Altria Group Inc. (NYSE:MO)

Current assets

The current assets experienced notable fluctuations over the period from 2019 to 2023. Initially, there was a substantial increase from 4824 million US dollars in 2019 to 7117 million in 2020, marking significant growth. However, the subsequent year saw a decline to 6083 million in 2021. The assets then rose again in 2022 to 7220 million, reaching the highest level within the analyzed timeframe. By 2023, current assets decreased sharply to 5585 million. Overall, the trajectory shows volatility with alternating periods of increase and decline.

Adjusted current assets

Adjusted current assets followed a pattern similar to that of current assets, but with consistently higher values each year. Starting at 5424 million in 2019, the adjusted figure increased sharply to 7717 million in 2020. It then decreased in 2021 to 6683 million, rebounded in 2022 to a peak of 7920 million, and subsequently declined to 6285 million in 2023. This pattern highlights a parallel volatility in adjusted current assets, reflecting the adjustments applied may have amplified the underlying trends seen in current assets.

Total assets

The total assets demonstrate a declining trend from 2019 through 2022, decreasing from approximately 49.3 billion US dollars to 36.9 billion US dollars. There is a slight reversal in 2023, with total assets increasing to around 38.6 billion US dollars. This indicates an overall contraction in the asset base over the five-year period, with a modest recovery in the final year.

Adjusted total assets

Adjusted total assets closely mirror the trend observed in total assets. Starting at about 49.8 billion US dollars in 2019, there is a steady decrease through 2022 to roughly 37.6 billion US dollars, followed by a small increase to nearly 39.2 billion US dollars in 2023. The adjusted figures consistently remain slightly higher than the total assets, suggesting adjustments that marginally increase the asset valuation but follow the same directional trend.

Overall, both total and adjusted total assets exhibit a significant decline over the initial four years, reflective of a possible strategic contraction, asset disposals, or impairments. The minor uptick in the final year could imply renewed investment, asset acquisitions, or valuation adjustments contributing to a stabilization or growth phase. The similarity in patterns between the two asset measures confirms the robustness of the observed trend despite adjustments.

The financial analysis over the five-year period reveals several notable trends in liabilities.

Total liabilities

The total liabilities exhibited a moderate increase from 42,914 million US dollars in 2019 to a peak of 44,449 million in 2020. Thereafter, there was a consistent decline for the next two years, reaching 40,877 million in 2022. In the most recent year, 2023, total liabilities increased slightly to 42,060 million. This pattern suggests a period of debt accumulation up to 2020 followed by efforts towards liability reduction before a mild rebound in 2023.

Adjusted total liabilities

Adjusted total liabilities display a somewhat similar pattern, increasing from 37,831 million in 2019 to 39,917 million in 2020. A decrease followed for 2021, reaching 37,437 million, but then figures marginally increased over the subsequent two years, ending at 39,261 million in 2023. The fluctuations in adjusted liabilities appear less pronounced compared to total liabilities but reflect a comparable trend of initial increase, followed by reduction, and then a mild uptrend.

Overall, the data indicates that the company experienced a temporary rise in liabilities during 2020, potentially linked to external factors or strategic financing decisions. Subsequent years exhibit a controlled reduction in liabilities, with a partial resurgence in the latest period. The adjusted liability figures generally follow the same trajectory but remain consistently lower than total liabilities, highlighting adjustments made for certain financial considerations.

Stockholders’ Equity (Deficit) Attributable to Altria

There is a clear downward trend in stockholders' equity attributable to Altria over the five-year period. Starting at $6,222 million at the end of 2019, the value decreased sharply to $2,839 million in 2020, followed by a transition into negative equity at the end of 2021, with -$1,606 million. This negative trend intensified in the subsequent years, reaching -$3,973 million by the end of 2022 and slightly improving to -$3,540 million by the end of 2023. The movement indicates a significant deterioration in the company's net asset position relative to shareholders over time, suggesting challenges in asset management, liabilities, or accumulated losses.

Adjusted Total Stockholders’ Equity (Deficit)

The adjusted total stockholders’ equity follows a similar pattern of decline, but with generally higher values compared to the unadjusted equity, reflecting adjustments that affect the overall equity measurement. Beginning at $11,980 million at the end of 2019, it declined to $7,998 million in 2020 and dropped substantially to $2,659 million by December 2021. The adjusted equity then moved into a deficit position by the end of 2022 at -$401 million and further declined slightly to -$19 million at the end of 2023. This trajectory reinforces the notable erosion of equity but suggests that adjustments partly buffer the pure equity decline, though not sufficiently to maintain a positive balance in recent years.

Total reported debt

The total reported debt showed a fluctuating but generally decreasing trend over the examined period. Starting at US$28,042 million in 2019, it increased to US$29,471 million in 2020, then consistently declined each subsequent year, reaching US$26,233 million in 2023. This indicates a gradual reduction in debt levels after a peak in 2020.

Stockholders’ equity (deficit) attributable to Altria

This item displayed a significant and concerning deterioration over the years. The equity decreased sharply from US$6,222 million in 2019 to US$2,839 million in 2020. It then turned negative in 2021 (-US$1,606 million) and continued declining further into negative territory through 2022 (-US$3,973 million) and 2023 (-US$3,540 million). This trend indicates growing shareholder deficit and potential financial distress.

Total reported capital

Total reported capital, the sum of debt and equity, declined steadily over the five-year period. After a slight decrease from US$34,264 million in 2019 to US$32,310 million in 2020, the decline steepened in subsequent years, reaching US$22,693 million in 2023. This reflects the combined effect of falling equity and gradual debt reduction.

Adjusted total stockholders’ equity (deficit)

The adjusted measure of equity also exhibited a downward trajectory consistent with the reported equity figures, though starting from a higher base. It decreased from US$11,980 million in 2019 to US$7,998 million in 2020, dropped sharply to US$2,659 million in 2021, and moved into negative values in 2022 (-US$401 million) and 2023 (-US$19 million). This confirms challenges in maintaining positive equity after adjustments.

Adjusted total capital

Adjusted total capital declined steadily, mirroring the overall downward pattern seen in total reported capital. It decreased from US$40,022 million in 2019 to US$37,469 million in 2020, then fell more sharply to US$30,703 million in 2021 and continued down to US$26,214 million by 2023. This decline reflects the compounded effects of adjusting equity downward, alongside reductions in debt.

Net Earnings (Losses) Attributable to Altria

There is a clear recovery trend in net earnings starting from a significant loss of -1,293 million USD in 2019. In 2020, net earnings sharply increased to 4,467 million USD and, although there was a decline to 2,475 million USD in 2021, the general trajectory remained positive. This was followed by a substantial increase to 5,764 million USD in 2022 and further growth to 8,130 million USD in 2023, highlighting strong profitability improvement over the analyzed period.

Adjusted Net Earnings (Losses)

Adjusted net earnings also reflect a considerable turnaround. In 2019, adjusted net earnings were deeply negative at -1,810 million USD. In 2020, there was a pronounced rise to 2,813 million USD, followed by a slight decrease to 2,600 million USD in 2021. Subsequent years saw significant gains, with adjusted net earnings increasing to 5,202 million USD in 2022 and approaching 8,000 million USD in 2023. This indicates improved ongoing operational performance after adjustments.

Overall Trend Analysis

Both net earnings and adjusted net earnings reveal a consistent and strong recovery from negative results in 2019 to robust positive earnings by 2023. While 2021 experienced a dip in both metrics, the company demonstrated strong resilience and accelerated growth in the following years. The magnitude of improvement suggests effective management of financial performance and possibly strategic initiatives that have positively impacted profitability.