Altria Group (MO)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.65 | 0.66 | 0.65 | 0.65 | 0.68 | 0.73 | 0.68 | 0.63 | 0.68 | 0.68 | 0.64 | 0.58 | 0.59 | 0.59 | 0.55 | 0.51 | 0.55 | 0.51 | 0.47 | 0.46 |
| Debt-to-capital ratio | 1.16 | 1.17 | 1.19 | 1.19 | 1.19 | 1.21 | 1.11 | 1.07 | 1.06 | 1.05 | 0.90 | 0.91 | 0.91 | 0.90 | 0.83 | 0.80 | 0.81 | 0.72 | 0.65 | 0.66 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 8.67 | 9.67 | 9.85 | 8.84 | 4.84 | 4.12 | 4.35 | 2.55 | 1.87 | 1.92 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 13.63 | 16.74 | 16.70 | 14.86 | 8.83 | 8.04 | 7.92 | 5.02 | 3.98 | 4.21 |
The solvency ratios for Altria Group Inc. indicate the company's ability to meet its long-term debt obligations and overall financial stability.
1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Altria's debt-to-assets ratio has fluctuated over the quarters, ranging from 0.68 to 0.77. A lower ratio indicates less reliance on debt financing for assets, which could be seen as favorable for solvency.
2. Debt-to-capital ratio: This ratio reflects the proportion of the company's capital that is financed through debt. Altria's debt-to-capital ratio has also varied but has generally remained around 1.16 to 1.19. A high ratio suggests a higher level of debt relative to capital, which may increase financial risk.
3. Debt-to-equity ratio: Not provided in the data. This ratio compares a company's total debt to its shareholders' equity and is a key measure of leverage. It would have provided further insights into the company's financial structure and risk.
4. Financial leverage ratio: Not provided in the data. This ratio assesses the extent to which a company uses debt to finance its assets. It would have given a more comprehensive view of the company's overall leverage position.
Overall, based on the data available, Altria Group Inc. seems to maintain a moderate level of debt relative to its assets and capital structure, with some fluctuations across the quarters. Monitoring these solvency ratios over time can give investors and stakeholders a clearer picture of the company's long-term financial health and risk management.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.68 | 10.98 | 11.01 | 10.96 | 10.57 | 10.28 | 10.19 | 10.12 | 9.73 | 9.63 | 9.45 | 9.04 | 8.99 | 9.05 | 9.00 | 8.90 | 8.07 | 8.38 | 9.10 | 10.23 |
Interest coverage is a key financial ratio that measures a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.
Analyzing the interest coverage ratios of Altria Group Inc. for the past eight quarters, we can see a fluctuating trend. The interest coverage ratios for Q4 2023 (11.92) and Q3 2023 (11.93) are relatively high, suggesting that the company's earnings are sufficient to comfortably cover its interest expenses. This indicates a strong ability to meet its interest obligations.
However, the interest coverage ratio decreased in Q2 2023 (9.39) and Q1 2023 (7.99), although it remained above 7, which is generally considered a healthy level. It is worth noting that the interest coverage ratio has shown an increasing trend from Q1 2022 (5.07) to Q3 2022 (7.06), indicating an improvement in the company's ability to cover its interest expenses.
The lowest interest coverage ratio was observed in Q2 2022 (3.87), which may raise some concerns about the company's ability to service its debt obligations during that period. However, it is important to consider the overall trend and the factors contributing to fluctuations in the ratio over time.
In conclusion, Altria Group Inc. has demonstrated a generally strong ability to cover its interest expenses, as indicated by the consistently high interest coverage ratios in recent quarters. However, investors and stakeholders should continue to monitor the company's financial performance and leverage levels to ensure ongoing sustainability.