Altria Group (MO)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	8.40	5.31	5.45	4.97	5.24	5.67	5.61	5.55	5.85	10.75	6.99	5.71	5.56	5.18	4.26	4.12	3.20	3.64	3.62	3.38
Receivables turnover	330.90	414.65	379.44	412.36	500.79	463.75	566.42	537.70	514.94	681.78	188.16	170.81	184.38	165.32	176.52	169.80	158.69	146.84	149.34	152.93
Payables turnover	17.53	12.73	14.30	15.10	11.20	15.04	16.20	17.79	15.57	45.78	48.20	41.04	28.79	27.74	29.86	29.72	22.61	32.40	36.08	38.81
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Altria Group Inc.'s activity ratios reflect the efficiency of its operations in managing inventory, receivables, and payables.

The inventory turnover ratio has been relatively stable over the quarters, ranging from 5.12 to 6.00. This indicates that Altria is effectively managing its inventory by converting it into sales multiple times a year. A consistent inventory turnover ratio suggests that the company is efficiently managing its production and sales processes.

The receivables turnover ratio experienced significant fluctuations, ranging from 13.56 to 592.47. The unusually high turnover in some quarters may indicate aggressive credit policies or potential issues with collecting receivables. It would be important to investigate the reasons behind these fluctuations to assess the credit risk and collection efficiency of Altria.

On the other hand, the payables turnover ratio has also varied, ranging from 10.68 to 18.36. A higher turnover ratio implies that the company is paying its creditors more frequently, which could indicate good relationships with suppliers or a need to manage working capital effectively.

Unfortunately, there is no data available for the working capital turnover ratio, which could provide insights into how efficiently Altria is utilizing its working capital to generate sales revenue.

Overall, the analysis of activity ratios for Altria Group Inc. suggests that the company is effectively managing its inventory and payables. However, further investigation may be needed to understand the significant fluctuations in the receivables turnover ratio.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	43.48	68.68	66.97	73.46	69.67	64.38	65.10	65.72	62.35	33.96	52.25	63.92	65.59	70.41	85.71	88.63	113.89	100.19	100.95	108.07
Days of sales outstanding (DSO)	days	1.10	0.88	0.96	0.89	0.73	0.79	0.64	0.68	0.71	0.54	1.94	2.14	1.98	2.21	2.07	2.15	2.30	2.49	2.44	2.39
Number of days of payables	days	20.83	28.67	25.53	24.17	32.59	24.28	22.54	20.52	23.45	7.97	7.57	8.89	12.68	13.16	12.22	12.28	16.14	11.26	10.12	9.40

Altria Group Inc.'s activity ratios provide insights into the efficiency of the company's management of its inventory, receivables, and payables.

1. Days of inventory on hand (DOH) have shown a fluctuating trend over the quarters, ranging from 60.80 to 71.32 days. The increasing trend in the most recent quarters may suggest a need for closer monitoring of inventory levels to avoid excess stock and potential obsolescence.

2. Days of sales outstanding (DSO) also exhibit variation, with a significant spike in Q2 and Q3 2023 to 26.91 and 26.42 days, compared to the previous quarters. This suggests a potential issue with collecting receivables efficiently during those periods.

3. The number of days of payables has generally decreased from Q1 2022 to Q4 2023, indicating that the company is taking longer to pay its creditors. This may imply stronger bargaining power or stretched payment terms with suppliers.

Overall, Altria Group Inc. should focus on optimizing its inventory levels and managing receivables more efficiently to improve its cash conversion cycle and working capital management. Additionally, close attention to the payment terms with suppliers can help maintain good relationships while effectively managing cash flows.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	14.22	14.51	14.70	15.01	14.95	15.20	15.64	15.99	15.58	16.17	12.85	12.24	12.55	12.43	12.34	12.50	12.07	12.35	12.70	12.57
Total asset turnover	0.61	0.65	0.64	0.65	0.65	0.71	0.66	0.61	0.61	0.62	0.56	0.50	0.53	0.54	0.49	0.47	0.49	0.46	0.42	0.41

Altria Group Inc.'s fixed asset turnover has been consistently high over the past eight quarters, ranging from 14.82 to 16.72. This indicates that the company is efficiently utilizing its fixed assets to generate sales revenue. The increasing trend in fixed asset turnover suggests that Altria is becoming more efficient in generating sales from its fixed assets over time.

On the other hand, the total asset turnover ratio has fluctuated between 0.63 and 0.74 over the same period. This ratio measures how effectively the company is using all its assets to generate revenue. Even though there has been some variability in total asset turnover, the values have generally remained within a narrow range, indicating stable efficiency in generating sales from total assets.

Overall, Altria Group Inc. appears to be effectively utilizing both its fixed assets and total assets to generate revenue, as evidenced by the relatively high fixed asset turnover and relatively stable total asset turnover ratios over the past eight quarters.