Altria Group (MO)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 70.27% | 58.34% | 56.77% | 53.79% | 49.80% |
| Operating profit margin | 54.98% | 50.31% | 47.49% | 44.44% | 41.57% |
| Pretax margin | 66.81% | 44.64% | 29.44% | 14.70% | 26.34% |
| Net profit margin | 55.10% | 33.21% | 22.97% | 9.51% | 17.08% |
Altria Group's profitability ratios have shown a strong upward trend over the years, indicating improved operational efficiency and financial performance.
The Gross Profit Margin has increased consistently from 49.80% in December 2020 to 70.27% in December 2024. This indicates that Altria Group has been able to control its production costs effectively and generate more profit from its sales.
Similarly, the Operating Profit Margin also saw a steady rise from 41.57% in December 2020 to 54.98% in December 2024. This suggests that the company has been able to manage its operating expenses efficiently while increasing its revenue.
The Pretax Margin experienced a significant jump from 26.34% in December 2020 to 66.81% in December 2024. This sharp increase indicates that Altria Group has been successful in improving its profitability before accounting for taxes, implying better financial management and performance.
Finally, the Net Profit Margin has shown substantial growth from 17.08% in December 2020 to 55.10% in December 2024. This demonstrates that Altria Group has been able to increase its bottom-line profitability, indicating enhanced overall financial health and effectiveness in converting revenue into net income.
Overall, Altria Group's profitability ratios reflect a positive trajectory, suggesting sound financial management and operational efficiency, leading to improved profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 31.96% | 31.94% | 32.25% | 29.25% | 22.93% |
| Return on assets (ROA) | 32.02% | 21.08% | 15.60% | 6.26% | 9.42% |
| Return on total capital | — | — | — | — | 286.23% |
| Return on equity (ROE) | — | — | — | — | 157.34% |
Based on the provided data, we can observe the following trends in Altria Group's profitability ratios:
1. Operating Return on Assets (Operating ROA): The Operating ROA has shown a consistent increase over the years, starting at 22.93% in 2020 and reaching 31.96% by the end of 2024. This indicates that Altria Group has been effectively generating operating income in relation to its total assets.
2. Return on Assets (ROA): The ROA initially decreased from 9.42% in 2020 to 6.26% in 2021 but then saw a significant improvement, reaching 32.02% by the end of 2024. This suggests that the company has been successful in increasing its profitability relative to its total assets.
3. Return on Total Capital: The data shows that information regarding Return on Total Capital is missing for the years 2021 to 2024. This could be due to various factors such as changes in reporting practices or specific industry circumstances. Without this data, it is difficult to assess Altria Group's return on total capital efficiency during these years.
4. Return on Equity (ROE): Similar to Return on Total Capital, the data for Return on Equity is missing for the years 2021 to 2024. ROE provides insights on how effectively the company is utilizing shareholder equity to generate profits. The absence of this data limits our ability to evaluate Altria Group's return to its shareholders over these years.
In conclusion, the data highlights Altria Group's strong performance in terms of Operating ROA and ROA, showcasing improvements in generating operating income and overall profitability relative to its assets. However, the absence of information on Return on Total Capital and Return on Equity for the later years restricts a comprehensive analysis of the company's efficiency in capital allocation and returns to its shareholders during those periods.