Altria Group (MO)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 13.63 | 16.74 | 16.21 | 14.43 | 8.68 | 8.04 |
The solvency ratios of Altria Group, as reflected in the financial data provided, indicate a strong financial position in terms of its debt metrics. The Debt-to-assets ratio has consistently remained at 0.00 across all the reported periods. This suggests that the company has not relied heavily on debt to finance its assets, indicating a low level of financial risk related to its asset base.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also remained at 0.00 for the periods reported. These ratios further confirm the company's minimal reliance on debt capital in its overall capital structure. It indicates that Altria Group has a high proportion of equity in relation to its total capital, which could signify a strong financial foundation and lower financial leverage.
The Financial leverage ratio, on the other hand, shows a varied trend over the reported periods, with values ranging from 8.04 to 16.74. The ratio reached its highest point in December 2020 at 16.74, indicating a higher level of financial leverage at that specific time. However, from March 2021 onwards, the values were not reported, suggesting a lack of data to analyze the trend in recent periods.
Overall, the solvency ratios of Altria Group, as depicted by the provided data, reflect a conservative approach towards debt management and a relatively strong financial position with a low level of debt relative to assets, capital, and equity.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 13.15 | 15.22 | 15.03 | 12.81 | 12.85 | 11.36 | 9.00 | 8.93 | 8.67 | 8.37 | 5.16 | 5.13 | 4.92 | 1.64 | 4.04 | 3.64 | 3.74 | 3.91 | 6.53 | 6.51 |
Interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting interest obligations.
Analyzing Altria Group's interest coverage over the past few years, we observe the following trends:
- In March 2020, the interest coverage was 6.51, indicating a healthy ability to cover interest payments.
- The ratio remained relatively stable around 6 in the following quarters until September 2020, where there was a noticeable drop to 3.91. This could suggest a decrease in earnings relative to interest expenses.
- The interest coverage ratio further declined to 1.64 by September 2021, indicating a potential strain on the company's ability to cover interest payments with its earnings.
- However, from December 2021 onwards, the interest coverage started improving, reaching 15.22 by September 2024, indicating a strong ability to cover interest expenses.
Overall, Altria Group's interest coverage ratio has shown fluctuations over the years but has exhibited an improving trend in recent quarters, reaching a comfortable level by the end of 2024. This suggests that the company's earnings are more than sufficient to meet its interest obligations, reflecting positively on its financial health.