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British American Tobacco Operating Margin %

: 40.31% (As of Jun. 2021)
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Operating Margin % is calculated as Operating Income divided by its Revenue. British American Tobacco's Operating Income for the six months ended in Jun. 2021 was $6,884 Mil. British American Tobacco's Revenue for the six months ended in Jun. 2021 was $17,076 Mil. Therefore, British American Tobacco's Operating Margin % for the quarter that ended in Jun. 2021 was 40.31%.

Good Sign:

British American Tobacco PLC operating margin is expanding. Margin expansion is usually a good sign.

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

NYSE:BTI' s Operating Margin % Range Over the Past 10 Years
Min: 31.09   Med: 35.45   Max: 38.66
Current: 38.06

31.09
38.66

NYSE:BTI's Operating Margin % is ranked higher than
85% of the 13 Companies
in the Tobacco Products industry.

( Industry Median: 15.71 vs. NYSE:BTI: 38.06 )

British American Tobacco's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.

British American Tobacco's Operating Income for the six months ended in Jun. 2021 was $6,884 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2021 was $13,425 Mil.


British American Tobacco Operating Margin % Historical Data

The historical data trend for British American Tobacco's Operating Margin % 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
Operating Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.23 34.43 38.53 35.67 38.66

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
Operating Margin % 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 35.99 35.38 41.55 36.04 40.31

Competitive Comparison

For the Tobacco subindustry, British American Tobacco's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % Distribution

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

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



British American Tobacco Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

British American Tobacco's Operating Margin % for the fiscal year that ended in Dec. 2020 is calculated as

Operating Margin %=Operating Income (A: Dec. 2020 ) / Revenue (A: Dec. 2020 )
=13393.817204301 / 34645.161290323
=38.66 %

British American Tobacco's Operating Margin % for the quarter that ended in Jun. 2021 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2021 ) / Revenue (Q: Jun. 2021 )
=6883.5904628331 / 17075.736325386
=40.31 %

* 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.


British American Tobacco  (NYSE:BTI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


British American Tobacco Operating Margin % Related Terms

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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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