Altria Group (MO)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,547,000 | 11,569,000 | 11,592,000 | 11,792,000 | 11,919,000 | 11,834,000 | 11,673,000 | 11,754,000 | 11,560,000 | 11,408,000 | 11,617,000 | 11,227,000 | 10,873,000 | 10,719,000 | 10,503,000 | 10,424,000 | 10,326,000 | 9,643,000 | 9,256,000 | 9,037,000 |
| Long-term debt | US$ in thousands | 25,112,000 | 23,977,000 | 24,074,000 | 24,048,000 | 25,124,000 | 24,848,000 | 25,046,000 | 25,405,000 | 26,939,000 | 27,022,000 | 28,241,000 | 28,180,000 | 27,971,000 | 27,755,000 | 27,542,000 | 26,971,000 | 27,042,000 | 26,903,000 | 27,096,000 | 27,024,000 |
| Total stockholders’ equity | US$ in thousands | -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 | 2,839,000 | 3,139,000 | 5,688,000 | 6,543,000 | 6,222,000 | 10,545,000 | 14,464,000 | 14,079,000 |
| Return on total capital | 53.53% | 56.24% | 57.25% | 58.46% | 56.35% | 57.40% | 51.55% | 49.71% | 45.63% | 44.29% | 36.88% | 36.11% | 35.29% | 34.70% | 31.61% | 31.10% | 31.04% | 25.75% | 22.27% | 21.99% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $11,547,000K ÷ ($25,112,000K + $-3,540,000K)
= 53.53%
Altria Group Inc.'s return on total capital has demonstrated a fluctuating trend over the past eight quarters. The company achieved a peak return on total capital of 54.12% in Q3 2023, indicating efficient utilization of its total capital to generate profits during that period. This improved performance followed a strong performance in Q2 2023, where the return on total capital stood at 39.49%.
However, the return on total capital in Q4 2023 declined slightly to 51.95% from the Q3 peak. Despite this decrease, the company has consistently maintained relatively high returns on total capital throughout the analyzed period, indicating effective capital allocation strategies in generating profits.
Comparing the figures to the previous year, Altria Group Inc. has shown a significant improvement in its return on total capital. In Q4 2022, the return on total capital was 36.46%, which increased to 51.95% in Q4 2023, reflecting the company's efforts to enhance its operational efficiency and profitability.
Additionally, there was a notable increase in return on total capital between Q2 and Q3 2022, where the ratio nearly doubled from 17.17% to 35.98%. This improvement demonstrated a significant boost in Altria Group Inc.'s ability to generate returns from its total capital during that period.
Overall, the fluctuating trend of Altria Group Inc.'s return on total capital underscores the company's dynamic financial performance and strategic decisions in optimizing its capital efficiency for profitability.
Peer comparison
Dec 31, 2023