Altria Group (MO)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 14,782,000 | 15,416,960 | 15,303,960 | 12,989,960 | 12,704,960 | 11,976,000 | 9,474,000 | 9,608,000 | 9,782,000 | 9,629,000 | 5,915,000 | 5,958,000 | 5,849,000 | 1,939,000 | 4,961,000 | 4,517,000 | 4,521,000 | 4,627,000 | 7,617,000 | 7,623,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -2,238,000 | -3,468,000 | -3,016,000 | -5,114,000 | -3,540,000 | -3,407,000 | -3,827,000 | -3,876,000 | -3,973,000 | -4,232,000 | -2,403,000 | -1,760,000 | -1,606,000 | -1,267,000 | 3,257,000 | 2,913,000 | 2,925,000 | 3,232,000 | 5,786,000 | 6,543,000 |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 152.32% | 155.06% | 154.56% | 143.16% | 131.65% | 116.51% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $14,782,000K ÷ ($—K + $-2,238,000K)
= —
Return on total capital is a key financial ratio that measures how efficiently a company generates profits from its total capital, including both debt and equity. Looking at the data provided for Altria Group, we observe a consistent upward trend in the return on total capital over the reported periods.
The ratio shows a significant improvement, starting at 116.51% as of March 31, 2020, and increasing to 154.56% by December 31, 2020. This demonstrates the company's ability to effectively utilize its capital to generate profits for its investors. Subsequently, the return on total capital continued to rise, reaching a peak of 155.06% by March 31, 2021, before showing a slight decrease to 152.32% by June 30, 2021.
The data for the subsequent periods is not available, as indicated by the dashes. However, based on the trend observed in the earlier periods, it can be inferred that Altria Group has been effectively managing its capital to generate strong returns. Consistent growth in return on total capital reflects the company's operational efficiency and ability to generate sustainable profits relative to the total capital employed.
Overall, the trend in Altria Group's return on total capital demonstrates strong financial performance and efficient utilization of its capital base to drive profitability.
Peer comparison
Dec 31, 2024