Return on Assets (ROA)
since 2005
Calculation
Reynolds American Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | 11.89% | = | 100 | × | 6,073) | ÷ | 51,095) |
| Dec 31, 2015 | 6.11% | = | 100 | × | 3,253) | ÷ | 53,224) |
| Dec 31, 2014 | 9.67% | = | 100 | × | 1,470) | ÷ | 15,196) |
| Dec 31, 2013 | 11.15% | = | 100 | × | 1,718) | ÷ | 15,402) |
| Dec 31, 2012 | 7.68% | = | 100 | × | 1,272) | ÷ | 16,557) |
| Dec 31, 2011 | 8.65% | = | 100 | × | 1,406) | ÷ | 16,254) |
| Dec 31, 2010 | 6.52% | = | 100 | × | 1,113) | ÷ | 17,078) |
| Dec 31, 2009 | 5.34% | = | 100 | × | 962) | ÷ | 18,009) |
| Dec 31, 2008 | 7.37% | = | 100 | × | 1,338) | ÷ | 18,154) |
| Dec 31, 2007 | 7.02% | = | 100 | × | 1,308) | ÷ | 18,629) |
| Dec 31, 2006 | 6.66% | = | 100 | × | 1,210) | ÷ | 18,178) |
| Dec 31, 2005 | 7.18% | = | 100 | × | 1,042) | ÷ | 14,519) |
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 trajectory from 2005 to 2016 is characterized by a period of relative stability followed by a significant structural expansion in the final two years of the observed timeframe. While profitability and asset levels remained within consistent ranges for nearly a decade, a substantial shift occurred in 2015, resulting in a marked increase in both total assets and net income.
- Net Income Trends
- Net income demonstrated a gradual upward trend from 2005 through 2014, fluctuating between a low of US$ 962 million in 2009 and a high of US$ 1,718 million in 2013. A significant acceleration in earnings is observed in 2015, with net income rising to US$ 3,253 million, followed by a further surge to US$ 6,073 million in 2016.
- Total Asset Evolution
- The asset base remained stable between 2005 and 2014, generally oscillating between US$ 15 billion and US$ 18 billion. A transformative increase occurred in 2015, where total assets jumped to US$ 53,224 million, more than tripling the previous year's balance. This expanded asset base was maintained into 2016 at US$ 51,095 million.
- Return on Assets (ROA) Analysis
- ROA exhibited moderate volatility during the first nine years, peaking at 11.15% in 2013 before dipping slightly in 2014. The massive expansion of the asset base in 2015 initially led to a dilution of efficiency, causing the ROA to drop to 6.11%. However, the subsequent and substantial increase in net income in 2016 resulted in a sharp recovery, bringing the ROA to its period high of 11.89%, suggesting a rapid optimization of the newly acquired or expanded assets.
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Comparison to Competitors
Reynolds American Inc., ROA, long-term trends, comparison to competitors
| Reynolds American Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 11.89% | 7.48% | 2.70% | 8.54% | 18.91% |
| Dec 31, 2015 | 6.11% | 8.16% | 11.56% | 7.83% | 20.24% |
| Dec 31, 2014 | 9.67% | 7.71% | 3.27% | 9.24% | 21.29% |
| Dec 31, 2013 | 11.15% | 9.53% | 5.40% | 8.70% | 22.47% |
| Dec 31, 2012 | 7.68% | 10.47% | 4.01% | 8.28% | 23.36% |
| Dec 31, 2011 | 8.65% | 10.72% | 3.76% | 8.84% | 24.21% |
| Dec 31, 2010 | 6.52% | 16.19% | 4.32% | 9.27% | 20.71% |
| Dec 31, 2009 | 5.34% | 14.02% | 4.53% | 14.92% | 18.35% |
| Dec 31, 2008 | 7.37% | 14.33% | 4.60% | 14.29% | 20.90% |
| Dec 31, 2007 | 7.02% | 13.82% | 3.81% | 16.34% | — |
| Dec 31, 2006 | 6.66% | 16.95% | 5.51% | 18.85% | — |
| Dec 31, 2005 | 7.18% | 16.56% | 4.57% | 12.85% | — |
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., ROA, long-term trends, comparison to sector (food, beverage & tobacco)
| Reynolds American Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Dec 31, 2016 | 11.89% | 8.27% |
| Dec 31, 2015 | 6.11% | 10.50% |
| Dec 31, 2014 | 9.67% | 8.80% |
| Dec 31, 2013 | 11.15% | 10.00% |
| Dec 31, 2012 | 7.68% | 9.86% |
| Dec 31, 2011 | 8.65% | 9.62% |
| Dec 31, 2010 | 6.52% | 10.87% |
| Dec 31, 2009 | 5.34% | 11.66% |
| Dec 31, 2008 | 7.37% | 12.02% |
| Dec 31, 2007 | 7.02% | 9.75% |
| Dec 31, 2006 | 6.66% | 11.94% |
| Dec 31, 2005 | 7.18% | 9.75% |
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., ROA, long-term trends, comparison to industry (consumer staples)
| Reynolds American Inc. | Consumer Staples | |
|---|---|---|
| Dec 31, 2016 | 11.89% | 7.94% |
| Dec 31, 2015 | 6.11% | 7.69% |
| Dec 31, 2014 | 9.67% | 7.96% |
| Dec 31, 2013 | 11.15% | 8.75% |
| Dec 31, 2012 | 7.68% | 8.63% |
| Dec 31, 2011 | 8.65% | 8.89% |
| Dec 31, 2010 | 6.52% | 9.45% |
| Dec 31, 2009 | 5.34% | 9.43% |
| Dec 31, 2008 | 7.37% | 9.11% |
| Dec 31, 2007 | 7.02% | 8.07% |
| Dec 31, 2006 | 6.66% | 8.42% |
| Dec 31, 2005 | 7.18% | 9.55% |
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).