Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
GlaxoSmithKline PLC, profitability ratios
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | GlaxoSmithKline PLC gross profit margin ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | GlaxoSmithKline PLC operating profit margin ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | GlaxoSmithKline PLC net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | GlaxoSmithKline PLC ROE deteriorated from 2012 to 2013 and from 2013 to 2014. |
| ROA | A profitability ratio calculated as net income divided by total assets. | GlaxoSmithKline PLC ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Gross Profit Margin
GlaxoSmithKline PLC, gross profit margin calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Gross profit | 26,487) | 29,698) | 30,146) | 31,161) | 32,015) | |
| Turnover | 38,855) | 43,926) | 42,984) | 42,553) | 43,700) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 68.17% | 67.61% | 70.13% | 73.23% | 73.26% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Gross profit margin = 100 × Gross profit ÷ Turnover
= 100 × 26,487 ÷ 38,855 = 68.17%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | GlaxoSmithKline PLC gross profit margin ratio deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014. |
Operating Profit Margin
GlaxoSmithKline PLC, operating profit margin calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Operating profit | 6,075) | 11,647) | 12,021) | 12,130) | 5,823) | |
| Turnover | 38,855) | 43,926) | 42,984) | 42,553) | 43,700) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 15.64% | 26.52% | 27.97% | 28.51% | 13.32% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Operating profit margin = 100 × Operating profit ÷ Turnover
= 100 × 6,075 ÷ 38,855 = 15.64%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | GlaxoSmithKline PLC operating profit margin ratio deteriorated from 2012 to 2013 and from 2013 to 2014. |
Net Profit Margin
GlaxoSmithKline PLC, net profit margin calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Profit attributable to shareholders | 4,655) | 9,009) | 7,424) | 8,174) | 2,515) | |
| Turnover | 38,855) | 43,926) | 42,984) | 42,553) | 43,700) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 11.98% | 20.51% | 17.27% | 19.21% | 5.76% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
Net profit margin = 100 × Profit attributable to shareholders ÷ Turnover
= 100 × 4,655 ÷ 38,855 = 11.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | GlaxoSmithKline PLC net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |
Return on Equity (ROE)
GlaxoSmithKline PLC, ROE calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Profit attributable to shareholders | 4,655) | 9,009) | 7,424) | 8,174) | 2,515) | |
| Shareholders’ equity | 7,200) | 11,596) | 9,449) | 12,480) | 13,679) | |
| Profitability Ratio | ||||||
| ROE1 | 64.65% | 77.69% | 78.57% | 65.50% | 18.39% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
ROE = 100 × Profit attributable to shareholders ÷ Shareholders’ equity
= 100 × 4,655 ÷ 7,200 = 64.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | GlaxoSmithKline PLC ROE deteriorated from 2012 to 2013 and from 2013 to 2014. |
Return on Assets (ROA)
GlaxoSmithKline PLC, ROA calculation, comparison to benchmarks
| Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | Dec 31, 2010 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions, translated from GBP £) | ||||||
| Profit attributable to shareholders | 4,655) | 9,009) | 7,424) | 8,174) | 2,515) | |
| Total assets | 68,656) | 69,748) | 67,450) | 63,828) | 64,999) | |
| Profitability Ratio | ||||||
| ROA1 | 6.78% | 12.92% | 11.01% | 12.81% | 3.87% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | — | — | — | — | — | |
| Bristol-Myers Squibb Co. | — | — | — | — | — | |
| Danaher Corp. | — | — | — | — | — | |
| Eli Lilly & Co. | — | — | — | — | — | |
| Gilead Sciences Inc. | — | — | — | — | — | |
| Johnson & Johnson | — | — | — | — | — | |
| Merck & Co. Inc. | — | — | — | — | — | |
| Pfizer Inc. | — | — | — | — | — | |
| Regeneron Pharmaceuticals Inc. | — | — | — | — | — | |
| Thermo Fisher Scientific Inc. | — | — | — | — | — | |
| Zoetis Inc. | — | — | — | — | — | |
Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).
1 2014 Calculation
ROA = 100 × Profit attributable to shareholders ÷ Total assets
= 100 × 4,655 ÷ 68,656 = 6.78%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | GlaxoSmithKline PLC ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014. |