Altria Group (MO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 11,264,000 | 8,130,000 | 5,764,000 | 2,475,000 | 4,467,000 |
| Total assets | US$ in thousands | 35,177,000 | 38,570,000 | 36,954,000 | 39,523,000 | 47,414,000 |
| ROA | 32.02% | 21.08% | 15.60% | 6.26% | 9.42% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $11,264,000K ÷ $35,177,000K
= 32.02%
Based on the data provided, Altria Group's return on assets (ROA) has shown variable performance over the years. Specifically:
1. As of December 31, 2020, Altria Group had an ROA of 9.42%, which indicates the company generated 9.42 cents of profit for every dollar of assets it owns.
2. By December 31, 2021, the ROA had decreased to 6.26%, suggesting a decline in the company's efficiency in generating profit from its assets.
3. The performance improved significantly by the end of December 31, 2022, with an ROA of 15.60%, indicating a substantial increase in profitability relative to the assets employed.
4. The positive trend continued into December 31, 2023, where the ROA further increased to 21.08%, demonstrating Altria Group's enhanced ability to generate higher returns on its assets.
5. By the end of December 31, 2024, the ROA surged to 32.02%, reaching its highest level in the given period. This indicates a remarkable improvement in the company's asset efficiency and profitability.
In summary, Altria Group's ROA exhibited fluctuations, but overall trended positively over the years, showcasing the company's ability to effectively utilize its assets to generate higher returns. This upward trajectory suggests improved operational efficiency and effective management of the company's asset base. However, it is essential to continue monitoring the ROA to assess the long-term sustainability of Altria Group's profitability and asset utilization strategies.
Peer comparison
Dec 31, 2024