Altria Group (MO)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 11,547,000 | 11,919,000 | 11,560,000 | 10,873,000 | 10,326,000 |
| Total assets | US$ in thousands | 38,570,000 | 36,954,000 | 39,523,000 | 47,414,000 | 49,271,000 |
| Operating ROA | 29.94% | 32.25% | 29.25% | 22.93% | 20.96% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $11,547,000K ÷ $38,570,000K
= 29.94%
The operating return on assets (operating ROA) for Altria Group Inc. has shown fluctuating performance over the past five years. In 2023, the operating ROA increased significantly to 29.94%, suggesting that the company generated $0.2994 in operating income for every dollar of assets employed in its operations. This improvement indicates an efficient utilization of assets to generate operating profits.
Comparing this to the previous years, there was a notable increase from 2022 when the operating ROA was 22.40%, indicating enhanced profitability efficiency in 2023. However, in 2021, the operating ROA was lower at 14.12%, signaling a decrease in the ability of the company to generate operating income from its assets.
The highest operating ROA in the past five years was in 2020 at 22.69%, which was slightly higher than the 2023 figure. This demonstrates a period of strong asset utilization and operating profitability for the company. In 2019, the operating ROA was 21.28%, showing consistent performance in utilizing assets to generate operating income.
Overall, based on the trends observed, the operating ROA of Altria Group Inc. has been volatile but has seen improvement in 2023, indicating better operating efficiency and profitability compared to the previous years.
Peer comparison
Dec 31, 2023