British American Tobacco Industries P.L.C. Adr(Bti) Financials: Net Profit Margin Compared To Industry Average, Plus Other Key Ratios

Company Report for BTI

Report - net profit margin

This chart shows the historical trend of net profit margin for BTI compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Net Profit Margin

Definition: Net profit margin shows how much profit remains after paying all costs — including operating expenses, interest, and taxes — for every dollar of sales. A higher margin means the business is efficient and keeps more of its sales as bottom-line profit. Falling margins may signal rising costs or pricing pressure.

Interpretation:
• In '2021', BTI's net profit margin was 26.5%, measuring the overall profitability of the company. Industry average for Medicinal Chemicals and Botanical Products in '2021' stood at -68.3%.
• In '2022', BTI's net profit margin was 24.1%, measuring the overall profitability of the company. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medicinal Chemicals and Botanical Products in '2022' stood at -135.1%. Industry average declined by 66.7% from previous year.
• In '2023', BTI's net profit margin was -52.7%, measuring the overall profitability of the company. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medicinal Chemicals and Botanical Products in '2023' stood at -120.1%. Industry average increased by 15.0% compared to previous year.
• In '2024', BTI's net profit margin was 11.9%, measuring the overall profitability of the company. The increase since '2023' reflects strengthening financial performance. Industry average for Medicinal Chemicals and Botanical Products in '2024' stood at -57.9%. Industry average increased by 62.2% compared to previous year.
Overall, BTI's net profit margin has been volatile but showed a downward trend over the past 4 years.

Formula: Net Profit Margin = Net Income / Revenue

Good Range: Ranges 5%-20% for many industries.