Altria Group (MO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 60.80% | 59.26% | 57.81% | 52.21% | 53.34% |
| Operating profit margin | 49.15% | 49.58% | 47.76% | 43.59% | 43.33% |
| Pretax margin | 46.51% | 30.74% | 15.80% | 27.67% | 3.24% |
| Net profit margin | 34.60% | 23.98% | 10.23% | 17.91% | -5.43% |
Over the past five years, Altria Group Inc. has demonstrated a consistent and strong gross profit margin, ranging from 70.11% to 74.60%. This indicates that the company is effectively managing its production costs and generating significant profits from its core operations.
The operating profit margin has shown more variability, with significant increases in 2021 and 2023 compared to the preceding years. This suggests that the company has been able to control its operating expenses and improve operational efficiency over time.
Similarly, the pretax margin has also exhibited fluctuations, with a notable increase in 2023 compared to previous years. This indicates that Altria Group has been successful in managing its taxes and other costs before accounting for interest and taxes.
The net profit margin, which reflects the company's overall profitability, has shown a positive trend over the years, with substantial improvements from 2019 to 2023. This suggests that Altria Group has been able to effectively control costs, taxes, and interest expenses to generate solid net profits.
Overall, Altria Group Inc. has shown a strong performance in terms of profitability ratios, indicating efficient cost management and improved operational efficiency over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.94% | 32.25% | 29.25% | 22.93% | 20.96% |
| Return on assets (ROA) | 21.08% | 15.60% | 6.26% | 9.42% | -2.62% |
| Return on total capital | 55.98% | 40.27% | 19.78% | 26.37% | 6.29% |
| Return on equity (ROE) | — | — | — | 157.34% | -20.78% |
Altria Group Inc.'s profitability ratios exhibit a positive trend over the years, reflecting an improvement in the company's operational and financial performance. The Operating return on assets (Operating ROA) increased from 14.12% in 2021 to 29.94% in 2023, indicating that the company generated a higher operating profit relative to its total assets. This suggests efficient utilization of assets to generate operating profits.
Similarly, the Return on assets (ROA) improved from 6.23% in 2021 to 21.03% in 2023, signaling enhanced overall profitability as a percentage of total assets. This implies that the company has been more effective in generating earnings from its assets.
Moreover, the Return on total capital rose from 21.11% in 2021 to 51.95% in 2023, demonstrating a significant increase in the returns generated on both equity and debt capital employed in the business. This indicates that the company has been successful in maximizing returns for its capital providers.
Furthermore, while the Return on equity (ROE) data is incomplete, the available data shows a notable improvement from -20.89% in 2019 to potentially higher levels in subsequent years. A positive ROE indicates that the company is effectively utilizing shareholders' equity to generate profits.
Overall, the increasing trend in these profitability ratios suggests that Altria Group Inc. has been successful in enhancing its profitability, operational efficiency, and overall financial strength over the years, which is a positive indicator for investors and stakeholders.