Return on Equity (ROE)
since 2005
Calculation
Altria Group Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (losses) attributable to Altria1 | ÷ | Stockholders’ equity (deficit) attributable to Altria1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | — | = | 100 | × | 8,130) | ÷ | (3,540) |
| Dec 31, 2022 | — | = | 100 | × | 5,764) | ÷ | (3,973) |
| Dec 31, 2021 | — | = | 100 | × | 2,475) | ÷ | (1,606) |
| Dec 31, 2020 | 157.34% | = | 100 | × | 4,467) | ÷ | 2,839) |
| Dec 31, 2019 | -20.78% | = | 100 | × | (1,293) | ÷ | 6,222) |
| Dec 31, 2018 | 47.09% | = | 100 | × | 6,963) | ÷ | 14,787) |
| Dec 31, 2017 | 66.48% | = | 100 | × | 10,222) | ÷ | 15,377) |
| Dec 31, 2016 | 111.50% | = | 100 | × | 14,239) | ÷ | 12,770) |
| Dec 31, 2015 | 181.98% | = | 100 | × | 5,241) | ÷ | 2,880) |
| Dec 31, 2014 | 168.21% | = | 100 | × | 5,070) | ÷ | 3,014) |
| Dec 31, 2013 | 110.10% | = | 100 | × | 4,535) | ÷ | 4,119) |
| Dec 31, 2012 | 131.94% | = | 100 | × | 4,180) | ÷ | 3,168) |
| Dec 31, 2011 | 92.12% | = | 100 | × | 3,390) | ÷ | 3,680) |
| Dec 31, 2010 | 75.21% | = | 100 | × | 3,905) | ÷ | 5,192) |
| Dec 31, 2009 | 78.79% | = | 100 | × | 3,206) | ÷ | 4,069) |
| Dec 31, 2008 | 174.33% | = | 100 | × | 4,930) | ÷ | 2,828) |
| Dec 31, 2007 | 52.74% | = | 100 | × | 9,786) | ÷ | 18,554) |
| Dec 31, 2006 | 30.34% | = | 100 | × | 12,022) | ÷ | 39,619) |
| Dec 31, 2005 | 29.22% | = | 100 | × | 10,435) | ÷ | 35,707) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial trajectory from 2005 to 2023 is characterized by significant volatility in net earnings and a profound contraction of the stockholders' equity base, which has fundamentally altered the Return on Equity (ROE) profile.
- Net Earnings Performance
- Net earnings exhibited substantial fluctuations over the period. After a peak of 12,022 million US$ in 2006, earnings entered a period of relative instability, reaching a low of 3,206 million US$ in 2009. A significant recovery occurred by 2016, with earnings peaking at 14,239 million US$. However, a sharp reversal occurred in 2019, resulting in a net loss of 1,293 million US$. Since 2020, a steady recovery trend has been observed, with net earnings climbing back to 8,130 million US$ by the end of 2023.
- Stockholders' Equity Erosion
- A persistent downward trend in stockholders' equity is evident. Starting at 35,707 million US$ in 2005, the equity base experienced a sharp decline by 2008. Although there was a temporary increase peaking at 15,377 million US$ in 2017, the equity continued to erode thereafter. By 2021, the equity transitioned into a deficit of 1,606 million US$, which widened to 3,973 million US$ in 2022 and remained negative at 3,540 million US$ in 2023.
- Return on Equity (ROE) Interpretation
- The ROE values demonstrate extreme volatility, largely driven by the shrinking equity denominator rather than earnings growth alone. Between 2008 and 2015, ROE reached hyper-inflated levels, peaking at 181.98% in 2015, reflecting a very small equity base relative to net income. The ratio collapsed to -20.78% in 2019, coinciding with the company's net loss. In 2020, ROE spiked again to 157.34% as earnings recovered while equity remained minimal. For the period 2021 through 2023, ROE is not reported, as the transition to negative stockholders' equity renders the traditional ROE calculation mathematically invalid or analytically meaningless.
The overall trend indicates a financial strategy that has resulted in a negative equity position, likely due to aggressive share repurchases or dividend distributions exceeding retained earnings, leading to a scenario where the company is operating with a deficit in stockholders' equity despite maintaining positive net earnings in recent years.
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Comparison to Competitors
Altria Group Inc., ROE, long-term trends, comparison to competitors
| Altria Group Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2023 | — | 41.30% | 17.50% | 49.04% | — |
| Dec 31, 2022 | — | 39.59% | 10.11% | 51.96% | — |
| Dec 31, 2021 | — | 42.48% | 15.21% | 47.48% | — |
| Dec 31, 2020 | 157.34% | 40.14% | 12.89% | 52.92% | — |
| Dec 31, 2019 | -20.78% | 46.99% | 14.19% | 49.47% | — |
| Dec 31, 2018 | 47.09% | 37.89% | 13.19% | 86.20% | — |
| Dec 31, 2017 | 66.48% | 7.31% | 11.19% | 44.60% | — |
| Dec 31, 2016 | 111.50% | 28.30% | 6.59% | 57.04% | — |
| Dec 31, 2015 | 181.98% | 28.77% | 25.94% | 45.73% | — |
| Dec 31, 2014 | 168.21% | 23.41% | 7.87% | 37.35% | — |
| Dec 31, 2013 | 110.10% | 25.88% | 12.09% | 27.76% | — |
| Dec 31, 2012 | 131.94% | 27.51% | 9.40% | 27.71% | — |
| Dec 31, 2011 | 92.12% | 27.10% | 10.02% | 31.29% | 3,751.53% |
| Dec 31, 2010 | 75.21% | 38.09% | 11.48% | 29.86% | 207.05% |
| Dec 31, 2009 | 78.79% | 27.52% | 11.67% | 35.38% | 110.95% |
| Dec 31, 2008 | 174.33% | 28.37% | 13.07% | 42.47% | 91.87% |
| Dec 31, 2007 | 52.74% | 27.51% | 9.49% | 32.83% | — |
| Dec 31, 2006 | 30.34% | 30.02% | 10.72% | 36.71% | — |
| Dec 31, 2005 | 29.22% | 29.79% | 8.89% | 28.62% | — |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Food, Beverage & Tobacco)
Altria Group Inc., ROE, long-term trends, comparison to sector (food, beverage & tobacco)
| Altria Group Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2023 | — | 52.90% |
| Dec 31, 2022 | — | 51.06% |
| Dec 31, 2021 | — | 53.84% |
| Dec 31, 2020 | 157.34% | 55.44% |
| Dec 31, 2019 | -20.78% | 55.17% |
| Dec 31, 2018 | 47.09% | 67.69% |
| Dec 31, 2017 | 66.48% | 35.87% |
| Dec 31, 2016 | 111.50% | 46.07% |
| Dec 31, 2015 | 181.98% | 51.57% |
| Dec 31, 2014 | 168.21% | 37.04% |
| Dec 31, 2013 | 110.10% | 33.90% |
| Dec 31, 2012 | 131.94% | 32.24% |
| Dec 31, 2011 | 92.12% | 30.95% |
| Dec 31, 2010 | 75.21% | 32.24% |
| Dec 31, 2009 | 78.79% | 30.24% |
| Dec 31, 2008 | 174.33% | 33.30% |
| Dec 31, 2007 | 52.74% | 21.47% |
| Dec 31, 2006 | 30.34% | 22.65% |
| Dec 31, 2005 | 29.22% | 19.24% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Staples)
Altria Group Inc., ROE, long-term trends, comparison to industry (consumer staples)
| Altria Group Inc. | Consumer Staples | |
|---|---|---|
| Dec 31, 2023 | — | 30.71% |
| Dec 31, 2022 | — | 32.10% |
| Dec 31, 2021 | — | 31.40% |
| Dec 31, 2020 | 157.34% | 30.98% |
| Dec 31, 2019 | -20.78% | 22.71% |
| Dec 31, 2018 | 47.09% | 28.05% |
| Dec 31, 2017 | 66.48% | 25.14% |
| Dec 31, 2016 | 111.50% | 25.00% |
| Dec 31, 2015 | 181.98% | 23.15% |
| Dec 31, 2014 | 168.21% | 23.21% |
| Dec 31, 2013 | 110.10% | 24.09% |
| Dec 31, 2012 | 131.94% | 23.55% |
| Dec 31, 2011 | 92.12% | 23.75% |
| Dec 31, 2010 | 75.21% | 24.19% |
| Dec 31, 2009 | 78.79% | 23.20% |
| Dec 31, 2008 | 174.33% | 22.49% |
| Dec 31, 2007 | 52.74% | 18.15% |
| Dec 31, 2006 | 30.34% | 18.58% |
| Dec 31, 2005 | 29.22% | 22.40% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).