Stock Analysis on Net
Stock Analysis on Net

Altria Group Inc. (NYSE:MO)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Altria Group Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 — = 21.08% × —
Sep 30, 2023 — = 24.02% × —
Jun 30, 2023 — = 18.35% × —
Mar 31, 2023 — = 15.18% × —
Dec 31, 2022 — = 15.60% × —
Sep 30, 2022 — = 13.84% × —
Jun 30, 2022 — = 4.77% × —
Mar 31, 2022 — = 7.48% × —
Dec 31, 2021 — = 6.26% × —
Sep 30, 2021 — = 7.01% × —
Jun 30, 2021 139.55% = 10.24% × 13.63
Mar 31, 2021 148.95% = 8.90% × 16.74
Dec 31, 2020 157.34% = 9.42% × 16.70
Sep 30, 2020 23.38% = 1.57% × 14.86
Jun 30, 2020 -16.07% = -1.82% × 8.83
Mar 31, 2020 -13.16% = -1.64% × 8.04
Dec 31, 2019 -20.78% = -2.62% × 7.92
Sep 30, 2019 — = — × 5.02
Jun 30, 2019 — = — × 3.98
Mar 31, 2019 — = — × 4.21

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Three-Component Disaggregation of ROE

Altria Group Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 — = 33.21% × 0.63 × —
Sep 30, 2023 — = 35.58% × 0.68 × —
Jun 30, 2023 — = 27.39% × 0.67 × —
Mar 31, 2023 — = 22.44% × 0.68 × —
Dec 31, 2022 — = 22.97% × 0.68 × —
Sep 30, 2022 — = 18.61% × 0.74 × —
Jun 30, 2022 — = 6.88% × 0.69 × —
Mar 31, 2022 — = 11.64% × 0.64 × —
Dec 31, 2021 — = 9.51% × 0.66 × —
Sep 30, 2021 — = 10.65% × 0.66 × —
Jun 30, 2021 139.55% = 17.22% × 0.59 × 13.63
Mar 31, 2021 148.95% = 16.80% × 0.53 × 16.74
Dec 31, 2020 157.34% = 17.08% × 0.55 × 16.70
Sep 30, 2020 23.38% = 2.84% × 0.55 × 14.86
Jun 30, 2020 -16.07% = -3.57% × 0.51 × 8.83
Mar 31, 2020 -13.16% = -3.33% × 0.49 × 8.04
Dec 31, 2019 -20.78% = -5.15% × 0.51 × 7.92
Sep 30, 2019 — = — × — × 5.02
Jun 30, 2019 — = — × — × 3.98
Mar 31, 2019 — = — × — × 4.21

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Two-Component Disaggregation of ROA

Altria Group Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 21.08% = 33.21% × 0.63
Sep 30, 2023 24.02% = 35.58% × 0.68
Jun 30, 2023 18.35% = 27.39% × 0.67
Mar 31, 2023 15.18% = 22.44% × 0.68
Dec 31, 2022 15.60% = 22.97% × 0.68
Sep 30, 2022 13.84% = 18.61% × 0.74
Jun 30, 2022 4.77% = 6.88% × 0.69
Mar 31, 2022 7.48% = 11.64% × 0.64
Dec 31, 2021 6.26% = 9.51% × 0.66
Sep 30, 2021 7.01% = 10.65% × 0.66
Jun 30, 2021 10.24% = 17.22% × 0.59
Mar 31, 2021 8.90% = 16.80% × 0.53
Dec 31, 2020 9.42% = 17.08% × 0.55
Sep 30, 2020 1.57% = 2.84% × 0.55
Jun 30, 2020 -1.82% = -3.57% × 0.51
Mar 31, 2020 -1.64% = -3.33% × 0.49
Dec 31, 2019 -2.62% = -5.15% × 0.51
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in profitability measured by net profit margin ratio.