Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Altria Group Inc., short-term (operating) activity 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).
- Inventory Turnover
- The inventory turnover ratio experienced variability over the observed periods. It started at 3.83 in early 2020, rose to a peak of 6.41 by the third quarter of 2021, before stabilizing around the mid-to-high 5s. Recently, there has been a slight upward trend, reaching 5.54 by the third quarter of 2024. This indicates a general improvement in inventory management efficiency over time, with faster inventory cycles compared to the earlier periods.
- Receivables Turnover
- The receivables turnover ratio shows high volatility. Values surged dramatically to a peak of approximately 724 in the third quarter of 2021, a significant anomaly relative to other periods, which typically ranged between about 170 and 600. After this peak, the ratio decreased steadily and settled into a declining trend, reaching 276 by the third quarter of 2024. This pattern suggests intermittent fluctuations in collection efficiency with a general downward trajectory in recent years, possibly reflecting changes in credit policies or customer payment behavior.
- Payables Turnover
- Payables turnover displayed cyclical behavior with a notable downward trend from 27.63 in the first quarter of 2020 to around 11-12 in the most recent periods of 2024. This decline implies the company is taking longer to settle its payables, increasing the average payment period. A significant drop was observed after 2021, indicating a strategic or operational shift in managing supplier payments.
- Average Inventory Processing Period
- The average inventory processing period closely mirrors the inventory turnover trend inversely. Starting at 95 days in early 2020, it improved significantly to as low as 57 days by the third quarter of 2021. Subsequently, it increased again, fluctuating between 66 and 73 days in recent quarters. This reflects variability in how quickly inventory is processed, with an overall increase in recent periods suggesting slower turnover compared to the 2021 low point.
- Average Receivable Collection Period
- The receivable collection period remained consistently low around 1 to 2 days throughout the entire timeframe. This stability indicates efficient collection processes, with minimal days on average from receivables conversion to cash receipt.
- Operating Cycle
- The operating cycle shows a trend strongly influenced by inventory processing and receivables collection periods. It decreased to a low point of 58 days in Q3 2021 before rising to the low 70s in subsequent periods. The relative stability of the receivables collection period suggests that fluctuations in the operating cycle are primarily driven by changes in inventory management and payment periods.
- Average Payables Payment Period
- This metric increased notably over time, starting around 13 days in early 2020, reaching above 30 days by 2023 and maintaining that level through the first half of 2024. The lengthening of this period indicates that the company is delaying payments to suppliers, likely improving short-term liquidity but potentially impacting supplier relationships.
- Cash Conversion Cycle
- The cash conversion cycle exhibits a general decreasing trend from the mid-80s days in early 2020 down to the mid-30s by 2024. A notable reduction occurred after 2021, correlating with shorter operating and processing cycles. This contraction suggests enhanced efficiency in managing working capital, with faster conversion of investments in inventory and receivables back into cash.
Turnover Ratios
Average No. Days
Inventory Turnover
Altria Group Inc., inventory turnover 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) | |||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Inventory turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The cost of sales demonstrates a fluctuating yet overall declining pattern from early 2020 through late 2024. Initially, there was a decrease from $2,173 million in the first quarter of 2020 to $1,608 million by the first quarter of 2021, followed by intermittent rises and falls. Notably, the cost of sales reached a low around early 2024 at $1,437 million but increased again in the following quarters up to $1,602 million by the third quarter of 2024.
Inventories reveal a relatively stable pattern with slight fluctuations over the observation period. Starting at $2,006 million in the first quarter of 2020, inventories decreased somewhat mid-2021 to a lower point near $1,133 million in the third quarter of 2021. From that trough, inventory levels generally stabilized and slightly rose with minor variations, ending at $1,101 million in the third quarter of 2024.
The inventory turnover ratio presents an interesting trend. It began at 3.83 in the first quarter of 2020 and increased moderately to above 4.0 by mid-2020. There was a peak during the third and fourth quarters of 2021, reaching ratios above 6.0, indicating more efficient inventory use relative to cost of sales during that period. Post-2021, the ratio settled to a range between 5.0 and 5.5, showing continued relatively efficient inventory management compared to the initial period.
- Cost of Sales
- Exhibited an overall downward trend from Q1 2020 through Q1 2024 with some volatility.
- Notable declines in early 2021, with recurring increases and decreases thereafter, ending with a moderate rise in late 2024.
- Inventories
- Showed a slight downward adjustment through 2021 followed by stabilization.
- Maintained a relatively consistent level throughout 2022 to 2024, hovering near the $1.1 billion mark.
- Inventory Turnover Ratio
- Increased from below 4.0 to above 6.0 by late 2021, indicating stronger inventory efficiency.
- Subsequently stabilized between 5.0 and 5.5 through 2022 to 2024, remaining above early 2020 levels.
In summary, the data suggests that the company improved its inventory management efficiency as reflected by the rising and then stabilizing inventory turnover ratio. Cost of sales decreased notably in the early part of the timeframe but began to experience periodic increases, while inventories were managed to sustain consistent levels after initial adjustments. This pattern indicates a focus on optimizing stock levels and controlling costs relative to sales, improving operational effectiveness over the observed period.
Receivables Turnover
Altria Group Inc., receivables turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||||
| Receivables | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Receivables turnover
= (Net revenuesQ3 2024
+ Net revenuesQ2 2024
+ Net revenuesQ1 2024
+ Net revenuesQ4 2023)
÷ Receivables
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit a fluctuating pattern over the period analyzed. Starting at approximately $6.36 billion in the first quarter of 2020, revenues experienced a peak in the third quarter of 2020, reaching over $7.1 billion. Subsequently, there was a notable decline into early 2021, followed by cyclical quarter-to-quarter variations that generally trended downward. By the first quarter of 2024, net revenues had decreased to approximately $5.58 billion, which represents a substantive decline compared to the earlier peak levels. Despite some recoveries observed in mid-2024, the overall trajectory indicates shrinking revenues relative to the earlier quarters.
- Receivables
- The accounts receivable balances demonstrate modest variation over the same timeframe. The values ranged from a low of around $36 million in the third quarter of 2021 to a higher level of $147 million in the first quarter of 2020. After the dip in 2021, receivables gradually increased again, reaching approximately $87 million by the third quarter of 2024. The trend suggests fluctuations but a general upward drift in receivables in recent quarters, potentially indicating slower collections or increasing credit sales.
- Receivables Turnover
- Receivables turnover ratios show significant volatility throughout the period. Initially, turnover rates were relatively stable around 175 to 190 in early 2020. It then surged dramatically in mid-2021, reaching a peak above 700, followed by a sharp decline and sustained lower values ranging between roughly 276 and 562 in subsequent quarters. The downward trend since mid-2022 towards 276 in the third quarter of 2024 may signal a lengthening of the accounts receivable collection period, suggesting a decrease in the efficiency of converting receivables into cash.
Payables Turnover
Altria Group Inc., payables turnover calculation (quarterly data)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| 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
Payables turnover
= (Cost of salesQ3 2024
+ Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales shows a generally declining trend from early 2020 through 2024, with some fluctuations. Starting at 2,173 million US dollars in the first quarter of 2020, it decreased to a low point around the first quarter of 2022, reaching approximately 1,446 million dollars. After this period, the cost of sales fluctuates moderately, ranging between roughly 1,434 and 1,681 million dollars through late 2023, before settling near 1,536 million dollars by the third quarter of 2024. This trend indicates a reduction in direct costs associated with producing goods over the analyzed period, albeit with some short-term variability.
- Accounts Payable
- Accounts payable values display an upward trend throughout the period presented. Beginning around 278 million US dollars in the first quarter of 2020, payable amounts experienced periodic increases, reaching a notable peak of approximately 582 million dollars by the fourth quarter of 2023. There are recurring fluctuations, but overall the accounts payable balance expanded significantly, suggesting either extended payment terms, increased purchases on credit, or a combination of both.
- Payables Turnover Ratio
- The payables turnover ratio declined markedly over the timeframe. Starting from high levels above 27 at the beginning of 2020, the ratio steadily decreased, falling to around 11.96 by the third quarter of 2024. This reduction indicates a slower pace at which the company is paying off its suppliers relative to the cost of sales, consistent with the observed increase in accounts payable balances. The decline also reflects an elongation in the company’s payment cycle, potentially a strategic decision to improve working capital management or a reflection of changes in supplier relationships.
- Summary Insights
- Overall, the company’s cost of sales has declined moderately over the analyzed period while accounts payable has increased substantially, accompanied by a corresponding decrease in payables turnover. This pattern suggests that the company is managing its cash outflows by extending payment terms or delaying payments to suppliers. The reduction in the payables turnover ratio and the increase in accounts payable balances may improve short-term liquidity, but could also imply changes in supplier negotiations or credit terms that warrant monitoring for potential impacts on supply chain stability.
Working Capital Turnover
Altria Group Inc., working capital turnover 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) | |||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Working capital turnover
= (Net revenuesQ3 2024
+ Net revenuesQ2 2024
+ Net revenuesQ1 2024
+ Net revenuesQ4 2023)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit a consistently negative trend throughout the analyzed periods, indicating that current liabilities exceed current assets across all quarters. Initially, from March 2020 to December 2020, the negative working capital decreases in magnitude from -3,219 million to -1,946 million USD, suggesting a relative improvement in short-term liquidity positions. However, from March 2021 onwards, fluctuations become more pronounced, with values oscillating between -1,599 million in June 2021 and a sharp decline to -7,326 million in June 2023. The data reveals substantial volatility after mid-2022, culminating in a significant deterioration by mid-2023, followed by gradual improvements but still maintaining markedly negative figures up to September 2024.
- Net Revenues
- Net revenues demonstrate seasonal and cyclical variations but generally maintain a stable range between approximately 5,500 million and 7,100 million USD per quarter. The period from March 2020 to September 2020 shows a gradual increase from 6,359 million to 7,123 million USD, followed by a decline by December 2020 to 6,304 million USD. Throughout 2021, revenue fluctuates modestly, peaking at 6,936 million USD in June, then decreasing towards year-end. From 2022 onwards, net revenues show a downward trend, reaching a low of 5,576 million in March 2024, although there are intermittent quarterly recoveries, such as 6,209 million in June 2024 and 6,259 million in September 2024. This pattern reflects possible external market pressures or temporary disruptions impacting sales volumes or pricing power.
- Working Capital Turnover
- No data is available to analyze working capital turnover ratios, preventing assessment of how efficiently the company utilizes its working capital to generate revenue over the periods.
Average Inventory Processing Period
Altria Group Inc., average inventory processing period 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 | |||||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly inventory turnover and average inventory processing period reveals notable trends over the examined period.
- Inventory Turnover
- The inventory turnover ratio demonstrated moderate fluctuations, with values initially around 3.8 to 4.1 from early 2020 to mid-2020. A significant increase occurred in late 2021, peaking at 6.41 in September 2021, followed by a slight decline but maintaining elevated levels above 5.0 through 2024. This suggests improved efficiency in managing inventory, indicating quicker sales relative to inventory held during the more recent periods compared to the earlier ones.
- Average Inventory Processing Period
- The average inventory processing period inversely mirrors the turnover trend. Initially, it ranged from 89 to 95 days through mid-2020, indicating slower inventory movement. A sharp decrease to 57 days was noted in September 2021, corresponding with the peak in inventory turnover, implying faster turnover cycles. Subsequently, the processing period moderately increased but remained lower than early figures, fluctuating around 66 to 73 days through 2024, indicating sustained improvements in inventory management speed relative to the earlier periods.
- Overall Insights
- The data indicates a significant enhancement in inventory efficiency beginning in late 2021, with the company achieving faster turnover and reduced processing times. This trend suggests effective inventory management practices have been implemented, reducing the time inventory remains in stock and thereby potentially lowering holding costs and increasing responsiveness to market demands.
Average Receivable Collection Period
Altria Group Inc., average receivable collection period 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 | |||||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis of the financial ratios related to receivables over the observed periods reveals notable trends and changes. The receivables turnover ratio exhibits fluctuations with some periods of significant deviation, while the average receivable collection period remains relatively constant and low throughout the timeline.
- Receivables Turnover Ratio
- The receivables turnover ratio generally fluctuated within a typical range between 170 and 200 from the first quarter of 2020 through the second quarter of 2021, indicating a fairly consistent rate of receivables collection during this period. However, a sharp increase occurred in the third quarter of 2021, reaching an unusually high peak of 723.94, followed by a slight decrease yet elevated ratio of 553.47 in the fourth quarter of 2021. This spike suggests an exceptional acceleration in receivables collection during this timeframe, possibly due to extraordinary operational or financial activities.
- Subsequently, from 2022 onward, the turnover ratio stabilized somewhat but at lower levels compared to the peak in late 2021, fluctuating mostly between approximately 276 and 592. Despite these fluctuations, the overall trend from early 2023 to late 2024 points to a gradual decline in turnover ratio, descending from around 430 to approximately 276 by the third quarter of 2024. This decline may imply a slower rate of receivables collection or changes in credit sales policies or customer payment behavior.
- Average Receivable Collection Period
- The average collection period remains consistently low, varying only minimally between 1 and 2 days throughout all examined quarters. This stability indicates highly efficient collections processes and minimal changes in the typical time required to collect receivables despite the fluctuations in turnover ratio. The consistent one-day average collection period from the third quarter of 2020 onward further supports the notion of swift cash conversion.
In summary, while the average receivable collection period shows exceptional stability and efficiency, the receivables turnover ratio presents periods of both extraordinary acceleration and gradual deceleration. This mixed pattern may warrant further investigation to understand the underlying operational or market factors influencing collections, particularly the spike in 2021 and the subsequent downward trend starting in 2023.
Operating Cycle
Altria Group Inc., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||
| Coca-Cola Co. | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| PepsiCo Inc. | |||||||||||||||||||||||||
| 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
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
The financial data reveals several notable trends related to the company's operational efficiency over the analyzed periods.
- Average Inventory Processing Period
- The average inventory processing period fluctuated notably throughout the period. Starting at 95 days in the first quarter of 2020, it showed a declining trend, reaching a low of 57 days by the third quarter of 2021. This indicates an improvement in inventory turnover during this time. However, from late 2021 onward, the period gradually extended again, reaching 73 days in the second quarter of 2024 before slightly decreasing to 66 days in the latest quarter. This increase suggests some challenges in inventory management or possibly changes in product demand or supply chain dynamics towards the later periods.
- Average Receivable Collection Period
- This metric remained remarkably stable and low throughout the entire period, consistently around 1 to 2 days. This stability indicates efficient receivables management, with rapid collection processes that contribute positively to cash flow and liquidity.
- Operating Cycle
- The operating cycle, which sums the inventory processing and receivables collection periods, mirrored the trends observed in the inventory processing period due to the stability of the receivable collection period. It started at 97 days in early 2020, decreased steadily to 58 days by the third quarter of 2021, reflecting improved operational effectiveness. Following this, it trended upwards, reaching 74 days by mid-2024, signifying a lengthening in the overall operational cycle. A longer operating cycle could imply slower recovery of cash invested in operations and potential impacts on working capital management.
In summary, the company demonstrated improvements in inventory management until mid-2021, as evidenced by shorter inventory processing and operating cycle durations. However, the subsequent increases in these durations indicate a reversal of this trend, possibly due to external or internal factors affecting inventory turnover. Receivables management remained robust and consistent throughout the period. The changes in the operating cycle warrant further analysis to identify underlying causes and to evaluate potential impacts on operational efficiency and liquidity.
Average Payables Payment Period
Altria Group Inc., average payables payment period 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 | |||||||
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| Selected Financial Data | |||||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables turnover
- The payables turnover ratio demonstrates considerable fluctuation over the observed periods. Initially, the ratio was relatively high, reaching values around 27 in early 2020, indicating rapid payment of payables. However, a significant decline occurred in the latter part of 2020, dropping below 21, with the lowest value observed near 11.67 at the end of 2022. From 2023 onward, the ratio fluctuates between approximately 10 and 16, generally trending lower compared to earlier years. This trend suggests that the company is taking longer to settle its payables over time.
- Average payables payment period
- The average payables payment period shows an inverse pattern relative to the payables turnover ratio. It starts at around 13 days in early 2020, increasing steadily to reach around 18 days by the end of 2020. A pronounced increase is observed at the end of 2021 and through 2022, where the payment period rises to over 30 days, peaking at 31 days in December 2022. The period remains elevated across 2023 and into 2024, fluctuating mostly between 26 and 34 days. This indicates that the company is extending the time it takes to pay its suppliers, reflecting a slower rate of payables turnover.
- Overall trend and insights
- Over the period analyzed, the company exhibits a clear trend toward slower payment of its obligations to suppliers as evidenced by the decreasing payables turnover ratio and the increasing average payables payment period. This may reflect a strategic decision to optimize cash flows by lengthening the payment cycle or could be influenced by changing vendor terms or operational factors. The steady increase in the number of days payable outstanding suggests a shift in working capital management practices, potentially improving liquidity but also possibly impacting supplier relationships if payments are delayed excessively.
Cash Conversion Cycle
Altria Group Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||
| Mondelēz International Inc. | |||||||||||||||||||||||||
| 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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals distinct patterns in the company's working capital management over the examined periods.
- Average Inventory Processing Period
- The average inventory processing period shows considerable fluctuation. Starting at 95 days in early 2020, it gradually decreased to a low of 57 days in Q3 2021, indicating improved inventory turnover efficiency. However, following this period, there is a noticeable increase, peaking around 73 days in mid-2024, which suggests a slowdown in inventory processing efficiency towards the latest periods.
- Average Receivable Collection Period
- This metric remains consistently low and stable throughout all periods, predominantly maintaining one to two days. The consistently short receivable collection period reflects efficient credit management and quick conversion of receivables to cash.
- Average Payables Payment Period
- The average payables payment period fluctuates significantly, beginning around 13 days in 2020 and increasing steadily to over 30 days by 2024. The lengthening payables period implies a strategic extension in creditor payments, possibly to optimize cash flow or leverage supplier credit terms more effectively.
- Cash Conversion Cycle (CCC)
- The CCC exhibits a downward trend from 84 days at the start of 2020 to a low of 36 days by Q3 2024. Periodic fluctuations occur, with some peaks, notably in early 2021 and again in 2023. The overall reduction in CCC indicates improved working capital efficiency, driven largely by faster inventory turnover and steady receivables, combined with an extended payables period.
In summary, the company demonstrates enhanced operational efficiency over the timeframe, particularly in receivables management and cash conversion speed. The extension of the payables payment period suggests deliberate working capital optimization. However, the increasing inventory processing period in the most recent quarters may warrant monitoring to prevent potential liquidity pressures.