Altria Group (MO)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,782,000 | 12,318,000 | 8,517,000 | 5,012,000 | 8,126,000 |
| Interest expense | US$ in thousands | 1,124,000 | 989,000 | 1,128,000 | 1,188,000 | 1,223,000 |
| Interest coverage | 13.15 | 12.46 | 7.55 | 4.22 | 6.64 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,782,000K ÷ $1,124,000K
= 13.15
The interest coverage ratio of Altria Group has shown some fluctuation over the past five years. As of December 31, 2020, the interest coverage ratio was 6.64, indicating that the company earned 6.64 times the amount of interest expense being paid. However, by December 31, 2021, this ratio had decreased to 4.22, suggesting a decrease in the company's ability to cover its interest obligations with its operating income.
Subsequently, there was an improvement in the interest coverage ratio, reaching 7.55 by December 31, 2022, and further increasing to 12.46 by December 31, 2023, which indicates a positive trend in the company's ability to cover its interest expenses. By December 31, 2024, the interest coverage ratio had increased to 13.15, demonstrating a continued strong ability to meet interest payment obligations.
Overall, the data reflects variability in Altria Group's interest coverage over the period, with improvements in recent years suggesting a better ability to service its debt through operating profits.
Peer comparison
Dec 31, 2024