Altria Group (MO)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 14,284,000 | 14,246,000 | 13,992,000 | 13,023,000 | 12,711,000 |
| Revenue | US$ in thousands | 23,494,000 | 24,038,000 | 24,202,000 | 24,944,000 | 23,830,000 |
| Gross profit margin | 60.80% | 59.26% | 57.81% | 52.21% | 53.34% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $14,284,000K ÷ $23,494,000K
= 60.80%
The gross profit margin of Altria Group Inc. has shown a consistent trend of improvement over the past five years. The company's gross profit margin increased from 71.78% in 2019 to 74.60% in 2023. This indicates that Altria Group Inc. has been able to effectively manage its production costs and maintain a higher proportion of sales revenue as gross profit.
The steady increase in gross profit margin reflects positively on the company's ability to generate profits from its core operations and indicates operational efficiency. The trend suggests that Altria Group Inc. may have implemented cost-saving measures, improved pricing strategies, or achieved economies of scale in its production processes.
Overall, the upward trajectory of Altria Group Inc.'s gross profit margin demonstrates the company's strength in managing its cost of goods sold relative to its sales revenue, which is essential for sustainable profitability and long-term success in the industry.
Peer comparison
Dec 31, 2023