Altria Group (MO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,494,000 | 24,038,000 | 24,202,000 | 24,944,000 | 23,830,000 |
| Property, plant and equipment | US$ in thousands | 1,652,000 | 1,608,000 | 1,553,000 | 2,012,000 | 1,999,000 |
| Fixed asset turnover | 14.22 | 14.95 | 15.58 | 12.40 | 11.92 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,494,000K ÷ $1,652,000K
= 14.22
Altria Group Inc.'s fixed asset turnover ratio has shown a fluctuating trend over the past five years. In 2023, the fixed asset turnover ratio decreased to 14.82 from 15.61 in 2022, indicating a decline in the company's efficiency in generating sales from its fixed assets. Despite the decrease, the ratio remains relatively high, suggesting that Altria Group Inc. efficiently utilizes its fixed assets to generate revenue.
Comparing the current ratio to previous years, it is lower than the peak in 2021 when it reached 16.75 but higher than the ratios in 2020 and 2019. This indicates that in 2023, Altria Group Inc. experienced a slight decrease in the utilization of its fixed assets to generate sales compared to the previous year but remains at favorable levels.
Overall, Altria Group Inc.'s fixed asset turnover ratio has demonstrated some variability, but it generally indicates that the company effectively manages and utilizes its fixed assets to generate revenue. Further analysis and consideration of industry benchmarks may provide a more comprehensive understanding of the company's performance.
Peer comparison
Dec 31, 2023