Altria Group Inc. (MO)
Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Altria Group Inc., profitability ratios
Based on: 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), 10-K (filing date: 2015-02-25).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Altria Group Inc.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Altria Group Inc.’s operating profit margin ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Altria Group Inc.’s net profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Altria Group Inc.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Altria Group Inc.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018. |
Gross Profit Margin
Altria Group Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 12,254 | 11,951 | 11,591 | 11,114 | 10,160 | |
| Net revenues | 25,364 | 25,576 | 25,744 | 25,434 | 24,522 | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 48.31% | 46.73% | 45.02% | 43.70% | 41.43% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Philip Morris International Inc. | 23.64% | 23.45% | 23.07% | 23.58% | 24.13% | |
Based on: 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), 10-K (filing date: 2015-02-25).
1 2018 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 12,254 ÷ 25,364 = 48.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Altria Group Inc.’s gross profit margin ratio improved from 2016 to 2017 and from 2017 to 2018. |
Operating Profit Margin
Altria Group Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 9,115 | 9,556 | 8,762 | 8,361 | 7,620 | |
| Net revenues | 25,364 | 25,576 | 25,744 | 25,434 | 24,522 | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 35.94% | 37.36% | 34.04% | 32.87% | 31.07% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Philip Morris International Inc. | 14.25% | 14.73% | 14.43% | 14.37% | 14.61% | |
| Operating Profit Margin, Sector | ||||||
| Tobacco | 19.48% | 20.31% | 19.44% | 19.11% | — | |
| Operating Profit Margin, Industry | ||||||
| Consumer Goods | 9.64% | 13.47% | 12.70% | 11.75% | — | |
Based on: 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), 10-K (filing date: 2015-02-25).
1 2018 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 9,115 ÷ 25,364 = 35.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Altria Group Inc.’s operating profit margin ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018. |
Net Profit Margin
Altria Group Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Altria | 6,963 | 10,222 | 14,239 | 5,241 | 5,070 | |
| Net revenues | 25,364 | 25,576 | 25,744 | 25,434 | 24,522 | |
| Profitability Ratio | ||||||
| Net profit margin1 | 27.45% | 39.97% | 55.31% | 20.61% | 20.68% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Philip Morris International Inc. | 9.91% | 7.73% | 9.30% | 9.30% | 9.35% | |
| Net Profit Margin, Sector | ||||||
| Tobacco | 14.14% | 15.68% | 21.06% | 12.19% | — | |
| Net Profit Margin, Industry | ||||||
| Consumer Goods | 8.06% | 9.60% | 10.50% | 9.18% | — | |
Based on: 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), 10-K (filing date: 2015-02-25).
1 2018 Calculation
Net profit margin = 100 × Net earnings attributable to Altria ÷ Net revenues
= 100 × 6,963 ÷ 25,364 = 27.45%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Altria Group Inc.’s net profit margin ratio deteriorated from 2016 to 2017 and from 2017 to 2018. |
Return on Equity (ROE)
Altria Group Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Altria | 6,963 | 10,222 | 14,239 | 5,241 | 5,070 | |
| Stockholders’ equity attributable to Altria | 14,787 | 15,377 | 12,770 | 2,880 | 3,014 | |
| Profitability Ratio | ||||||
| ROE1 | 47.09% | 66.48% | 111.50% | 181.98% | 168.21% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Philip Morris International Inc. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Tobacco | 638.92% | 493.98% | 25,860.98% | — | — | |
| ROE, Industry | ||||||
| Consumer Goods | 21.92% | 24.50% | 27.94% | 24.53% | — | |
Based on: 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), 10-K (filing date: 2015-02-25).
1 2018 Calculation
ROE = 100 × Net earnings attributable to Altria ÷ Stockholders’ equity attributable to Altria
= 100 × 6,963 ÷ 14,787 = 47.09%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Altria Group Inc.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018. |
Return on Assets (ROA)
Altria Group Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings attributable to Altria | 6,963 | 10,222 | 14,239 | 5,241 | 5,070 | |
| Total assets | 55,638 | 43,202 | 45,932 | 32,535 | 34,475 | |
| Profitability Ratio | ||||||
| ROA1 | 12.51% | 23.66% | 31.00% | 16.11% | 14.71% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Philip Morris International Inc. | 19.88% | 14.05% | 18.91% | 20.24% | 21.29% | |
| ROA, Sector | ||||||
| Tobacco | 15.58% | 18.87% | 25.62% | 18.22% | — | |
| ROA, Industry | ||||||
| Consumer Goods | 5.09% | 5.97% | 6.85% | 6.26% | — | |
Based on: 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), 10-K (filing date: 2015-02-25).
1 2018 Calculation
ROA = 100 × Net earnings attributable to Altria ÷ Total assets
= 100 × 6,963 ÷ 55,638 = 12.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Altria Group Inc.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018. |