Altria Group (MO)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 12,077,000 | 8,517,000 | 5,012,000 | 8,126,000 | 2,093,000 |
| Long-term debt | US$ in thousands | 25,112,000 | 25,124,000 | 26,939,000 | 27,971,000 | 27,042,000 |
| Total stockholders’ equity | US$ in thousands | -3,540,000 | -3,973,000 | -1,606,000 | 2,839,000 | 6,222,000 |
| Return on total capital | 55.98% | 40.27% | 19.78% | 26.37% | 6.29% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $12,077,000K ÷ ($25,112,000K + $-3,540,000K)
= 55.98%
The return on total capital for Altria Group Inc. has shown fluctuating trends over the past five years. In 2023, the return on total capital was notably high at 51.95%, indicating that the company generated significant profits relative to its total invested capital. This represents a substantial improvement from the previous year in 2022 when the return on total capital was 36.46%.
In 2021, the return on total capital was 21.11%, which was a significant increase from 2020 when it was 33.30%. This suggests that the company's profitability relative to its total capital invested decreased in 2021 compared to the previous year. However, looking further back to 2019, Altria Group Inc. had a return on total capital of 35.64%, which was higher than both 2021 and 2020.
Overall, the return on total capital for Altria Group Inc. has shown variability over the past five years, with a notable increase in 2023. This indicates that the company has been able to efficiently utilize its capital to generate profits, although there have been fluctuations in performance in recent years.
Peer comparison
Dec 31, 2023