for every dollar invested in fixed assets in 2022.
On the other hand, the Total Asset Turnover ratio has exhibited a fluctuating trend, rising from 0.55 in 2020 to 0.68 in 2022, but then declining to 0.58 in 2024. This ratio suggests that Altria Group generated revenue equivalent to 58% of its total assets in 2024.
Overall, the trends in both ratios suggest that Altria Group efficiently utilizes its assets to generate revenue, with a strong ability to generate sales relative to its asset base, although there may be room for improvement in optimizing the use of fixed assets for revenue generation in the future.