Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Altria Group Inc. (NYSE:MO)

Analysis of Inventory

Advanced level


Inventory Disclosure

Altria Group Inc., balance sheet: inventory

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Leaf tobacco 874  940  941  892  957 
Other raw materials 192  186  170  164  181 
Work in process 696  647  560  512  444 
Finished product 531  558  554  483  449 
Inventories 2,293  2,331  2,225  2,051  2,031 

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

Item Description The company
Inventories Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Altria Group Inc.’s inventories increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Adjustment to Inventory: Conversion from LIFO to FIFO

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Inventories
Inventories at LIFO (as reported) 2,293  2,331  2,225  2,051  2,031 
Add: Inventory LIFO reserve 600  700  700  700  700 
Inventories at FIFO (adjusted) 2,893  3,031  2,925  2,751  2,731 
Adjustment to Current Assets
Current assets (as reported) 4,824  4,299  4,344  7,260  6,086 
Add: Inventory LIFO reserve 600  700  700  700  700 
Current assets (adjusted) 5,424  4,999  5,044  7,960  6,786 
Adjustment to Total Assets
Total assets (as reported) 49,271  55,638  43,202  45,932  32,535 
Add: Inventory LIFO reserve 600  700  700  700  700 
Total assets (adjusted) 49,871  56,338  43,902  46,632  33,235 
Adjustment to Stockholders’ Equity Attributable To Altria
Stockholders’ equity attributable to Altria (as reported) 6,222  14,787  15,377  12,770  2,880 
Add: Inventory LIFO reserve 600  700  700  700  700 
Stockholders’ equity attributable to Altria (adjusted) 6,822  15,487  16,077  13,470  3,580 
Adjustment to Net Earnings (losses) Attributable To Altria
Net earnings (losses) attributable to Altria (as reported) (1,293) 6,963  10,222  14,239  5,241 
Add: Increase (decrease) in inventory LIFO reserve (100) —  —  —  — 
Net earnings (losses) attributable to Altria (adjusted) (1,393) 6,963  10,222  14,239  5,241 

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

Altria Group Inc.’s inventory value on Dec 31, 2019 would be $2,893  (in millions) if the FIFO inventory method was used instead of LIFO. Altria Group Inc.’s inventories, valued on a LIFO basis, on Dec 31, 2019 were $2,293 . Altria Group Inc.’s inventories would have been $600  higher than reported on Dec 31, 2019 if the FIFO method had been used instead.


Altria Group Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Altria Group Inc., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current Ratio
Reported current ratio (LIFO) 0.59 0.20 0.64 0.98 0.86
Adjusted current ratio (FIFO) 0.66 0.24 0.74 1.08 0.96
Net Profit Margin
Reported net profit margin (LIFO) -5.15% 27.45% 39.97% 55.31% 20.61%
Adjusted net profit margin (FIFO) -5.55% 27.45% 39.97% 55.31% 20.61%
Total Asset Turnover
Reported total asset turnover (LIFO) 0.51 0.46 0.59 0.56 0.78
Adjusted total asset turnover (FIFO) 0.50 0.45 0.58 0.55 0.77
Financial Leverage
Reported financial leverage (LIFO) 7.92 3.76 2.81 3.60 11.30
Adjusted financial leverage (FIFO) 7.31 3.64 2.73 3.46 9.28
Return on Equity (ROE)
Reported ROE (LIFO) -20.78% 47.09% 66.48% 111.50% 181.98%
Adjusted ROE (FIFO) -20.42% 44.96% 63.58% 105.71% 146.40%
Return on Assets (ROA)
Reported ROA (LIFO) -2.62% 12.51% 23.66% 31.00% 16.11%
Adjusted ROA (FIFO) -2.79% 12.36% 23.28% 30.53% 15.77%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Altria Group Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Altria Group Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Altria Group Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Altria Group Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Altria Group Inc.’s adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Altria Group Inc.’s adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.

Altria Group Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Current assets 4,824  4,299  4,344  7,260  6,086 
Current liabilities 8,174  21,193  6,792  7,375  7,078 
Liquidity Ratio
Current ratio1 0.59 0.20 0.64 0.98 0.86
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets 5,424  4,999  5,044  7,960  6,786 
Current liabilities 8,174  21,193  6,792  7,375  7,078 
Liquidity Ratio
Adjusted current ratio2 0.66 0.24 0.74 1.08 0.96

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 4,824 ÷ 8,174 = 0.59

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,424 ÷ 8,174 = 0.66

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by current liabilities. Altria Group Inc.’s adjusted current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria (1,293) 6,963  10,222  14,239  5,241 
Net revenues 25,110  25,364  25,576  25,744  25,434 
Profitability Ratio
Net profit margin1 -5.15% 27.45% 39.97% 55.31% 20.61%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria (1,393) 6,963  10,222  14,239  5,241 
Net revenues 25,110  25,364  25,576  25,744  25,434 
Profitability Ratio
Adjusted net profit margin2 -5.55% 27.45% 39.97% 55.31% 20.61%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Net profit margin = 100 × Net earnings (losses) attributable to Altria ÷ Net revenues
= 100 × -1,293 ÷ 25,110 = -5.15%

2 Adjusted net profit margin = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Net revenues
= 100 × -1,393 ÷ 25,110 = -5.55%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Altria Group Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net revenues 25,110  25,364  25,576  25,744  25,434 
Total assets 49,271  55,638  43,202  45,932  32,535 
Activity Ratio
Total asset turnover1 0.51 0.46 0.59 0.56 0.78
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net revenues 25,110  25,364  25,576  25,744  25,434 
Adjusted total assets 49,871  56,338  43,902  46,632  33,235 
Activity Ratio
Adjusted total asset turnover2 0.50 0.45 0.58 0.55 0.77

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 25,110 ÷ 49,271 = 0.51

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 25,110 ÷ 49,871 = 0.50

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Altria Group Inc.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 49,271  55,638  43,202  45,932  32,535 
Stockholders’ equity attributable to Altria 6,222  14,787  15,377  12,770  2,880 
Solvency Ratio
Financial leverage1 7.92 3.76 2.81 3.60 11.30
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets 49,871  56,338  43,902  46,632  33,235 
Adjusted stockholders’ equity attributable to Altria 6,822  15,487  16,077  13,470  3,580 
Solvency Ratio
Adjusted financial leverage2 7.31 3.64 2.73 3.46 9.28

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity attributable to Altria
= 49,271 ÷ 6,222 = 7.92

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to Altria
= 49,871 ÷ 6,822 = 7.31

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Altria Group Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria (1,293) 6,963  10,222  14,239  5,241 
Stockholders’ equity attributable to Altria 6,222  14,787  15,377  12,770  2,880 
Profitability Ratio
ROE1 -20.78% 47.09% 66.48% 111.50% 181.98%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria (1,393) 6,963  10,222  14,239  5,241 
Adjusted stockholders’ equity attributable to Altria 6,822  15,487  16,077  13,470  3,580 
Profitability Ratio
Adjusted ROE2 -20.42% 44.96% 63.58% 105.71% 146.40%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROE = 100 × Net earnings (losses) attributable to Altria ÷ Stockholders’ equity attributable to Altria
= 100 × -1,293 ÷ 6,222 = -20.78%

2 Adjusted ROE = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Adjusted stockholders’ equity attributable to Altria
= 100 × -1,393 ÷ 6,822 = -20.42%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Altria Group Inc.’s adjusted ROE deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings (losses) attributable to Altria (1,293) 6,963  10,222  14,239  5,241 
Total assets 49,271  55,638  43,202  45,932  32,535 
Profitability Ratio
ROA1 -2.62% 12.51% 23.66% 31.00% 16.11%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses) attributable to Altria (1,393) 6,963  10,222  14,239  5,241 
Adjusted total assets 49,871  56,338  43,902  46,632  33,235 
Profitability Ratio
Adjusted ROA2 -2.79% 12.36% 23.28% 30.53% 15.77%

Based on: 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-25).

2019 Calculations

1 ROA = 100 × Net earnings (losses) attributable to Altria ÷ Total assets
= 100 × -1,293 ÷ 49,271 = -2.62%

2 Adjusted ROA = 100 × Adjusted net earnings (losses) attributable to Altria ÷ Adjusted total assets
= 100 × -1,393 ÷ 49,871 = -2.79%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Altria Group Inc.’s adjusted ROA deteriorated from 2017 to 2018 and from 2018 to 2019.