Stock Analysis on Net
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.

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

Reynolds American Inc., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net income1 ÷ Shareholders’ equity1
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
Dec 31, 2010 = 100 × ÷
Dec 31, 2009 = 100 × ÷
Dec 31, 2008 = 100 × ÷
Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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 data reveals several notable trends in the company's performance and position over the examined period.

Net Income
The net income generally shows an upward trajectory from 2005 through 2016, with some fluctuations. From 2005's 1042 million USD, there is a steady increase reaching a peak in 2008 at 1338 million USD. A decline is observed in 2009, dropping to 962 million USD, followed by recovery and growth to 1718 million USD by 2013. After a slight dip in 2014, net income experiences a significant rise in 2015 and 2016, culminating at 6073 million USD, indicating enhanced profitability towards the end of the period.
Shareholders' Equity
Shareholders’ equity remains relatively stable with modest fluctuations until 2014, ranging roughly between 4500 and 7500 million USD. However, from 2014 onwards, there is a marked increase, with equity expanding substantially to 18252 million USD in 2015 and further to 21711 million USD in 2016. This substantial growth could suggest capital injections, retained earnings accumulation, or revaluation impacts, reflecting a strengthening equity base in the latter years.
Return on Equity (ROE)
ROE shows a generally positive trend, indicating improving efficiency in generating earnings from equity. Starting at 15.9% in 2005, it increases to a high of 33.25% in 2013, demonstrating enhanced profitability and effective use of shareholders' funds. Despite a subsequent decrease in 2015 to 17.82%, ROE improves again in 2016 to 27.97%. The fluctuations in ROE, especially the dip following the 2013 peak, warrant examination concerning the changes in net income and equity levels.

Overall, the data points to a company strengthening its profitability and equity position over time. The sizable increases in net income and shareholders’ equity in the last two years suggest significant financial developments. The patterns in ROE reflect both increased earnings efficiency and variations corresponding with equity and income changes, embodying an evolving financial structure.

Comparison to Competitors

Reynolds American Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel
Reynolds American Inc. Coca-Cola Co. Mondelēz International Inc. PepsiCo Inc. Philip Morris International Inc.
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

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., ROE, long-term trends, comparison to sector (food, beverage & tobacco)

Microsoft Excel
Reynolds American Inc. Food, Beverage & Tobacco
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

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., ROE, long-term trends, comparison to industry (consumer staples)

Microsoft Excel
Reynolds American Inc. Consumer Staples
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

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).