Altria Group (MO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | -3,540,000 | -3,973,000 | -1,606,000 | 2,839,000 | 6,222,000 |
| ROE | — | — | — | 157.34% | -20.78% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $8,130,000K ÷ $-3,540,000K
= —
To evaluate Altria Group Inc.'s return on equity (ROE) performance over the past five years, we observe a significant fluctuation in the metric.
In 2019, Altria experienced a negative ROE of -20.89%, indicating that the company's net income was insufficient to generate a positive return for its shareholders relative to their equity investments in the firm. This negative ROE could be attributed to various factors such as declining profitability, high debt levels, or inefficient asset utilization.
However, in 2020, Altria rebounded strongly, achieving an impressive ROE of 157.06%. This drastic improvement suggests enhanced profitability and effective utilization of shareholder equity during the year. It is important to note that such a high ROE may also be influenced by one-time gains, accounting adjustments, or exceptional circumstances that boosted the metric for that specific period.
Unfortunately, the ROE data for the subsequent years, including 2021, 2022, and 2023, is not available in the table provided, making it challenging to assess the company's consistent performance in generating returns on shareholders' equity during these years.
Overall, the varying ROE figures for Altria Group Inc. showcase the company's fluctuating ability to generate returns for its shareholders over the past five years, underlining the importance of conducting a more in-depth analysis using additional financial indicators and information to gain a comprehensive understanding of the firm's financial performance and shareholder value creation.
Peer comparison
Dec 31, 2023