Analysis of Debt
Total Debt (Carrying Amount)
Altria Group Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
An analysis of the debt carrying amounts from 2019 to 2023 reveals a general trajectory of deleveraging following a peak in the 2020 fiscal year. Total long-term debt, including the current portion, increased between 2019 and 2020 before initiating a consistent downward trend over the subsequent three years.
- Total Debt Trajectory
- The total carrying amount of debt peaked at US$ 29,471 million in 2020 and declined to US$ 26,233 million by December 31, 2023. This represents a total reduction of US$ 3,238 million from the 2020 peak, suggesting a concerted effort to reduce the total debt burden.
- Non-Current Debt Analysis
- Long-term debt excluding the current portion constitutes the bulk of the total liability. This figure rose to US$ 27,971 million in 2020 before decreasing to US$ 25,112 million by 2023. The most pronounced decline occurred between 2021 and 2022, with a reduction of US$ 1,815 million in non-current obligations.
- Current Portion Volatility
- The current portion of long-term debt exhibits a fluctuating pattern rather than a linear trend, ranging from a minimum of US$ 1,000 million in 2019 to a maximum of US$ 1,556 million in 2022. These variations reflect the cyclical nature of debt maturity schedules rather than a structural change in the company's long-term borrowing strategy.
The overall debt profile indicates that while short-term obligations remain variable, the long-term debt carrying amount has been systematically reduced since 2020, contributing to a lower total debt balance as of the end of 2023 compared to 2019 levels.
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Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt, including current portion (fair value) | 24,373) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.93 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.25%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.50% | 22,888) | 1,030) | |
| 7.75% | 42) | 3) | |
| 2.50% | 3,303) | 83) | |
| Total | 26,233) | 1,116) | |
| 4.25% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 1,116 ÷ 26,233 = 4.25%