Altria Group (MO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,130,000 | 5,764,000 | 2,475,000 | 4,467,000 | -1,293,000 |
| Total assets | US$ in thousands | 38,570,000 | 36,954,000 | 39,523,000 | 47,414,000 | 49,271,000 |
| ROA | 21.08% | 15.60% | 6.26% | 9.42% | -2.62% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $8,130,000K ÷ $38,570,000K
= 21.08%
Altria Group Inc.'s return on assets (ROA) has exhibited significant fluctuations over the past five years. In 2023, the company's ROA stood at 21.03%, reflecting a substantial increase from the previous year's 15.56%. This surge suggests that Altria has been more efficient in generating profits relative to its assets in 2023.
Comparing to 2021, where the ROA was 6.23%, the marked improvement indicates enhanced asset utilization and profitability in 2023. Furthermore, the ROA for 2020 was 9.40%, implying that the company's asset efficiency was lower in 2023. Altria's ROA was negative in 2019 at -2.64%, indicating that the company was experiencing challenges in generating profits relative to its assets.
Overall, the increasing trend in ROA from 2019 to 2023 demonstrates Altria's efforts to enhance its asset efficiency and profitability. It is crucial for stakeholders to monitor this metric to assess the company's ability to generate returns from its asset base effectively.
Peer comparison
Dec 31, 2023