Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Altria Group Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
- Debt to Equity Ratio
- The debt to equity ratio demonstrated an increasing trend from March 31, 2020 (4.58) through December 31, 2020 (10.38) before slightly decreasing to 8.67 by June 30, 2021. Data beyond this period is not provided, which limits further assessment. The initial increase suggests a significant rise in debt relative to equity during 2020, followed by a moderate improvement in mid-2021.
- Debt to Capital Ratio
- The debt to capital ratio remained consistently high throughout the observed periods, starting at 0.82 in March 2020 and slightly increasing to 0.91 by March 2021. Subsequently, the ratio fluctuated around values exceeding 1.0 from September 2021 onward, peaking at 1.26 in June 2024. This indicates a strong reliance on debt financing relative to the total capital base, with a tendency towards increased leverage over time, especially from late 2021 through mid-2024.
- Debt to Assets Ratio
- This ratio showed a generally upward trend across the periods. Beginning at 0.57 in March 2020, it increased to approximately 0.61 by March 2021, and further rose to fluctuate around 0.69 to 0.77 in subsequent quarters. Notably, the ratio peaked near 0.77 in September 2022 before slightly decreasing and stabilizing around 0.69 to 0.74 toward the latest quarters. This pattern indicates a growing proportion of assets financed by debt over the analyzed period.
- Financial Leverage
- Financial leverage followed a notable increasing trajectory in the early periods, moving from 8.04 in March 2020 to 16.7 by December 31, 2020, and remaining elevated at 16.74 in March 2021. A decrease to 13.63 by June 2021 suggests some deleveraging; however, lack of data beyond mid-2021 restricts further evaluation. This pattern reflects significant leveraging activity during 2020 with some reduction thereafter.
Debt Ratios
Debt to Equity
Altria Group Inc., debt to equity calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 2,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 3,000) | ||||||
| Current portion of long-term debt | 1,585) | 1,553) | —) | 1,121) | 1,121) | 1,121) | 1,339) | 1,556) | 1,443) | 2,634) | 2,517) | 1,105) | 1,105) | —) | 1,500) | 1,500) | 1,500) | 1,500) | —) | ||||||
| Long-term debt, excluding current portion | 23,570) | 23,470) | 25,042) | 25,112) | 23,977) | 24,074) | 24,048) | 25,124) | 24,848) | 25,046) | 25,405) | 26,939) | 27,022) | 28,241) | 28,180) | 27,971) | 27,755) | 27,542) | 26,971) | ||||||
| Total debt | 25,155) | 25,023) | 25,042) | 26,233) | 25,098) | 27,195) | 25,387) | 26,680) | 26,291) | 27,680) | 27,922) | 28,044) | 28,127) | 28,241) | 29,680) | 29,471) | 29,255) | 29,042) | 29,971) | ||||||
| Stockholders’ equity (deficit) attributable to Altria | (3,468) | (3,016) | (5,114) | (3,540) | (3,407) | (3,827) | (3,876) | (3,973) | (4,232) | (2,403) | (1,760) | (1,606) | (1,267) | 3,257) | 2,913) | 2,839) | 3,139) | 5,688) | 6,543) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to equity1 | — | — | — | — | — | — | — | — | — | — | — | — | — | 8.67 | 10.19 | 10.38 | 9.32 | 5.11 | 4.58 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 1.74 | 1.69 | 1.61 | 1.62 | 1.53 | 1.60 | 1.68 | 1.62 | 1.74 | 1.82 | 1.68 | 1.86 | 1.88 | 1.89 | 2.21 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.71 | 0.71 | 0.67 | 0.69 | 0.70 | 0.74 | 0.79 | 0.85 | 0.81 | 0.70 | 0.70 | 0.69 | 0.72 | 0.69 | 0.72 | — | — | — | — | ||||||
| PepsiCo Inc. | 2.31 | 2.31 | 2.41 | 2.38 | 2.38 | 2.47 | 2.45 | 2.28 | 2.07 | 2.12 | 2.20 | 2.51 | 2.60 | 2.76 | 3.13 | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity (deficit) attributable to Altria
= 25,155 ÷ -3,468 = —
2 Click competitor name to see calculations.
- Total Debt
- Over the observed periods, total debt demonstrates a generally declining trend from approximately $29.97 billion at the end of Q1 2020 to around $25.16 billion by Q3 2024. The debt peaked briefly in early 2021 with values near $29.68 billion, followed by a gradual decrease with minor fluctuations through subsequent quarters. Despite some variability, the overall pattern indicates a consistent effort toward debt reduction.
- Stockholders’ Equity Attributable to Altria
- Stockholders’ equity shows considerable volatility, with a notable decline observed during 2020 and 2021. Initially, equity was approximately $6.54 billion at Q1 2020 but dropped sharply, reaching negative values starting in Q3 2021. This negative equity situation persists with fluctuations through to the latest periods, hitting around -$3.47 billion by Q3 2024. These negative values suggest a continuing deficit position in the company’s equity attributable to shareholders over recent years.
- Debt to Equity Ratio
- The debt to equity ratio, available for early 2020 and 2021 periods, indicates significant financial leverage challenges. The ratio increased sharply from 4.58 in Q1 2020 to 10.38 at Q4 2020, reflecting the decrease in equity combined with relatively stable or increased debt levels. A decline to 8.67 in mid-2021 suggests some improvement in leverage but remains at high levels. Data for subsequent periods is missing, but given the sustained negative equity, the ratio likely remains elevated beyond the last reported figures.
- Overall Financial Insights
- The combination of a gradual reduction in total debt and persistent negative stockholders’ equity indicates financial stress impacting equity values more severely than debt levels. The sharp decline and sustained negative equity suggest potential challenges in generating retained earnings or absorbing losses, which may affect the company's solvency and financial stability. The elevated debt to equity ratio during earlier periods confirms high leverage use, increasing financial risk.
Debt to Capital
Altria Group Inc., debt to capital calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 2,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 3,000) | ||||||
| Current portion of long-term debt | 1,585) | 1,553) | —) | 1,121) | 1,121) | 1,121) | 1,339) | 1,556) | 1,443) | 2,634) | 2,517) | 1,105) | 1,105) | —) | 1,500) | 1,500) | 1,500) | 1,500) | —) | ||||||
| Long-term debt, excluding current portion | 23,570) | 23,470) | 25,042) | 25,112) | 23,977) | 24,074) | 24,048) | 25,124) | 24,848) | 25,046) | 25,405) | 26,939) | 27,022) | 28,241) | 28,180) | 27,971) | 27,755) | 27,542) | 26,971) | ||||||
| Total debt | 25,155) | 25,023) | 25,042) | 26,233) | 25,098) | 27,195) | 25,387) | 26,680) | 26,291) | 27,680) | 27,922) | 28,044) | 28,127) | 28,241) | 29,680) | 29,471) | 29,255) | 29,042) | 29,971) | ||||||
| Stockholders’ equity (deficit) attributable to Altria | (3,468) | (3,016) | (5,114) | (3,540) | (3,407) | (3,827) | (3,876) | (3,973) | (4,232) | (2,403) | (1,760) | (1,606) | (1,267) | 3,257) | 2,913) | 2,839) | 3,139) | 5,688) | 6,543) | ||||||
| Total capital | 21,687) | 22,007) | 19,928) | 22,693) | 21,691) | 23,368) | 21,511) | 22,707) | 22,059) | 25,277) | 26,162) | 26,438) | 26,860) | 31,498) | 32,593) | 32,310) | 32,394) | 34,730) | 36,514) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to capital1 | 1.16 | 1.14 | 1.26 | 1.16 | 1.16 | 1.16 | 1.18 | 1.17 | 1.19 | 1.10 | 1.07 | 1.06 | 1.05 | 0.90 | 0.91 | 0.91 | 0.90 | 0.84 | 0.82 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 0.64 | 0.63 | 0.62 | 0.62 | 0.60 | 0.62 | 0.63 | 0.62 | 0.63 | 0.65 | 0.63 | 0.65 | 0.65 | 0.65 | 0.69 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.42 | 0.42 | 0.40 | 0.41 | 0.41 | 0.43 | 0.44 | 0.46 | 0.45 | 0.41 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | — | — | — | — | ||||||
| PepsiCo Inc. | 0.70 | 0.70 | 0.71 | 0.70 | 0.70 | 0.71 | 0.71 | 0.69 | 0.67 | 0.68 | 0.69 | 0.72 | 0.72 | 0.73 | 0.76 | — | — | — | — | ||||||
| Philip Morris International Inc. | 1.25 | 1.25 | 1.26 | 1.31 | 1.25 | 1.25 | 1.23 | 1.26 | 1.51 | 1.48 | 1.52 | 1.57 | 1.57 | 1.62 | 1.65 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 25,155 ÷ 21,687 = 1.16
2 Click competitor name to see calculations.
The presented financial data illustrates the trends in total debt, total capital, and the debt to capital ratio for the analyzed company over a series of quarterly periods from March 2020 to September 2024.
- Total debt
-
Total debt exhibits a general declining trend across the observed timeframe. Beginning at approximately $29,971 million in March 2020, the total debt gradually decreases with some fluctuations, reaching about $25,155 million by September 2024. There is a noticeable reduction between early 2022 and late 2023, followed by a relatively stable period with minor variations.
- Total capital
-
Total capital also demonstrates a downward movement over the quarters. Starting at roughly $36,514 million in the first quarter of 2020, it decreases substantially, especially between mid-2021 and mid-2022, where a sharp decline is observed. From that point onwards, the total capital remains somewhat stable with slight fluctuations, ending around $21,687 million in the third quarter of 2024.
- Debt to capital ratio
-
The debt to capital ratio, which measures the proportion of debt used relative to the company's capital, shows an increasing trend over the period under review. Beginning at 0.82 in March 2020, the ratio rises steadily and exceeds 1.0 by late 2021, indicating that total debt surpasses total capital from that point forward. The ratio peaks around 1.26 in mid-2024 before slightly declining but remaining above 1.0, suggesting sustained reliance on debt financing in comparison to capital.
Overall, the data reveals a strategy characterized by reducing both total debt and total capital, yet with a proportionally higher decrease in capital. This dynamic results in an increasing debt to capital ratio, signaling a growing leverage and potential heightened financial risk. The persistence of the ratio above 1.0 for several quarters highlights the significance of debt in the company’s capital structure during the recent periods.
Debt to Assets
Altria Group Inc., debt to assets calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 2,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 3,000) | ||||||
| Current portion of long-term debt | 1,585) | 1,553) | —) | 1,121) | 1,121) | 1,121) | 1,339) | 1,556) | 1,443) | 2,634) | 2,517) | 1,105) | 1,105) | —) | 1,500) | 1,500) | 1,500) | 1,500) | —) | ||||||
| Long-term debt, excluding current portion | 23,570) | 23,470) | 25,042) | 25,112) | 23,977) | 24,074) | 24,048) | 25,124) | 24,848) | 25,046) | 25,405) | 26,939) | 27,022) | 28,241) | 28,180) | 27,971) | 27,755) | 27,542) | 26,971) | ||||||
| Total debt | 25,155) | 25,023) | 25,042) | 26,233) | 25,098) | 27,195) | 25,387) | 26,680) | 26,291) | 27,680) | 27,922) | 28,044) | 28,127) | 28,241) | 29,680) | 29,471) | 29,255) | 29,042) | 29,971) | ||||||
| Total assets | 34,167) | 34,387) | 36,475) | 38,570) | 36,469) | 37,151) | 36,826) | 36,954) | 33,953) | 36,746) | 40,235) | 39,523) | 39,564) | 44,388) | 48,776) | 47,414) | 46,651) | 50,200) | 52,618) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Debt to assets1 | 0.74 | 0.73 | 0.69 | 0.68 | 0.69 | 0.73 | 0.69 | 0.72 | 0.77 | 0.75 | 0.69 | 0.71 | 0.71 | 0.64 | 0.61 | 0.62 | 0.63 | 0.58 | 0.57 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 0.44 | 0.43 | 0.43 | 0.43 | 0.41 | 0.42 | 0.44 | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.46 | 0.47 | 0.50 | — | — | — | — | ||||||
| Mondelēz International Inc. | 0.27 | 0.27 | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.32 | 0.32 | 0.29 | 0.29 | 0.29 | 0.30 | 0.29 | 0.29 | — | — | — | — | ||||||
| PepsiCo Inc. | 0.45 | 0.45 | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.42 | 0.42 | 0.42 | 0.43 | 0.44 | 0.44 | 0.46 | 0.48 | — | — | — | — | ||||||
| Philip Morris International Inc. | 0.74 | 0.75 | 0.77 | 0.73 | 0.76 | 0.77 | 0.76 | 0.70 | 0.67 | 0.68 | 0.70 | 0.67 | 0.70 | 0.72 | 0.74 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 25,155 ÷ 34,167 = 0.74
2 Click competitor name to see calculations.
- Total Debt
- The total debt shows a general downward trend over the periods analyzed, starting at approximately $29.97 billion and declining to around $25.16 billion. There are fluctuations within this trend, with some quarters showing slight increases, notably in the latter part of 2023 and early 2024, but the overall direction indicates a gradual reduction in total debt levels.
- Total Assets
- Total assets display a noticeable declining pattern from the beginning of the period, close to $52.6 billion, to about $34.2 billion by the end. While there are minor recoveries or stable phases, especially around late 2021 and early 2023, the predominant trend is a significant contraction of total assets over the timeframe.
- Debt to Assets Ratio
- The debt to assets ratio reveals increasing leverage from 0.57 initially to a peak near 0.77 in late 2022, followed by a slight decrease and stabilization in the 0.68 to 0.74 range through early 2024. This pattern suggests that despite the reduction in absolute debt, the faster decline in total assets has resulted in a relatively higher leverage position for the company in recent periods.
- Overall Analysis
- The company’s financial structure indicates a strategic reduction in debt but accompanied by a more significant decline in asset base, which leads to a heightened debt-to-assets ratio. The increasing leverage ratio points to a potential increase in financial risk, considering the diminishing asset coverage for the existing debt. Monitoring the balance between debt management and asset preservation will be critical moving forward to ensure financial stability.
Financial Leverage
Altria Group Inc., financial leverage calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Total assets | 34,167) | 34,387) | 36,475) | 38,570) | 36,469) | 37,151) | 36,826) | 36,954) | 33,953) | 36,746) | 40,235) | 39,523) | 39,564) | 44,388) | 48,776) | 47,414) | 46,651) | 50,200) | 52,618) | ||||||
| Stockholders’ equity (deficit) attributable to Altria | (3,468) | (3,016) | (5,114) | (3,540) | (3,407) | (3,827) | (3,876) | (3,973) | (4,232) | (2,403) | (1,760) | (1,606) | (1,267) | 3,257) | 2,913) | 2,839) | 3,139) | 5,688) | 6,543) | ||||||
| Solvency Ratio | |||||||||||||||||||||||||
| Financial leverage1 | — | — | — | — | — | — | — | — | — | — | — | — | — | 13.63 | 16.74 | 16.70 | 14.86 | 8.83 | 8.04 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | 4.01 | 3.91 | 3.76 | 3.77 | 3.71 | 3.78 | 3.86 | 3.85 | 4.05 | 4.05 | 3.79 | 4.10 | 4.09 | 4.05 | 4.42 | — | — | — | — | ||||||
| Mondelēz International Inc. | 2.59 | 2.64 | 2.73 | 2.52 | 2.48 | 2.51 | 2.58 | 2.65 | 2.55 | 2.40 | 2.41 | 2.37 | 2.43 | 2.41 | 2.45 | — | — | — | — | ||||||
| PepsiCo Inc. | 5.17 | 5.12 | 5.25 | 5.43 | 5.31 | 5.42 | 5.46 | 5.38 | 4.98 | 5.02 | 5.11 | 5.76 | 5.88 | 6.04 | 6.54 | — | — | — | — | ||||||
| Philip Morris International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 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).
1 Q3 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity (deficit) attributable to Altria
= 34,167 ÷ -3,468 = —
2 Click competitor name to see calculations.
- Total Assets
- The total assets exhibited a downward trend from March 31, 2020, to September 30, 2022, decreasing from approximately $52.6 billion to about $33.9 billion. Following this decline, there was a modest recovery observed toward the end of 2022 and into 2023, with total assets increasing to approximately $38.6 billion by December 31, 2023. Afterward, a gradual decrease resumed, reaching roughly $34.2 billion by September 30, 2024.
- Stockholders' Equity Attributable to Altria
- The stockholders' equity showed considerable volatility over the entire period. Initially, equity was positive but declined substantially from $6.5 billion at the end of Q1 2020 to nearly $3.1 billion by Q3 2020, followed by further decreases fluctuating into negative territory in Q3 2021. Negative equity persisted through the subsequent quarters, with the lowest point around negative $4.2 billion at Q3 2022. Some recovery was noticed in late 2022 and throughout 2023, with values improving though remaining negative, hovering around negative $3.4 billion by September 2024. This sustained negative equity indicates persistent challenges in maintaining positive net assets attributable to the company.
- Financial Leverage
- Financial leverage exhibited significant variation from the beginning of the recorded period. Starting at 8.04 times in Q1 2020, the ratio increased sharply to 16.7 times by Q4 2020. The highest recorded leverage occurred around Q1 2021 at 16.74 times before decreasing to roughly 13.63 times by Q2 2021. Data for financial leverage was not available beyond mid-2021, preventing further detailed trend analysis. The initial increase suggests heightened reliance on debt or liabilities relative to equity during the early period.
- Overall Insights
- The data reveal that the company faced declining asset values and deteriorating equity positions from early 2020 through much of 2022, indicative of financial pressures or asset impairments. Despite some stabilization and partial recovery in asset values and equity in late 2022 and 2023, equity remained negative, pointing to ongoing capital structure and solvency issues. The high financial leverage ratios during 2020 and 2021 suggest that the company was operating with a substantial level of debt compared to equity, which may accentuate financial risk. The reduction in total assets alongside negative equity suggests a challenging financial environment, possibly requiring strategic financial management to restore balance sheet strength.