Altria Group (Altria Group) Interest Coverage

: 6.91 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Altria Group's Operating Income for the three months ended in Dec. 2023 was $2,701 Mil. Altria Group's Interest Expense for the three months ended in Dec. 2023 was $-391 Mil. Altria Group's interest coverage for the quarter that ended in Dec. 2023 was 6.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Altria Group's Interest Coverage or its related term are showing as below:

MO' s Interest Coverage Range Over the Past 10 Years
Min: 7.93 Med: 10.12 Max: 13.63
Current: 10.05

MO's Interest Coverage is ranked worse than
62.5% of 32 companies
in the Tobacco Products industry
Industry Median: 18.285 vs MO: 10.05

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Altria Group Interest Coverage Historical Data

The historical data trend for Altria Group's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Altria Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

7.93

8.89

9.73

10.57

10.05

Altria Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																9.06	12.17	11.42	11.48	6.91

Competitive Comparison

For the Tobacco subindustry, Altria Group's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Altria Group's Interest Coverage falls into.

Altria Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Altria Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Altria Group's Interest Expense was $-1,149 Mil. Its Operating Income was $11,547 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,112 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	11547	/	-1149
	=	10.05

Altria Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Altria Group's Interest Expense was $-391 Mil. Its Operating Income was $2,701 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,112 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	2701	/	-391
	=	6.91

The higher the ratio, the stronger the company's Financial Strength is.

Altria Group (NYSE:MO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Altria Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Altria Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Altria Group (Altria Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Altria Group Inc (NYSE:MO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MO:Mexico 1MO:Italy PHM7d:UK 0R31:UK PHM7:Germany PHM7:Germany PHM7:Germany PHM7:Germany MO:Chile MOOO34:Brazil ALTR:Austria MO:Argentina

Address

6601 West Broad Street, Richmond, VA, USA, 23230

Website

https://www.altria.com

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.

Executives

Clarke Ian L.t.	director	6601 W BROAD ST, RICHMOND VA 23230
Robert Matthew Davis	director	6601 W. BROAD STREET, RICHMOND VA 23230
Jacinto J Hernandez	director	777 HIDDEN RIDGE, IRVING TX 75038
Mario Max Yzaguirre	director	1515 WEST 190TH STREET, SUITE 275, GARDENA CA 90248
Marjorie Mary Connelly	director	2580 PALMER DR, KESWICK VA 22947
Ellen R Strahlman	director	ALTRIA GROUP, INC., 6601 W. BROAD STREET, RICHMOND VA 23230
Nabil Y Sakkab	director	6601 WEST BROAD STREET, RICHMOND VA 23230
Virginia E Shanks	director	4170 CAUGHLIN PARKWAY, RENO NV 89519
Casteen John T Iii	director	301 S. COLLEGE STREET, 30TH FLOOR, NC0630, CHARLOTTE NC 28288-0630
Kathryn B. Mcquade	director	6601 WEST BROAD STREET, RICHMOND VA 23230
Kiely W Leo Iii	director
Mark Newman	director	1011 WARRENVILLE ROAD, SUITE 600, LISLE IL 60532
Kelly Ennis Debra J	director	4405 A INTERNATIONAL BLVD, NORCROSS GA 30093
Surgner W Hildebrandt Jr	officer: VP, Corp. Sec'y & Assoc. GC	6601 WEST BROAD STREET, RICHMOND VA 23230
Daniel J Bryant	officer: Vice President & Treasurer	6601 WEST BROAD STREET, RICHMOND VA 23230