Stock Analysis on Net
Stock Analysis on Net
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Altria Group Inc. (NYSE:MO)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Altria Group Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.51 0.46 0.59 0.56 0.78
Adjusted 0.50 0.45 0.58 0.55 0.79
Liquidity Ratio
Current Ratio
Reported 0.59 0.20 0.64 0.98 0.86
Adjusted 0.66 0.24 0.74 1.08 0.79
Solvency Ratios
Debt to Equity
Reported 4.51 1.74 0.90 1.09 4.49
Adjusted 2.34 1.26 0.66 0.65 1.67
Debt to Capital
Reported 0.82 0.64 0.47 0.52 0.82
Adjusted 0.70 0.56 0.40 0.39 0.62
Financial Leverage
Reported 7.92 3.76 2.81 3.60 11.30
Adjusted 4.14 2.74 2.08 2.16 4.09
Profitability Ratios
Net Profit Margin
Reported -5.15% 27.45% 39.97% 55.31% 20.61%
Adjusted -7.56% 26.77% 28.19% 72.52% 17.74%
Return on Equity (ROE)
Reported -20.78% 47.09% 66.48% 111.50% 181.98%
Adjusted -15.75% 32.99% 34.07% 86.22% 57.09%
Return on Assets (ROA)
Reported -2.62% 12.51% 23.66% 31.00% 16.11%
Adjusted -3.81% 12.02% 16.36% 39.85% 13.97%

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 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 current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted 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 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 deteriorated from 2017 to 2018 and from 2018 to 2019.
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 deteriorated from 2017 to 2018 and 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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Altria Group Inc.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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 Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
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
Selected Financial Data (US$ in millions)
Net revenues 25,110  25,364  25,576  25,744  25,434 
Adjusted total assets2 49,871  56,498  44,064  46,849  32,311 
Activity Ratio
Adjusted total asset turnover3 0.50 0.45 0.58 0.55 0.79

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).

1 2019 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 25,110 ÷ 49,271 = 0.51

2 Adjusted total assets. See details »

3 2019 Calculation
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 Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
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
Selected Financial Data (US$ in millions)
Adjusted current assets2 5,424  4,999  5,044  7,960  5,611 
Current liabilities 8,174  21,193  6,792  7,375  7,078 
Liquidity Ratio
Adjusted current ratio3 0.66 0.24 0.74 1.08 0.79

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).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,824 ÷ 8,174 = 0.59

2 Adjusted current assets. See details »

3 2019 Calculation
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 adjusted 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 Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 28,042  25,746  13,894  13,881  12,919 
Stockholders’ equity attributable to Altria 6,222  14,787  15,377  12,770  2,880 
Solvency Ratio
Debt to equity1 4.51 1.74 0.90 1.09 4.49
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 28,221  25,906  14,056  14,098  13,170 
Adjusted total stockholders’ equity3 12,047  20,584  21,163  21,654  7,905 
Solvency Ratio
Adjusted debt to equity4 2.34 1.26 0.66 0.65 1.67

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).

1 2019 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity attributable to Altria
= 28,042 ÷ 6,222 = 4.51

2 Adjusted total debt. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total stockholders’ equity
= 28,221 ÷ 12,047 = 2.34

Solvency 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 deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 28,042  25,746  13,894  13,881  12,919 
Total capital 34,264  40,533  29,271  26,651  15,799 
Solvency Ratio
Debt to capital1 0.82 0.64 0.47 0.52 0.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 28,221  25,906  14,056  14,098  13,170 
Adjusted total capital3 40,268  46,490  35,219  35,752  21,075 
Solvency Ratio
Adjusted debt to capital4 0.70 0.56 0.40 0.39 0.62

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).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 28,042 ÷ 34,264 = 0.82

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 28,221 ÷ 40,268 = 0.70

Solvency 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 deteriorated from 2017 to 2018 and 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
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
Selected Financial Data (US$ in millions)
Adjusted total assets2 49,871  56,498  44,064  46,849  32,311 
Adjusted total stockholders’ equity3 12,047  20,584  21,163  21,654  7,905 
Solvency Ratio
Adjusted financial leverage4 4.14 2.74 2.08 2.16 4.09

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).

1 2019 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity attributable to Altria
= 49,271 ÷ 6,222 = 7.92

2 Adjusted total assets. See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total stockholders’ equity
= 49,871 ÷ 12,047 = 4.14

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 Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
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
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses)2 (1,898) 6,790  7,211  18,670  4,513 
Net revenues 25,110  25,364  25,576  25,744  25,434 
Profitability Ratio
Adjusted net profit margin3 -7.56% 26.77% 28.19% 72.52% 17.74%

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).

1 2019 Calculation
Net profit margin = 100 × Net earnings (losses) attributable to Altria ÷ Net revenues
= 100 × -1,293 ÷ 25,110 = -5.15%

2 Adjusted net earnings (losses). See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (losses) ÷ Net revenues
= 100 × -1,898 ÷ 25,110 = -7.56%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Altria Group Inc.’s adjusted net profit margin ratio deteriorated 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
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
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses)2 (1,898) 6,790  7,211  18,670  4,513 
Adjusted total stockholders’ equity3 12,047  20,584  21,163  21,654  7,905 
Profitability Ratio
Adjusted ROE4 -15.75% 32.99% 34.07% 86.22% 57.09%

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).

1 2019 Calculation
ROE = 100 × Net earnings (losses) attributable to Altria ÷ Stockholders’ equity attributable to Altria
= 100 × -1,293 ÷ 6,222 = -20.78%

2 Adjusted net earnings (losses). See details »

3 Adjusted total stockholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings (losses) ÷ Adjusted total stockholders’ equity
= 100 × -1,898 ÷ 12,047 = -15.75%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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
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
Selected Financial Data (US$ in millions)
Adjusted net earnings (losses)2 (1,898) 6,790  7,211  18,670  4,513 
Adjusted total assets3 49,871  56,498  44,064  46,849  32,311 
Profitability Ratio
Adjusted ROA4 -3.81% 12.02% 16.36% 39.85% 13.97%

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).

1 2019 Calculation
ROA = 100 × Net earnings (losses) attributable to Altria ÷ Total assets
= 100 × -1,293 ÷ 49,271 = -2.62%

2 Adjusted net earnings (losses). See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings (losses) ÷ Adjusted total assets
= 100 × -1,898 ÷ 49,871 = -3.81%

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.