Microsoft Excel LibreOffice Calc

Adjusted Ratios

Difficulty: Advanced


Adjusted Ratios (Summary)

Altria Group Inc., adjusted ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Activity
Total Asset Turnover
Reported 0.59 0.56 0.78 0.71 0.70
Adjusted 0.58 0.55 0.79 0.72 0.71
Liquidity
Current Ratio
Reported 0.64 0.98 0.86 0.90 0.93
Adjusted 0.74 1.08 0.79 0.84 0.88
Solvency
Debt to Equity
Reported 0.90 1.09 4.49 4.87 3.52
Adjusted 0.66 0.65 1.67 1.76 1.41
Debt to Capital
Reported 0.47 0.52 0.82 0.83 0.78
Adjusted 0.40 0.39 0.62 0.64 0.58
Financial Leverage
Reported 2.81 3.60 11.30 11.44 8.46
Adjusted 2.08 2.16 4.09 4.04 3.31
Profitability
Net Profit Margin
Reported 39.97% 55.31% 20.61% 20.68% 18.54%
Adjusted 28.19% 72.52% 17.74% 14.83% 21.15%
Return on Equity (ROE)
Reported 66.48% 111.50% 181.98% 168.21% 110.10%
Adjusted 34.07% 86.22% 57.09% 42.83% 49.41%
Return on Assets (ROA)
Reported 23.66% 31.00% 16.11% 14.71% 13.01%
Adjusted 16.36% 39.85% 13.97% 10.61% 14.92%
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 deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Altria Group Inc.'s adjusted current ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Altria Group Inc.'s adjusted debt-to-equity ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Altria Group Inc.'s adjusted debt-to-capital ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
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 declined from 2015 to 2016 and from 2016 to 2017.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Altria Group Inc.'s adjusted net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Altria Group Inc.'s adjusted ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Altria Group Inc.'s adjusted ROA improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net revenues 25,576  25,744  25,434  24,522  24,466 
Total assets 43,202  45,932  32,535  34,475  34,859 
Ratio
Total asset turnover1 0.59 0.56 0.78 0.71 0.70
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 44,064  46,849  32,311  34,285  34,684 
Ratio
Adjusted total asset turnover3 0.58 0.55 0.79 0.72 0.71

2017 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 25,576 ÷ 43,202 = 0.59

2 Adjusted total assets. See Details »

3 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 25,576 ÷ 44,064 = 0.58

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 deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Current assets 4,344  7,260  6,086  6,878  6,590 
Current liabilities 6,792  7,375  7,078  7,673  7,058 
Ratio
Current ratio1 0.64 0.98 0.86 0.90 0.93
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted current assets2 5,044  7,960  5,611  6,435  6,190 
Ratio
Adjusted current ratio3 0.74 1.08 0.79 0.84 0.88

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 4,344 ÷ 6,792 = 0.64

2 Adjusted current assets. See Details »

3 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,044 ÷ 6,792 = 0.74

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Altria Group Inc.'s adjusted current ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 13,894  13,881  12,919  14,693  14,517 
Stockholders’ equity attributable to Altria Group, Inc. 15,377  12,770  2,880  3,014  4,119 
Ratio
Debt to equity1 0.90 1.09 4.49 4.87 3.52
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 14,056  14,098  13,170  14,946  14,742 
Adjusted total stockholders’ equity3 21,163  21,654  7,905  8,491  10,471 
Ratio
Adjusted debt to equity4 0.66 0.65 1.67 1.76 1.41

2017 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity attributable to Altria Group, Inc.
= 13,894 ÷ 15,377 = 0.90

2 Adjusted total debt. See Details »

3 Adjusted total stockholders’ equity. See Details »

4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 14,056 ÷ 21,163 = 0.66

Ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Altria Group Inc.'s adjusted debt-to-equity ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 13,894  13,881  12,919  14,693  14,517 
Total capital 29,271  26,651  15,799  17,707  18,636 
Ratio
Debt to capital1 0.47 0.52 0.82 0.83 0.78
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 14,056  14,098  13,170  14,946  14,742 
Adjusted total capital3 35,219  35,752  21,075  23,437  25,213 
Ratio
Adjusted debt to capital4 0.40 0.39 0.62 0.64 0.58

2017 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 13,894 ÷ 29,271 = 0.47

2 Adjusted total debt. See Details »

3 Adjusted total capital. See Details »

4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 14,056 ÷ 35,219 = 0.40

Ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Altria Group Inc.'s adjusted debt-to-capital ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total assets 43,202  45,932  32,535  34,475  34,859 
Stockholders’ equity attributable to Altria Group, Inc. 15,377  12,770  2,880  3,014  4,119 
Ratio
Financial leverage1 2.81 3.60 11.30 11.44 8.46
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 44,064  46,849  32,311  34,285  34,684 
Adjusted total stockholders’ equity3 21,163  21,654  7,905  8,491  10,471 
Ratio
Adjusted financial leverage4 2.08 2.16 4.09 4.04 3.31

2017 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity attributable to Altria Group, Inc.
= 43,202 ÷ 15,377 = 2.81

2 Adjusted total assets. See Details »

3 Adjusted total stockholders’ equity. See Details »

4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 44,064 ÷ 21,163 = 2.08

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 declined from 2015 to 2016 and from 2016 to 2017.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net earnings attributable to Altria Group, Inc. 10,222  14,239  5,241  5,070  4,535 
Net revenues 25,576  25,744  25,434  24,522  24,466 
Ratio
Net profit margin1 39.97% 55.31% 20.61% 20.68% 18.54%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive earnings2 7,211  18,670  4,513  3,637  5,174 
Ratio
Adjusted net profit margin3 28.19% 72.52% 17.74% 14.83% 21.15%

2017 Calculations

1 Net profit margin = 100 × Net earnings attributable to Altria Group, Inc. ÷ Net revenues
= 100 × 10,222 ÷ 25,576 = 39.97%

2 Adjusted comprehensive earnings. See Details »

3 Adjusted net profit margin = 100 × Adjusted comprehensive earnings ÷ Net revenues
= 100 × 7,211 ÷ 25,576 = 28.19%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Altria Group Inc.'s adjusted net profit margin improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net earnings attributable to Altria Group, Inc. 10,222  14,239  5,241  5,070  4,535 
Stockholders’ equity attributable to Altria Group, Inc. 15,377  12,770  2,880  3,014  4,119 
Ratio
ROE1 66.48% 111.50% 181.98% 168.21% 110.10%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive earnings2 7,211  18,670  4,513  3,637  5,174 
Adjusted total stockholders’ equity3 21,163  21,654  7,905  8,491  10,471 
Ratio
Adjusted ROE4 34.07% 86.22% 57.09% 42.83% 49.41%

2017 Calculations

1 ROE = 100 × Net earnings attributable to Altria Group, Inc. ÷ Stockholders’ equity attributable to Altria Group, Inc.
= 100 × 10,222 ÷ 15,377 = 66.48%

2 Adjusted comprehensive earnings. See Details »

3 Adjusted total stockholders’ equity. See Details »

4 Adjusted ROE = 100 × Adjusted comprehensive earnings ÷ Adjusted total stockholders’ equity
= 100 × 7,211 ÷ 21,163 = 34.07%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Altria Group Inc.'s adjusted ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net earnings attributable to Altria Group, Inc. 10,222  14,239  5,241  5,070  4,535 
Total assets 43,202  45,932  32,535  34,475  34,859 
Ratio
ROA1 23.66% 31.00% 16.11% 14.71% 13.01%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive earnings2 7,211  18,670  4,513  3,637  5,174 
Adjusted total assets3 44,064  46,849  32,311  34,285  34,684 
Ratio
Adjusted ROA4 16.36% 39.85% 13.97% 10.61% 14.92%

2017 Calculations

1 ROA = 100 × Net earnings attributable to Altria Group, Inc. ÷ Total assets
= 100 × 10,222 ÷ 43,202 = 23.66%

2 Adjusted comprehensive earnings. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted comprehensive earnings ÷ Adjusted total assets
= 100 × 7,211 ÷ 44,064 = 16.36%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Altria Group Inc.'s adjusted ROA improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level.