Stock Analysis on Net

Reynolds American Inc. (NYSE:RAI)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2017.

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Reynolds American Inc., net profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The financial analysis reveals several significant trends regarding profitability and sales performance over the examined period.

Net Income
Net income shows an overall increasing trajectory from 2005 through 2016, with some fluctuations. It grew from 1,042 million US dollars in 2005 to a peak of 6,073 million US dollars in 2016. Notably, there was a decline between 2008 and 2009, where net income dropped from 1,338 million to 962 million. From 2014 onwards, net income experienced a marked surge, more than doubling in 2015 compared to the previous year and nearly doubling again in 2016.
Net Sales (Including Excise Taxes)
Net sales fluctuated moderately over the years but showed an overall upward trend. Starting from 10,431 million US dollars in 2005, it increased gradually, with minor decreases between 2007 and 2009, and again between 2011 and 2013. After 2013, net sales experienced a notable rise, reaching 16,846 million US dollars by 2016, indicating steady revenue growth in recent years.
Net Profit Margin
The net profit margin percentage displayed an improved profitability trend over the years but with significant volatility. It began at 9.99% in 2005, peaking initially at 12.46% in 2008. A decline occurred in 2009, falling to 7.79%, followed by a recovery with fluctuations through 2014. From 2014 onwards, there was a substantial increase in profit margin: 22.24% in 2015 and an exceptional 36.05% in 2016. This sharp ascent suggests significant improvement in cost management, pricing strategy, or changes in business structure contributing to enhanced profitability.

In summary, the data indicate that while net sales have grown steadily, net income and profit margins showed marked improvements, particularly in the last three years of the period. The pronounced increase in profitability ratios in 2015 and 2016 suggests efficiency gains or strategic shifts driving higher earnings relative to sales.


Comparison to Competitors

Reynolds American Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Food, Beverage & Tobacco)

Reynolds American Inc., net profit margin, long-term trends, comparison to sector (food, beverage & tobacco)

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Consumer Staples)

Reynolds American Inc., net profit margin, long-term trends, comparison to industry (consumer staples)

Microsoft Excel

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).