Altria Group Inc. (NYSE:MO)

Asset Turnover Trends

The reported total asset turnover ratio demonstrated a generally positive trend from 0.51 in 2019 to a peak of 0.68 in 2022, followed by a slight decline to 0.63 in 2023. The adjusted total asset turnover mirrored this pattern closely, increasing from 0.50 in 2019 to 0.67 in 2022, then decreasing marginally to 0.62 in 2023. This indicates an improvement in the company’s efficiency in using its assets to generate revenue over the analyzed periods, with a minor pullback observed in the latest year.

Liquidity Indicators

The reported current ratio showed fluctuations across the years, initially improving from 0.59 in 2019 to 0.79 in 2020, then dipping to 0.71 in 2021, improving again to 0.84 in 2022, and sharply declining to 0.49 in 2023. Similarly, the adjusted current ratio followed a comparable trajectory with values ranging from 0.66 to 0.92 between 2019 and 2022, before dropping to 0.56 in 2023. This trend suggests variability in short-term liquidity, ending with a significant decrease in the most recent year, potentially indicating increased short-term financial pressure or reduced current assets relative to liabilities.

Leverage Ratios

The reported debt to equity ratio increased substantially from 4.51 in 2019 to 10.38 in 2020, with no values reported beyond 2020. The adjusted debt to equity ratio showed a rising trend from 2.34 in 2019 to 10.55 in 2021, suggesting increasing reliance on debt relative to equity in the capital structure. The reported debt to capital ratio rose consistently, starting at 0.82 in 2019 and peaking at 1.17 in 2022 before a slight decline to 1.16 in 2023. The adjusted debt to capital followed a similar upward progression from 0.70 to 1.02 and slightly decreased to 1.00 in 2023. These metrics collectively imply a trend of growing financial leverage over the assessed period.

Financial Leverage

The reported financial leverage ratio exhibited a sharp increase from 7.92 in 2019 to 16.7 in 2020, with later periods unreported. Adjusted financial leverage showed a consistent increase from 4.16 in 2019 through 15.08 in 2021, aligning with the observed rise in debt levels and signaling a heightened use of debt financing relative to equity base.

Profitability Margins

Reported net profit margin improved markedly, recovering from a negative -5.15% in 2019 to 17.08% in 2020, experiencing some volatility but ultimately reaching 33.21% in 2023. Adjusted net profit margins followed a similar trajectory, starting at -7.21% and rising to 32.67% in 2023. This reflects substantial gains in profitability and operational efficiency over the analyzed period.

Returns on Equity and Assets

The reported return on equity (ROE) showed extraordinary volatility, moving from a negative -20.78% in 2019 to an exceptionally high 157.34% in 2020, with data unavailable for subsequent years. Adjusted ROE demonstrated a more moderate but still significant increase, peaking at 97.78% in 2021 after starting from -15.11% in 2019. Reported return on assets (ROA) transitioned from negative -2.62% to positive figures, achieving 21.08% by 2023. Adjusted ROA mirrored this trend, consistently improving from -3.63% to 20.38%. These trends suggest substantial improvements in asset profitability and shareholder value creation, despite volatility in ROE.

Summary

Overall, the company exhibited improving asset utilization and profitability over the period, with increased financial leverage and fluctuations in liquidity. Profit margins and returns both on equity and assets showed significant improvement, indicating enhanced operational performance and earnings quality. However, the notable increase in leverage ratios and the decline in current ratios in the last year warrant careful monitoring to assess risks related to financial structure and short-term obligations.

Net Revenues

Over the five-year period, net revenues exhibited a modest fluctuation, initially increasing from 25,110 million USD in 2019 to a peak of 26,153 million USD in 2020. Subsequently, revenues slightly declined each year, reaching 24,483 million USD by 2023. This indicates a general downward trend in sales after 2020, with a total decrease of approximately 6.5% from the 2020 peak to 2023.

Total Assets

Total assets showed a consistent downward trajectory from 49,271 million USD in 2019 to 36,954 million USD in 2022, representing a substantial reduction of approximately 25%. In 2023, there was a slight increase to 38,570 million USD, signaling a potential stabilization or minor recovery of asset base after several years of decline.

Reported Total Asset Turnover

The reported total asset turnover ratio improved steadily from 0.51 in 2019 to 0.68 in 2022, indicating enhanced efficiency in the use of assets to generate revenues. However, in 2023, the ratio decreased slightly to 0.63, suggesting a modest decline in asset utilization efficiency relative to the prior year, yet remaining significantly higher than at the start of the period.

Adjusted Total Assets

Adjusted total assets mirrored the trend observed in total assets, declining from 49,811 million USD in 2019 to 37,579 million USD in 2022, a decrease consistent with the reported asset values. This was followed by a slight increase to 39,242 million USD in 2023, reinforcing the notion of stabilization in asset levels toward the end of the period.

Adjusted Total Asset Turnover

Similar to the reported ratio, the adjusted total asset turnover increased from 0.50 in 2019 to 0.67 in 2022, before settling at 0.62 in 2023. This pattern indicates improved utilization of assets on an adjusted basis over the earlier years, with a slight easing in efficiency during the final year under review.

Summary Insights

The data reveals a pattern of declining asset base over the majority of the period, accompanied by a general increase in asset turnover ratios, suggesting efforts or outcomes oriented toward more efficient asset use. Despite a reduction in net revenues post-2020, the company managed to enhance asset productivity. The slight rebounds in asset values and moderate declines in turnover ratios in 2023 may indicate an adjustment phase or response to changing market conditions.

The financial data indicates notable fluctuations in both current assets and current liabilities over the five-year period.

Current Assets

The value of current assets experienced an overall increasing trend from 2019 to 2020, rising significantly from 4,824 million US dollars to 7,117 million US dollars. However, this was followed by a decline in 2021 to 6,083 million US dollars, then a rebound in 2022 to 7,220 million US dollars, and a sharp decrease in 2023 to 5,585 million US dollars. This pattern suggests some volatility in the company's liquid or short-term resources.

Current Liabilities

Current liabilities showed a generally upward trend over the same period, increasing from 8,174 million US dollars in 2019 to 11,319 million US dollars in 2023. The growth was more moderate in the earlier years but accelerated notably between 2022 and 2023, indicating a rising short-term obligation burden.

Reported Current Ratio

The reported current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, shows fluctuating ratios below 1. The ratio improved from 0.59 in 2019 to a peak of 0.84 in 2022, suggesting enhancements in liquidity during that timeframe. Nevertheless, there was a sharp decline to 0.49 in 2023, reflecting a potential deterioration in liquidity and a weaker short-term financial position.

Adjusted Current Assets and Ratio

Adjusted current assets, which presumably account for more conservative or refined asset valuations, follow a similar pattern to reported current assets but with slightly higher values each year. The adjusted current ratio likewise exhibits a consistent trend with reported ratios but tends to be moderately higher, reflecting a somewhat better liquidity position when adjustments are considered. Despite this, in 2023, the adjusted current ratio also dropped notably to 0.56, reinforcing concerns about short-term coverage.

Overall, the data highlight a rising trend in short-term liabilities coupled with volatility and an eventual decline in the company's current asset base. The liquidity ratios suggest that, while liquidity improved between 2019 and 2022, it substantially worsened in the latest reporting year. This trend may warrant further examination of the causes behind the declining asset levels and increasing liabilities as well as the potential impact on the company’s short-term financial stability.

The financial data over the five-year period reveals several significant trends regarding the company’s capital structure and equity position.

Total Debt

The total debt levels exhibit a general downward trend from 2019 to 2023. Starting at US$28,042 million in 2019, the debt increased slightly in 2020 to US$29,471 million but then consistently decreased over the subsequent years, reaching US$26,233 million by the end of 2023. This indicates a gradual reduction in the company's borrowing or liabilities over this period.

Stockholders’ Equity (Deficit) Attributable to Altria

The stockholders’ equity shows a concerning decline during the period. Beginning at a positive US$6,222 million in 2019, it decreased sharply to US$2,839 million in 2020, followed by a shift to negative territory in 2021 at -US$1,606 million. The deficit deepened further in 2022 to -US$3,973 million and remained negative at -US$3,540 million in 2023. This trend reflects deteriorating net assets available to shareholders, suggesting potential financial stress or accumulated losses.

Reported Debt to Equity Ratio

Reported debt to equity ratio increased markedly from 4.51 in 2019 to 10.38 in 2020, indicating a sharp rise in leverage relative to equity. Data for subsequent years is missing, but the initial increase aligns with the observed reduction in equity and a rise in debt in 2020.

Adjusted Total Stockholders’ Equity (Deficit)

Adjusted equity figures follow a similar deteriorating pattern as the reported equity. Starting at US$11,980 million in 2019, adjusted equity declined to US$7,998 million in 2020, then to US$2,659 million in 2021. By 2022, it turned negative at -US$401 million and further down to -US$19 million in 2023. This pattern suggests that even after adjustments, the equity base weakened significantly, reaching near breakeven levels by 2023.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio moved upward initially, from 2.34 in 2019 to 3.68 in 2020, and then sharply to 10.55 in 2021, reflecting increased leverage amid declining equity. Data beyond 2021 is not available, but the substantial rise by 2021 indicates intensified financial leverage pressures in that period.

Overall, the financial data indicate that while total debt has been moderately reduced since its peak in 2020, the company’s equity position—both reported and adjusted—has deteriorated significantly, moving deeply into negative territory. This has caused elevated leverage ratios in the early years, implying increased financial risk and potential challenges in capital structure stability. The trends suggest that the company faced adverse conditions affecting its equity base substantially during the period under review.

The data reveals several notable trends in the financial leverage and capital structure over the five-year period.

Total Debt

Total debt experienced a slight increase from 2019 to 2020, rising from approximately 28.0 billion USD to 29.5 billion USD. Subsequently, a gradual decline was observed over the next three years, reaching around 26.2 billion USD in 2023. Overall, total debt fluctuated within a relatively narrow range, with a downward trend after 2020.

Total Capital

Total capital showed a continuous decline throughout the period, decreasing from roughly 34.3 billion USD in 2019 to 22.7 billion USD in 2022 and marginally stabilizing around 22.7 billion USD in 2023. This represents a substantial reduction in capital base, approximately a one-third decrease over five years.

Reported Debt to Capital Ratio

This ratio indicates a steady increase from 0.82 in 2019 to over 1.16 in 2023, signifying that reported total debt has grown relative to reported capital, reaching a level where debt exceeds total capital starting in 2021. The increase implies heightened financial leverage and potential increased risk from a capital structure perspective.

Adjusted Total Capital

Adjusted total capital, which may account for additional factors such as off-balance-sheet items or other financial adjustments, similarly declined from about 40.0 billion USD in 2019 to roughly 26.2 billion USD in 2023. The decline mirrors the trend seen in total capital but from a higher initial base.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio rose consistently from 0.7 in 2019 to reach 1.02 in 2022, with a slight reduction to 1.0 in 2023. This indicates increased leverage based on adjusted measures, showing debt equaling or slightly exceeding adjusted capital by the end of the period.

In summary, the data indicates a decreasing capital base alongside relatively stable or slightly declining debt levels, which collectively have caused a progressively higher leverage ratio. Both reported and adjusted metrics show the company operating with debt levels at or above its capital, suggesting a more leveraged financial position over the analyzed timeframe. This trend may warrant close monitoring for potential impacts on credit risk and financial flexibility.

The financial data indicates a notable decline in total assets over the five-year period from 2019 to 2023. Total assets decreased from US$49,271 million in 2019 to a low of US$36,954 million in 2022, with a slight recovery to US$38,570 million in 2023. This points to a contraction in the company's asset base over time, although some stabilization appears towards the end of the period.

Stockholders’ equity attributable to the company experienced a significant deterioration. Beginning at US$6,222 million in 2019, equity sharply declined to US$2,839 million in 2020, before shifting into negative territory with deficits of US$-1,606 million in 2021 and further declining to US$-3,973 million in 2022. A minor improvement is observed in 2023 with a deficit of US$-3,540 million. This trend illustrates increasing financial distress or accumulated losses, adversely impacting the net worth of the shareholders.

The reported financial leverage ratio, available for 2019 and 2020 only, nearly doubled from 7.92 to 16.7, indicating a significant increase in the company's use of debt relative to equity or assets. Data for subsequent years is not provided, limiting analysis for later periods.

Adjusted total assets closely mirror the total assets trend, decreasing from US$49,811 million in 2019 to US$37,579 million in 2022, with a modest increase to US$39,242 million in 2023, reaffirming the contraction and partial recovery of the asset base when adjustments are considered.

Adjusted stockholders’ equity follows the deteriorating trend of reported equity, starting at US$11,980 million in 2019, declining sharply to US$2,659 million in 2021, and turning slightly negative by 2022 and 2023, with values of US$-401 million and US$-19 million, respectively. This highlights a worsening financial position even after adjustments.

Adjusted financial leverage shows a marked increase from 4.16 in 2019 to 15.08 in 2021, reflecting a substantial rise in leverage. The lack of data for 2022 and 2023 prevents full evaluation, but the increase up to 2021 emphasizes growing reliance on debt financing relative to equity.

Overall, the data portrays a company experiencing shrinking asset levels and a severe decline in equity, moving into net deficits. Concurrently, financial leverage ratios have increased markedly, suggesting a higher risk profile due to elevated debt levels. Although minor improvements in total assets and adjusted equity are seen in 2023, the company's financial position remains strained, requiring careful management attention to improve solvency and reduce leverage risks.

The financial data displays significant fluctuations in profitability and stable to slight declines in net revenues over the analyzed period.

Net Earnings (Losses) Attributable to Altria (US$ in millions)

There was a considerable shift from a net loss of $1293 million in 2019 to positive earnings beginning in 2020. Net earnings rose to $4467 million in 2020, followed by a decrease to $2475 million in 2021. Subsequently, a marked upward trend is observed, with net earnings increasing to $5764 million in 2022 and further to $8130 million in 2023, indicating strong growth in profitability in the later years.

Net Revenues (US$ in millions)

Net revenues remained relatively stable but show a gradual decline over the period. Starting at $25110 million in 2019, revenues increased slightly to $26153 million in 2020, then decreased marginally to $26013 million in 2021. From 2022 onward, net revenues continued a slow decline to $25096 million and $24483 million in 2022 and 2023 respectively.

Reported Net Profit Margin (%)

The reported net profit margin moves from a negative margin of -5.15% in 2019 to positive and improving margins thereafter. It rose substantially to 17.08% in 2020, decreased to 9.51% in 2021, then increased sharply to 22.97% in 2022 and further to 33.21% in 2023. This indicates enhanced profitability efficiency despite the slight revenue decline.

Adjusted Net Earnings (Losses) (US$ in millions)

Adjusted net earnings mirror the net earnings trend, starting from a loss of $1810 million in 2019 to positive gains in subsequent years. Adjusted earnings increased to $2813 million in 2020 and remained relatively stable at $2600 million in 2021. A pronounced growth is observed in 2022 and 2023, with adjusted earnings reaching $5202 million and $7998 million, respectively.

Adjusted Net Profit Margin (%)

The adjusted net profit margin reflects improvement from a negative margin of -7.21% in 2019 to a positive and growing margin in the following years. From 10.76% in 2020, it slightly increased to 10% in 2021, then rose significantly to 20.73% in 2022 and 32.67% in 2023. This suggests strong operational improvements and effective cost management when accounting for adjustments.

The financial data reveals notable fluctuations in the company's profitability and equity position over the five-year period.

Net Earnings (Losses) Attributable to Altria

There is a marked turnaround from a loss of $1,293 million in 2019 to steadily increasing profits subsequently, reaching $8,130 million by 2023. The trajectory shows a significant recovery in 2020 and continued growth each year, suggesting improving operational performance or favorable market conditions.

Stockholders’ Equity (Deficit) Attributable to Altria

The equity position declines substantially over the period. Starting at $6,222 million in 2019, it reduces sharply to $2,839 million in 2020 and enters a deficit position from 2021 onward, reaching a low of negative $3,973 million in 2022 before slightly improving to negative $3,540 million in 2023. This indicates increasing liabilities or asset impairments surpassing the company’s assets.

Reported Return on Equity (ROE)

The reported ROE shows extreme variability, beginning at -20.78% in 2019 and jumping to an anomalous 157.34% in 2020. No data is reported for subsequent years, likely due to the equity turning negative, which renders the ratio mathematically unreliable or economically meaningless in these periods.

Adjusted Net Earnings (Losses)

Adjusted earnings similarly show improvement, with an initial loss of $1,810 million in 2019 turning into consistent profits through 2023. The progressive increase from $2,813 million in 2020 to $7,998 million in 2023 indicates robust earnings growth after excluding certain adjustments.

Adjusted Total Stockholders’ Equity (Deficit)

The adjusted equity follows a declining trend, beginning at $11,980 million in 2019 and dropping sharply to $7,998 million in 2020, then further falling to $2,659 million in 2021. It turns negative in 2022 and 2023, though with very limited deficit values (-$401 million and -$19 million respectively), suggesting an improving adjusted financial position relative to the unadjusted deficit.

Adjusted Return on Equity (ROE)

The adjusted ROE improves substantially from -15.11% in 2019 to 35.17% in 2020, and then peaks impressively at 97.78% in 2021. No data is reported for the last two years, likely attributable to the equity turning negative, compromising the metric’s reliability.

In summary, while earnings performance has demonstrated strong recovery and growth post-2019, reflected in both reported and adjusted measures, the equity base has weakened significantly, resulting in negative shareholders’ equity in recent years. This equity erosion affects the meaningfulness of ROE metrics, which show volatile and incomplete data. The adjusted financial measures suggest somewhat better positioning than unadjusted figures but still reflect a loss of equity. The trends point to a financial structure under stress despite improving profitability, highlighting potential concerns regarding capital adequacy and financial stability.

Net Earnings (Losses) Attributable to Altria

Net earnings experienced significant volatility over the period, with a sharp loss in 2019 followed by a substantial recovery in 2020. Subsequent years show a consistent upward trend, increasing from 2,475 million USD in 2021 to 8,130 million USD by the end of 2023. This pattern reflects a strong recovery and robust growth in profitability in recent years.

Total Assets

Total assets decreased markedly from nearly 49,300 million USD at the end of 2019 to 38,570 million USD by the end of 2023. The decline was most pronounced in the initial years, suggesting asset disposals or reevaluation, but the asset base stabilized and slightly increased in the last year of the period analyzed.

Reported Return on Assets (ROA)

The reported ROA mirrored the net earnings trend, starting with a negative return in 2019 and progressing to significantly positive figures in subsequent years. The ratio improved steadily, reaching over 21% by 2023, indicating enhanced profitability relative to the asset base and a more efficient utilization of assets.

Adjusted Net Earnings (Losses)

Adjusted net earnings followed a similar trajectory to reported earnings but started with a larger loss in 2019. Recovery occurred in 2020 with positive earnings maintained thereafter. Sharp growth in adjusted net earnings was observed in 2022 and 2023, culminating in nearly 8,000 million USD, which underscores ongoing operational improvements and possibly favorable adjustments considered by management.

Adjusted Total Assets

Adjusted total assets declined from approximately 49,800 million USD in 2019 to around 39,200 million USD by the end of 2023, echoing the pattern seen in reported total assets. This decline and subsequent stabilization suggest a strategic shift or revaluation influencing the asset base after adjustments.

Adjusted Return on Assets (ROA)

Adjusted ROA showed progressive improvement from a negative 3.63% in 2019 to over 20% in 2023. The consistent increase highlights enhanced profitability when accounting for adjustments, reflecting stronger operational performance and efficient asset management over time.