Altria Group Inc. (MO) | Debt and Solvency

Ratios (Summary)

Altria Group Inc., debt and solvency ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Debt to equity	4.38	3.72	2.35	2.94	2.64
Debt to capital	0.81	0.79	0.70	0.75	0.73
Interest coverage	6.74	5.58	6.04	5.10	29.23

Source: Based on data from Altria Group Inc. Annual Reports

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Altria Group Inc.'s debt-to-equity ratio deteriorated from 2010 to 2011 and from 2011 to 2012.
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Altria Group Inc.'s debt-to-capital ratio deteriorated from 2010 to 2011 and from 2011 to 2012.
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Altria Group Inc.'s interest coverage ratio deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Current portion of long-term debt	1,459	600	–	775	135
Long-term debt, excluding current portion	12,419	13,089	12,194	11,185	6,839
Financial services debt	–	–	–	–	500
Total debt	13,878	13,689	12,194	11,960	7,474
Stockholders’ equity attributable to Altria Group, Inc.	3,168	3,680	5,192	4,069	2,828
Debt to Equity, Comparison to Industry
Altria Group Inc.¹	4.38	3.72	2.35	2.94	2.64
Industry, Consumer Goods	1.02	1.01	0.97	0.97	0.87

Source: Based on data from Altria Group Inc. Annual Reports

2012 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity attributable to Altria Group, Inc.
= 13,878 ÷ 3,168 = 4.38

Ratio	Description	The company
Debt-to-equity ratio	A solvency ratio calculated as total debt divided by total shareholders' equity.	Altria Group Inc.'s debt-to-equity ratio deteriorated from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Current portion of long-term debt	1,459	600	–	775	135
Long-term debt, excluding current portion	12,419	13,089	12,194	11,185	6,839
Financial services debt	–	–	–	–	500
Total debt	13,878	13,689	12,194	11,960	7,474
Stockholders’ equity attributable to Altria Group, Inc.	3,168	3,680	5,192	4,069	2,828
Total capital	17,046	17,369	17,386	16,029	10,302
Debt to Capital, Comparison to Industry
Altria Group Inc.¹	0.81	0.79	0.70	0.75	0.73
Industry, Consumer Goods	0.50	0.50	0.49	0.49	0.47

Source: Based on data from Altria Group Inc. Annual Reports

2012 Calculations

¹ Debt to capital = Total debt ÷ Total capital
= 13,878 ÷ 17,046 = 0.81

Ratio	Description	The company
Debt-to-capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders' equity.	Altria Group Inc.'s debt-to-capital ratio deteriorated from 2010 to 2011 and from 2011 to 2012.

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Net earnings attributable to Altria Group, Inc.	4,180	3,390	3,905	3,206	4,930
Add: Net earnings attributable to noncontrolling interests	3	3	2	2	61
Add: Interest expense	1,128	1,220	1,136	1,189	237
Add: Income tax expense (benefit)	2,294	2,189	1,816	1,669	1,699
Earnings before interest and tax (EBIT)	7,605	6,802	6,859	6,066	6,927
Interest Coverage, Comparison to Industry
Altria Group Inc.¹	6.74	5.58	6.04	5.10	29.23
Industry, Consumer Goods	14.33	14.76	12.20	10.17	20.33

Source: Based on data from Altria Group Inc. Annual Reports

2012 Calculations

¹ Interest coverage = EBIT ÷ Interest expense
= 7,605 ÷ 1,128 = 6.74

Ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Altria Group Inc.'s interest coverage ratio deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.