RIO Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Rio Tinto PLC - Alpha Spread
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Rio Tinto PLC
NYSE:RIO

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Rio Tinto PLC
NYSE:RIO
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Price: 62.91 USD -0.02% Market Closed
Market Cap: 102.7B 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
Rio Tinto PLC

Revenue
54.2B USD
Operating Expenses
-38.6B USD
Operating Income
15.6B USD
Other Expenses
-4.8B USD
Net Income
10.7B USD

Margins Comparison
Rio Tinto PLC Competitors

Country Company Market Cap Operating
Margin
Net
Margin
UK
Rio Tinto PLC
NYSE:RIO
102.1B USD
29%
20%
AU
BHP Group Ltd
NYSE:BHP
135.6B USD
42%
14%
AU
Rio Tinto Ltd
ASX:RIO
178.1B AUD
29%
20%
CH
Glencore PLC
LSE:GLEN
46.2B GBP
2%
0%
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
813.5B MXN
41%
23%
SA
Saudi Arabian Mining Company SJSC
SAU:1211
150B SAR
18%
10%
UK
Anglo American PLC
LSE:AAL
28.4B GBP
22%
-6%
ZA
African Rainbow Minerals Ltd
JSE:ARI
35.2B Zac
13%
42%
IN
Hindustan Zinc Ltd
NSE:HINDZINC
2.1T INR
36%
27%
CA
Teck Resources Ltd
NYSE:TECK
24.5B USD
21%
9%
CN
CMOC Group Ltd
SSE:603993
144.4B CNY
13%
6%
Country UK
Market Cap 102.1B USD
Operating Margin
29%
Net Margin
20%
Country AU
Market Cap 135.6B USD
Operating Margin
42%
Net Margin
14%
Country AU
Market Cap 178.1B AUD
Operating Margin
29%
Net Margin
20%
Country CH
Market Cap 46.2B GBP
Operating Margin
2%
Net Margin
0%
Country MX
Market Cap 813.5B MXN
Operating Margin
41%
Net Margin
23%
Country SA
Market Cap 150B SAR
Operating Margin
18%
Net Margin
10%
Country UK
Market Cap 28.4B GBP
Operating Margin
22%
Net Margin
-6%
Country ZA
Market Cap 35.2B Zac
Operating Margin
13%
Net Margin
42%
Country IN
Market Cap 2.1T INR
Operating Margin
36%
Net Margin
27%
Country CA
Market Cap 24.5B USD
Operating Margin
21%
Net Margin
9%
Country CN
Market Cap 144.4B CNY
Operating Margin
13%
Net Margin
6%

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
Rio Tinto PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
Rio Tinto PLC
NYSE:RIO
102.1B USD
20%
11%
17%
14%
AU
BHP Group Ltd
NYSE:BHP
135.6B USD
18%
8%
27%
17%
AU
Rio Tinto Ltd
ASX:RIO
178.1B AUD
20%
11%
17%
14%
CH
Glencore PLC
LSE:GLEN
46.2B GBP
-1%
0%
6%
10%
MX
Grupo Mexico SAB de CV
BMV:GMEXICOB
813.5B MXN
18%
10%
19%
15%
SA
Saudi Arabian Mining Company SJSC
SAU:1211
150B SAR
6%
3%
5%
5%
UK
Anglo American PLC
LSE:AAL
28.4B GBP
-7%
-2%
11%
-5%
ZA
African Rainbow Minerals Ltd
JSE:ARI
35.2B Zac
10%
8%
3%
3%
IN
Hindustan Zinc Ltd
NSE:HINDZINC
2.1T INR
58%
23%
52%
37%
CA
Teck Resources Ltd
NYSE:TECK
24.5B USD
6%
3%
6%
4%
CN
CMOC Group Ltd
SSE:603993
144.4B CNY
22%
7%
21%
11%
Country UK
Market Cap 102.1B USD
ROE
20%
ROA
11%
ROCE
17%
ROIC
14%
Country AU
Market Cap 135.6B USD
ROE
18%
ROA
8%
ROCE
27%
ROIC
17%
Country AU
Market Cap 178.1B AUD
ROE
20%
ROA
11%
ROCE
17%
ROIC
14%
Country CH
Market Cap 46.2B GBP
ROE
-1%
ROA
0%
ROCE
6%
ROIC
10%
Country MX
Market Cap 813.5B MXN
ROE
18%
ROA
10%
ROCE
19%
ROIC
15%
Country SA
Market Cap 150B SAR
ROE
6%
ROA
3%
ROCE
5%
ROIC
5%
Country UK
Market Cap 28.4B GBP
ROE
-7%
ROA
-2%
ROCE
11%
ROIC
-5%
Country ZA
Market Cap 35.2B Zac
ROE
10%
ROA
8%
ROCE
3%
ROIC
3%
Country IN
Market Cap 2.1T INR
ROE
58%
ROA
23%
ROCE
52%
ROIC
37%
Country CA
Market Cap 24.5B USD
ROE
6%
ROA
3%
ROCE
6%
ROIC
4%
Country CN
Market Cap 144.4B CNY
ROE
22%
ROA
7%
ROCE
21%
ROIC
11%

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.

See Also

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