Microsoft Excel LibreOffice Calc

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Return on Sales
Gross profit margin 48.31% 46.73% 45.02% 43.70% 41.43%
Operating profit margin 35.94% 37.36% 34.04% 32.87% 31.07%
Net profit margin 27.45% 39.97% 55.31% 20.61% 20.68%
Return on Investment
Return on equity (ROE) 47.09% 66.48% 111.50% 181.98% 168.21%
Return on assets (ROA) 12.51% 23.66% 31.00% 16.11% 14.71%

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ 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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ 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 9.68% 13.53% 12.76% 11.70% 10.63%

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ 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% 9.60% 10.51% 9.11% 7.86%

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ 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 22.20% 24.66% 28.02% 24.45% 25.80%

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ 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 5.10% 5.95% 6.83% 6.19% 6.15%

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.