Altria Group (MO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 25,112,000 | 25,124,000 | 26,939,000 | 27,971,000 | 27,042,000 |
| Total assets | US$ in thousands | 38,570,000 | 36,954,000 | 39,523,000 | 47,414,000 | 49,271,000 |
| Debt-to-assets ratio | 0.65 | 0.68 | 0.68 | 0.59 | 0.55 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $25,112,000K ÷ $38,570,000K
= 0.65
The debt-to-assets ratio of Altria Group Inc. has shown an increasing trend over the past five years. In 2023, the ratio stands at 0.68, which indicates that 68% of the company's assets are financed through debt. This ratio increased from 0.62 in 2020 to 0.68 in 2023, suggesting that the company has been relying more on debt to finance its assets.
The higher debt-to-assets ratio can indicate potential risks related to the company's financial leverage and ability to meet its debt obligations. However, it can also suggest that the company is taking advantage of low-interest rates to fund growth opportunities or other strategic initiatives.
Overall, a higher debt-to-assets ratio may raise concerns about the company's financial health and liquidity, highlighting the importance of closely monitoring how Altria manages its debt levels and its ability to generate sufficient cash flows to service its debt obligations.
Peer comparison
Dec 31, 2023