Barrick Gold Corp. (ABX) | Profitability Analysis
Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).
Ratios (Summary)
Barrick Gold Corp., profitability ratios
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Return on Sales | ||||
| Gross profit margin | 47.38% | 55.87% | 53.08% | |
| Operating profit margin | -5.14% | 48.98% | 47.57% | |
| Net profit margin | -4.57% | 31.33% | 32.56% | |
| Return on Investment | ||||
| Return on equity (ROE) | -3.04% | 19.19% | 18.40% | |
| Return on assets (ROA) | -1.41% | 9.17% | 10.34% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Barrick Gold Corp.'s gross profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Barrick Gold Corp.'s operating profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Barrick Gold Corp.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Barrick Gold Corp.'s ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Barrick Gold Corp.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Gross Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||
| Gross profit | 6,893 | 7,996 | 5,839 | |
| Revenue | 14,547 | 14,312 | 11,001 | |
| Gross profit margin1 | 47.38% | 55.87% | 53.08% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
2012 Calculations
1 Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 6,893 ÷ 14,547 = 47.38%
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Barrick Gold Corp.'s gross profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
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Operating Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||
| Income (loss) before finance items and income taxes | (747) | 7,010 | 5,233 | |
| Revenue | 14,547 | 14,312 | 11,001 | |
| Operating Profit Margin, Comparison to Industry | ||||
| Barrick Gold Corp.1 | -5.14% | 48.98% | 47.57% | |
| Industry, Basic Materials | 15.29% | 28.68% | 28.44% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
2012 Calculations
1 Operating profit margin = 100 × Income (loss) before finance items and income taxes ÷ Revenue
= 100 × -747 ÷ 14,547 = -5.14%
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Barrick Gold Corp.'s operating profit margin improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
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Net Profit Margin
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||
| Net income (loss) attributable to equity holders of Barrick Gold Corporation | (665) | 4,484 | 3,582 | |
| Revenue | 14,547 | 14,312 | 11,001 | |
| Net Profit Margin, Comparison to Industry | ||||
| Barrick Gold Corp.1 | -4.57% | 31.33% | 32.56% | |
| Industry, Basic Materials | 9.14% | 19.22% | 19.94% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
2012 Calculations
1 Net profit margin = 100 × Net income (loss) attributable to equity holders of Barrick Gold Corporation ÷ Revenue
= 100 × -665 ÷ 14,547 = -4.57%
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Barrick Gold Corp.'s net profit margin deteriorated from 2010 to 2011 and from 2011 to 2012. |
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Return on Equity (ROE)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||
| Net income (loss) attributable to equity holders of Barrick Gold Corporation | (665) | 4,484 | 3,582 | |
| Equity attributable to Barrick Gold Corporation shareholders | 21,845 | 23,363 | 19,472 | |
| ROE, Comparison to Industry | ||||
| Barrick Gold Corp.1 | -3.04% | 19.19% | 18.40% | |
| Industry, Basic Materials | 10.15% | 23.59% | 21.79% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
2012 Calculations
1 ROE = 100 × Net income (loss) attributable to equity holders of Barrick Gold Corporation ÷ Equity attributable to Barrick Gold Corporation shareholders
= 100 × -665 ÷ 21,845 = -3.04%
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders' equity. | Barrick Gold Corp.'s ROE improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. |
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Return on Assets (ROA)
| Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||
| Net income (loss) attributable to equity holders of Barrick Gold Corporation | (665) | 4,484 | 3,582 | |
| Total assets | 47,282 | 48,884 | 34,637 | |
| ROA, Comparison to Industry | ||||
| Barrick Gold Corp.1 | -1.41% | 9.17% | 10.34% | |
| Industry, Basic Materials | 4.57% | 11.03% | 10.31% | |
Source: Based on data from Barrick Gold Corp. Annual Reports
2012 Calculations
1 ROA = 100 × Net income (loss) attributable to equity holders of Barrick Gold Corporation ÷ Total assets
= 100 × -665 ÷ 47,282 = -1.41%
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Barrick Gold Corp.'s ROA deteriorated from 2010 to 2011 and from 2011 to 2012. |
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