Altria Group (MO)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 38,570,000 | 36,954,000 | 39,523,000 | 47,414,000 | 49,271,000 |
| Total stockholders’ equity | US$ in thousands | -3,540,000 | -3,973,000 | -1,606,000 | 2,839,000 | 6,222,000 |
| Financial leverage ratio | — | — | — | 16.70 | 7.92 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $38,570,000K ÷ $-3,540,000K
= —
The financial leverage ratio for Altria Group Inc. was not available for the years 2023, 2022, and 2021. However, based on the available data from 2020 and 2019, we observe a significant increase in the financial leverage ratio from 7.92 in 2019 to 16.70 in 2020. This indicates that the company's reliance on debt to finance its operations and growth has increased substantially during this period.
A high financial leverage ratio suggests that the company has a higher proportion of debt in its capital structure compared to equity. While debt can provide tax advantages and leverage returns, it also increases financial risk, especially in volatile market conditions or economic downturns. Investors and creditors may closely monitor changes in the financial leverage ratio to assess the company's ability to manage its debt levels effectively and meet its financial obligations.
It is important for Altria Group Inc. to carefully manage its financial leverage ratio to maintain a healthy balance between debt and equity and ensure long-term financial stability and growth. Further analysis of the company's debt structure, interest coverage ratio, and overall financial health would be necessary to fully evaluate the implications of the changing financial leverage ratio over the years.
Peer comparison
Dec 31, 2023