Altria Group (MO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -3,540,000 | -3,973,000 | -1,606,000 | 2,839,000 | 6,222,000 |
| Debt-to-capital ratio | 1.16 | 1.19 | 1.06 | 0.91 | 0.81 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $25,112,000K ÷ ($25,112,000K + $-3,540,000K)
= 1.16
The debt-to-capital ratio of Altria Group Inc. has been fluctuating over the past five years, indicating varying levels of reliance on debt to finance its operations and growth. The ratio increased from 0.82 in 2019 to 1.16 in 2023, which suggests a significant rise in the proportion of debt in the company's capital structure. This trend generally indicates a higher financial risk as the company is increasingly leveraging debt to fund its activities.
The highest ratio recorded was in 2022 at 1.17, indicating a peak in the company's debt relative to its total capital during that year. However, it decreased slightly to 1.16 in 2023. While the ratio of 1.06 in 2021 was lower compared to 2022 and 2023, it still reflects a significant reliance on debt financing.
The debt-to-capital ratio of 0.91 in 2020 was lower than the subsequent years, indicating relatively lower debt levels in the company's capital structure during that period. This may suggest a more conservative approach to financing operations and investments in that particular year.
Overall, the increasing trend in the debt-to-capital ratio of Altria Group Inc. from 2019 to 2023 may raise concerns about the company's financial risk and ability to manage its debt obligations effectively. It is essential for stakeholders to monitor this ratio closely to assess the company's financial health and sustainability in the long run.
Peer comparison
Dec 31, 2023