Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Altria Group's annualizedNet Income for the quarter that ended in Mar. 2024 was $8,516 Mil. Altria Group's average total tangible assets for the quarter that ended in Mar. 2024 was $17,092 Mil. Therefore, Altria Group's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2024 was 49.82%.
The historical rank and industry rank for Altria Group's Return-on-Tangible-Asset or its related term are showing as below:
MO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -3.73 Med: 28.49 Max: 66.6
Current: 45.5
During the past 13 years, Altria Group's highest Return-on-Tangible-Asset was 66.60%. The lowest was -3.73%. And the median was 28.49%.
MO's Return-on-Tangible-Asset is ranked better than 90.38% of 52
companies
in the Tobacco Products industry
Industry Median: 6.545
vs MO: 45.50
Altria Group Return-on-Tangible-Asset Historical Data
The historical data trend for Altria Group's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Altria Group's Return-on-Tangible-Asset
For the Tobacco subindustry, Altria Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Altria Group's Return-on-Tangible-Asset Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Altria Group's Return-on-Tangible-Asset falls into.
Altria Group Return-on-Tangible-Asset Calculation
Altria Group's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2024) net income data.
Altria Group (NYSE:MO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Altria Group Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Altria Group's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Horizon Innovations and Helix Innovations. It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company's Marlboro brand is the leading cigarette brand in the U.S. with a 42% annual share in 2022. Altria holds a 42% stake in cannabis manufacturer Cronos, has acquired Njoy Holdings in 2023, and recently exited its strategic investment in Juul Labs.
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