Altria Group Inc. (MO)
Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
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).
| 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 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 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 deteriorated from 2016 to 2017 and from 2017 to 2018. |
| 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 | |
| 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.
| 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 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 | |
| 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% | 18.47% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Goods | 9.78% | 13.54% | 12.78% | 11.75% | 10.72% | |
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.
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Altria Group Inc.’s operating profit margin 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 | |
| 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% | 12.01% | |
| Net Profit Margin, Industry | ||||||
| Consumer Goods | 8.18% | 9.62% | 10.50% | 9.13% | 7.91% | |
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.
| 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 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 | |
| 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 | 22.22% | 24.72% | 28.06% | 24.52% | 25.89% | |
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.
| 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 | |
| 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% | 18.03% | |
| ROA, Industry | ||||||
| Consumer Goods | 5.14% | 6.00% | 6.87% | 6.24% | 6.23% | |
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.
| 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. |