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British American Tobacco ROA %

: 4.83% (As of Jun. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. British American Tobacco's annualized Net Income for the quarter that ended in Jun. 2021 was $9,116 Mil. British American Tobacco's average Total Assets over the quarter that ended in Jun. 2021 was $188,603 Mil. Therefore, British American Tobacco's annualized ROA % for the quarter that ended in Jun. 2021 was 4.83%.

The historical rank and industry rank for British American Tobacco's ROA % or its related term are showing as below:

NYSE:BTI' s ROA % Range Over the Past 10 Years
Min: 3.97   Med: 12.39   Max: 41.46
Current: 4.35

3.97
41.46

During the past 13 years, British American Tobacco's highest ROA % was 41.46%. The lowest was 3.97%. And the median was 12.39%.

NYSE:BTI's ROA % is ranked higher than
77% of the 13 Companies
in the Tobacco Products industry.

( Industry Median: 7.83 vs. NYSE:BTI: 4.35 )

British American Tobacco ROA % Historical Data

The historical data trend for British American Tobacco's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

British American Tobacco Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.99 42.10 4.08 4.04 4.65

British American Tobacco Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.83 4.07 4.60 4.21 4.83

Competitive Comparison

For the Tobacco subindustry, British American Tobacco's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

British American Tobacco ROA % Distribution

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's ROA % distribution charts can be found below:

* The bar in red indicates where British American Tobacco's ROA % falls into.



British American Tobacco ROA % Calculation

British American Tobacco's annualized ROA % for the fiscal year that ended in Dec. 2020 is calculated as:

ROA %=Net Income (A: Dec. 2020 )/( (Total Assets (A: Dec. 2019 )+Total Assets (A: Dec. 2020 ))/ count )
=8602.1505376344/( (184803.40760157+185067.20430108)/ 2 )
=8602.1505376344/184935.30595132
=4.65 %

British American Tobacco's annualized ROA % for the quarter that ended in Jun. 2021 is calculated as:

ROA %=Net Income (Q: Jun. 2021 )/( (Total Assets (Q: Dec. 2020 )+Total Assets (Q: Jun. 2021 ))/ count )
=9116.4095371669/( (185067.20430108+192138.84992987)/ 2 )
=9116.4095371669/188603.02711547
=4.83 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is two times the semi-annual (Jun. 2021) net income data. ROA % is displayed in the 30-year financial page.


British American Tobacco  (NYSE:BTI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2021 )
=Net Income/Total Assets
=9116.4095371669/188603.02711547
=(Net Income / Revenue)*(Revenue / Total Assets)
=(9116.4095371669 / 34151.472650771)*(34151.472650771 / 188603.02711547)
=Net Margin %*Asset Turnover
=26.69 %*0.1811
=4.83 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2021) net income data. The Revenue data used here is two times the semi-annual (Jun. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


British American Tobacco ROA % Related Terms

Thank you for viewing the detailed overview of British American Tobacco's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


British American Tobacco Business Description

British American Tobacco logo
Industry
Address
Globe House, 4 Temple Place, London, GBR, WC2R 2PG
Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on volumes. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, including its Vype brand, heated tobacco, with Glo, as well as roll- your-own and smokeless tobacco products. The company holds 31% of ITC Limited, the leading Indian cigarette-maker.

British American Tobacco Headlines

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