BTI Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - British American Tobacco PLC - Alpha Spread

British American Tobacco PLC
NYSE:BTI

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British American Tobacco PLC
NYSE:BTI
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Price: 37.9 USD 1.23% Market Closed
Market Cap: 83.8B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
British American Tobacco PLC

Revenue
26.2B GBP
Cost of Revenue
-4.6B GBP
Gross Profit
21.6B GBP
Operating Expenses
-10.7B GBP
Operating Income
10.9B GBP
Other Expenses
-24.8B GBP
Net Income
-13.8B GBP

Margins Comparison
British American Tobacco PLC Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
UK
British American Tobacco PLC
LSE:BATS
63.2B GBP
83%
42%
-53%
US
Philip Morris International Inc
NYSE:PM
188.3B USD
64%
37%
24%
US
Altria Group Inc
NYSE:MO
87.2B USD
59%
48%
42%
IN
ITC Ltd
NSE:ITC
6.4T INR
56%
31%
26%
JP
Japan Tobacco Inc
TSE:2914
7.3T JPY
55%
23%
17%
UK
Imperial Brands PLC
LSE:IMB
18.9B GBP
21%
11%
6%
SE
Swedish Match AB
F:SWMC
15.2B EUR
66%
41%
30%
KR
KT&G Corp
KRX:033780
12.1T KRW
48%
20%
18%
CN
Smoore International Holdings Ltd
HKEX:6969
64.3B HKD
40%
19%
15%
ID
Hanjaya Mandala Sampoerna Tbk PT
IDX:HMSP
90.1T IDR
16%
7%
7%
IN
Godfrey Phillips India Ltd
NSE:GODFRYPHLP
381B INR
37%
14%
16%
Country UK
Market Cap 63.2B GBP
Gross Margin
83%
Operating Margin
42%
Net Margin
-53%
Country US
Market Cap 188.3B USD
Gross Margin
64%
Operating Margin
37%
Net Margin
24%
Country US
Market Cap 87.2B USD
Gross Margin
59%
Operating Margin
48%
Net Margin
42%
Country IN
Market Cap 6.4T INR
Gross Margin
56%
Operating Margin
31%
Net Margin
26%
Country JP
Market Cap 7.3T JPY
Gross Margin
55%
Operating Margin
23%
Net Margin
17%
Country UK
Market Cap 18.9B GBP
Gross Margin
21%
Operating Margin
11%
Net Margin
6%
Country SE
Market Cap 15.2B EUR
Gross Margin
66%
Operating Margin
41%
Net Margin
30%
Country KR
Market Cap 12.1T KRW
Gross Margin
48%
Operating Margin
20%
Net Margin
18%
Country CN
Market Cap 64.3B HKD
Gross Margin
40%
Operating Margin
19%
Net Margin
15%
Country ID
Market Cap 90.1T IDR
Gross Margin
16%
Operating Margin
7%
Net Margin
7%
Country IN
Market Cap 381B INR
Gross Margin
37%
Operating Margin
14%
Net Margin
16%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
British American Tobacco PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
British American Tobacco PLC
LSE:BATS
63.2B GBP
-22%
-10%
9%
8%
US
Philip Morris International Inc
NYSE:PM
188.3B USD
-90%
14%
33%
19%
US
Altria Group Inc
NYSE:MO
87.2B USD
-296%
28%
44%
26%
IN
ITC Ltd
NSE:ITC
6.4T INR
28%
23%
33%
30%
JP
Japan Tobacco Inc
TSE:2914
7.3T JPY
12%
7%
12%
9%
UK
Imperial Brands PLC
LSE:IMB
18.9B GBP
41%
7%
21%
14%
SE
Swedish Match AB
F:SWMC
15.2B EUR
-149%
34%
66%
45%
KR
KT&G Corp
KRX:033780
12.1T KRW
11%
8%
12%
9%
CN
Smoore International Holdings Ltd
HKEX:6969
64.3B HKD
8%
6%
10%
18%
ID
Hanjaya Mandala Sampoerna Tbk PT
IDX:HMSP
90.1T IDR
30%
15%
30%
17%
IN
Godfrey Phillips India Ltd
NSE:GODFRYPHLP
381B INR
22%
16%
18%
12%
Country UK
Market Cap 63.2B GBP
ROE
-22%
ROA
-10%
ROCE
9%
ROIC
8%
Country US
Market Cap 188.3B USD
ROE
-90%
ROA
14%
ROCE
33%
ROIC
19%
Country US
Market Cap 87.2B USD
ROE
-296%
ROA
28%
ROCE
44%
ROIC
26%
Country IN
Market Cap 6.4T INR
ROE
28%
ROA
23%
ROCE
33%
ROIC
30%
Country JP
Market Cap 7.3T JPY
ROE
12%
ROA
7%
ROCE
12%
ROIC
9%
Country UK
Market Cap 18.9B GBP
ROE
41%
ROA
7%
ROCE
21%
ROIC
14%
Country SE
Market Cap 15.2B EUR
ROE
-149%
ROA
34%
ROCE
66%
ROIC
45%
Country KR
Market Cap 12.1T KRW
ROE
11%
ROA
8%
ROCE
12%
ROIC
9%
Country CN
Market Cap 64.3B HKD
ROE
8%
ROA
6%
ROCE
10%
ROIC
18%
Country ID
Market Cap 90.1T IDR
ROE
30%
ROA
15%
ROCE
30%
ROIC
17%
Country IN
Market Cap 381B INR
ROE
22%
ROA
16%
ROCE
18%
ROIC
12%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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