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Altria Group (WBO:ALTR) Operating Margin % : 59.45% (As of Sep. 2024)


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What is Altria Group Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Altria Group's Operating Income for the three months ended in Sep. 2024 was €2,862 Mil. Altria Group's Revenue for the three months ended in Sep. 2024 was €4,815 Mil. Therefore, Altria Group's Operating Margin % for the quarter that ended in Sep. 2024 was 59.45%.

Good Sign:

Altria Group Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Altria Group's Operating Margin % or its related term are showing as below:

WBO:ALTR' s Operating Margin % Range Over the Past 10 Years
Min: 42.46   Med: 50.77   Max: 57.61
Current: 56.3


WBO:ALTR's Operating Margin % is ranked better than
96.15% of 52 companies
in the Tobacco Products industry
Industry Median: 7.21 vs WBO:ALTR: 56.30

Altria Group's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.

Altria Group's Operating Income for the three months ended in Sep. 2024 was €2,862 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was €10,505 Mil.


Altria Group Operating Margin % Historical Data

The historical data trend for Altria Group's Operating Margin % 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.

* Premium members only.

Altria Group Operating Margin % Chart

Altria Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 52.97 52.17 54.76 57.61 56.32

Altria Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 59.16 53.76 56.69 55.18 59.45

Competitive Comparison of Altria Group's Operating Margin %

For the Tobacco subindustry, Altria Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution in the Tobacco Products Industry

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

* The bar in red indicates where Altria Group's Operating Margin % falls into.



Altria Group Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Altria Group's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=10588.599 / 18800.334
=56.32 %

Altria Group's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=2862.477 / 4814.944
=59.45 %

* 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.


Altria Group  (WBO:ALTR) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Altria Group Operating Margin % Related Terms

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Altria Group Business Description

Address
6601 West Broad Street, Richmond, VA, USA, 23230
Altria comprises Philip Morris USA, us Smokeless Tobacco, John Middleton, Horizon Innovations, and Helix Innovations. Through its tobacco subsidiaries, Altria maintains 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 us with 42% annual share in 2023. Beyond its core business, it holds an 8% interest in the world's largest brewer, Anheuser-Busch InBev, a 42% stake in cannabis manufacturer Cronos, acquired Njoy Holdings in 2023, and operates a joint venture with Japan Tobacco in the heated tobacco category. It also recently disposed of its investment in Juul Labs.