Operating Profit Margin
since 2005
Calculation
Reynolds American Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales, includes excise taxes1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | 62.74% | = | 100 | × | 10,569) | ÷ | 16,846) |
| Dec 31, 2015 | 47.54% | = | 100 | × | 6,953) | ÷ | 14,625) |
| Dec 31, 2014 | 20.92% | = | 100 | × | 2,531) | ÷ | 12,096) |
| Dec 31, 2013 | 26.17% | = | 100 | × | 3,132) | ÷ | 11,966) |
| Dec 31, 2012 | 18.11% | = | 100 | × | 2,214) | ÷ | 12,227) |
| Dec 31, 2011 | 18.97% | = | 100 | × | 2,399) | ÷ | 12,648) |
| Dec 31, 2010 | 18.77% | = | 100 | × | 2,419) | ÷ | 12,891) |
| Dec 31, 2009 | 14.38% | = | 100 | × | 1,775) | ÷ | 12,346) |
| Dec 31, 2008 | 19.12% | = | 100 | × | 2,052) | ÷ | 10,735) |
| Dec 31, 2007 | 20.71% | = | 100 | × | 2,288) | ÷ | 11,049) |
| Dec 31, 2006 | 18.15% | = | 100 | × | 1,930) | ÷ | 10,634) |
| Dec 31, 2005 | 13.99% | = | 100 | × | 1,459) | ÷ | 10,431) |
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
- Operating Income
- The operating income demonstrated a generally upward trend over the period evaluated, increasing from $1,459 million in 2005 to $10,569 million in 2016. Although there were fluctuations, notable increases occurred particularly after 2013, with sharp rises in 2015 and 2016, indicating significant growth in operating profitability during the latter years.
- Net Sales, Includes Excise Taxes
- Net sales displayed a gradual growth pattern from $10,431 million in 2005 to $16,846 million in 2016. The sales figures exhibited steady increments with minor variations, reaching a peak in 2016. This steady increase indicates positive revenue development throughout the evaluated years, though some years showed slight declines or stagnation.
- Operating Profit Margin
- The operating profit margin experienced variability, starting at 13.99% in 2005 and generally trending upward to reach a peak of 62.74% in 2016. There were fluctuations with margins dipping in 2009 and again around 2012 to 2014, but the margin saw a dramatic rise in the last two years. This suggests improving operational efficiency and profitability relative to sales during the final years of the period.
- Overall Analysis
- The data illustrates a strong growth trajectory in operating income and operating profit margin, particularly pronounced in the final years, while net sales also grew but at a more moderate pace. The disproportionate increase in operating income and profit margin relative to sales growth in the later years points to enhanced cost controls, improved operational leverage, or other factors contributing to higher profitability independent of sales volume increases.
Comparison to Competitors
Reynolds American Inc., operating profit margin, long-term trends, comparison to competitors
| Reynolds American Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 62.74% | 20.61% | 9.91% | 15.58% | 40.53% |
| Dec 31, 2015 | 47.54% | 19.70% | 30.02% | 13.25% | 39.65% |
| Dec 31, 2014 | 20.92% | 21.11% | 9.47% | 14.37% | 39.31% |
| Dec 31, 2013 | 26.17% | 21.83% | 11.25% | 14.61% | 43.29% |
| Dec 31, 2012 | 18.11% | 22.45% | 10.39% | 13.91% | 44.18% |
| Dec 31, 2011 | 18.97% | 21.82% | 12.25% | 14.48% | 42.90% |
| Dec 31, 2010 | 18.77% | 24.06% | 11.51% | 14.41% | 41.16% |
| Dec 31, 2009 | 14.38% | 26.56% | 13.68% | 18.61% | 40.10% |
| Dec 31, 2008 | 19.12% | 26.44% | 9.04% | 16.03% | 39.87% |
| Dec 31, 2007 | 20.71% | 25.13% | 11.63% | 18.16% | — |
| Dec 31, 2006 | 18.15% | 26.19% | 13.17% | 18.33% | — |
| Dec 31, 2005 | 13.99% | 26.34% | 13.93% | 18.19% | — |
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).