Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Altria Group Inc., profitability ratios

	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%

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.

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 (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%

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.

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 (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%

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.

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 (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%

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.

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 (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%

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.

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 (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%

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.

Altria Group Inc. (MO)

Profitability Analysis