British Operating Income vs Ebit Analysis

BTI Stock  USD 41.62  0.52  1.27%   
British Amer financial indicator trend analysis is way more than just evaluating British American Tobacco prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether British American Tobacco is a good investment. Please check the relationship between British Amer Operating Income and its Ebit accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Operating Income vs Ebit

Operating Income vs Ebit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of British American Tobacco Operating Income account and Ebit. At this time, the significance of the direction appears to have significant contrarian relationship.
The correlation between British Amer's Operating Income and Ebit is -0.21. Overlapping area represents the amount of variation of Operating Income that can explain the historical movement of Ebit in the same time period over historical financial statements of British American Tobacco, assuming nothing else is changed. The correlation between historical values of British Amer's Operating Income and Ebit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Operating Income of British American Tobacco are associated (or correlated) with its Ebit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Ebit has no effect on the direction of Operating Income i.e., British Amer's Operating Income and Ebit go up and down completely randomly.

Correlation Coefficient

-0.21
Relationship DirectionNegative 
Relationship StrengthInsignificant

Operating Income

Operating Income is the amount of profit realized from British American Tobacco operations after accounting for operating expenses such as cost of goods sold (COGS), wages and depreciation. Operating income takes the gross income and subtracts other operating expenses and then removes depreciation. Operating Income of British American Tobacco is typically a synonym for earnings before interest and taxes (EBIT) and is also commonly referred to as operating profit or recurring profit. Earnings before interest and taxes (EBIT), representing the amount of profit a company generates from its operations.

Ebit

Most indicators from British Amer's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into British American Tobacco current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
As of now, British Amer's Enterprise Value Multiple is decreasing as compared to previous years.
 2022 2023 2024 2025 (projected)
Interest Expense1.7B1.9B2.2B2.3B
Depreciation And Amortization724M634M729.1M658.9M

British Amer fundamental ratios Correlations

0.99-0.170.871.00.890.990.990.90.791.00.910.830.20.870.631.00.740.140.061.00.790.790.810.420.99
0.99-0.080.870.970.881.00.960.920.760.980.880.790.130.860.591.00.770.210.161.00.760.80.820.380.96
-0.17-0.08-0.06-0.22-0.07-0.08-0.24-0.110.0-0.17-0.25-0.17-0.12-0.32-0.56-0.10.190.730.26-0.11-0.44-0.03-0.02-0.32-0.2
0.870.87-0.060.860.980.870.850.840.830.870.770.870.180.860.410.870.920.150.090.870.620.950.920.270.84
1.00.97-0.220.860.880.971.00.880.791.00.920.840.240.860.650.980.70.10.00.980.790.770.790.450.99
0.890.88-0.070.980.880.880.880.840.840.890.810.860.180.880.370.890.920.160.050.890.590.920.90.260.87
0.991.0-0.080.870.970.880.960.920.750.980.880.780.130.850.591.00.760.210.171.00.760.790.830.380.95
0.990.96-0.240.851.00.880.960.860.780.990.910.840.260.850.640.980.70.07-0.040.980.780.760.790.460.99
0.90.92-0.110.840.880.840.920.860.730.890.80.76-0.210.920.60.90.780.180.120.920.810.810.720.090.82
0.790.760.00.830.790.840.750.780.730.790.760.960.110.70.290.780.820.03-0.10.780.50.850.690.110.78
1.00.98-0.170.871.00.890.980.990.890.790.920.830.220.860.620.990.730.150.060.990.770.780.810.430.99
0.910.88-0.250.770.920.810.880.910.80.760.920.810.210.820.60.90.620.080.030.890.730.70.70.410.93
0.830.79-0.170.870.840.860.780.840.760.960.830.810.20.790.520.820.76-0.02-0.140.810.670.90.680.280.82
0.20.13-0.120.180.240.180.130.26-0.210.110.220.210.2-0.070.080.180.030.04-0.130.15-0.060.090.230.780.32
0.870.86-0.320.860.860.880.850.850.920.70.860.820.79-0.070.650.850.710.060.070.860.810.820.730.250.82
0.630.59-0.560.410.650.370.590.640.60.290.620.60.520.080.650.590.14-0.15-0.080.60.930.440.280.530.6
1.01.0-0.10.870.980.891.00.980.90.780.990.90.820.180.850.590.760.20.111.00.750.790.810.410.98
0.740.770.190.920.70.920.760.70.780.820.730.620.760.030.710.140.760.280.090.770.40.90.820.020.68
0.140.210.730.150.10.160.210.070.180.030.150.08-0.020.040.06-0.150.20.280.390.19-0.110.110.080.010.12
0.060.160.260.090.00.050.17-0.040.12-0.10.060.03-0.14-0.130.07-0.080.110.090.390.12-0.080.060.230.030.03
1.01.0-0.110.870.980.891.00.980.920.780.990.890.810.150.860.61.00.770.190.120.770.80.820.390.97
0.790.76-0.440.620.790.590.760.780.810.50.770.730.67-0.060.810.930.750.4-0.11-0.080.770.640.490.360.73
0.790.8-0.030.950.770.920.790.760.810.850.780.70.90.090.820.440.790.90.110.060.80.640.80.20.73
0.810.82-0.020.920.790.90.830.790.720.690.810.70.680.230.730.280.810.820.080.230.820.490.80.30.79
0.420.38-0.320.270.450.260.380.460.090.110.430.410.280.780.250.530.410.020.010.030.390.360.20.30.49
0.990.96-0.20.840.990.870.950.990.820.780.990.930.820.320.820.60.980.680.120.030.970.730.730.790.49
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British Amer Account Relationship Matchups

British Amer fundamental ratios Accounts

202020212022202320242025 (projected)
Total Assets137.7B137.4B153.5B118.7B136.5B143.3B
Short Long Term Debt Total44.0B39.7B43.1B39.7B45.7B48.0B
Other Current Liab876M696M1.9B657M755.6M717.8M
Total Current Liabilities15.5B15.1B17.9B15.7B18.0B9.7B
Total Stockholder Equity62.7B67.1B75.4B52.6B60.5B63.5B
Property Plant And Equipment Net5.1B5.0B4.9B4.6B5.3B3.4B
Net Debt40.8B36.8B39.7B37.4B43.0B45.1B
Retained Earnings42.0B44.2B44.1B31.6B36.4B38.2B
Accounts Payable9.7B9.6B10.4B9.7B11.2B11.7B
Cash3.1B2.8B3.4B2.4B2.7B2.1B
Non Current Assets Total124.1B124.6B138.1B104.5B120.2B126.2B
Non Currrent Assets Other1.6B1.8B2.0B1.4B1.6B1.7B
Cash And Short Term Investments3.4B3.3B4.0B3.0B3.4B2.3B
Common Stock Shares Outstanding2.3B2.3B2.3B2.2B2.6B2.2B
Short Term Investments242M456M579M601M691.2M725.7M
Liabilities And Stockholders Equity137.7B137.4B153.5B118.7B136.5B143.3B
Non Current Liabilities Total59.3B54.8B60.0B50.1B57.6B60.5B
Inventory6.0B5.3B5.7B4.9B5.7B3.9B
Other Current Assets433M195M1.2B2.5B2.9B2.1B
Other Stockholder Equity(5.2B)(66.3B)(7.0B)20.3B18.3B19.2B
Total Liab74.7B70.0B77.8B65.8B75.6B79.4B
Property Plant And Equipment Gross5.1B9.0B9.5B9.0B10.4B10.9B
Total Current Assets13.6B12.8B15.4B14.2B16.3B9.3B
Accumulated Other Comprehensive Income(6.5B)(4.2B)4.1B27.3B31.4B33.0B
Short Term Debt4.0B4.0B4.4B4.3B5.0B2.9B
Intangible Assets72.0B72.4B81.1B54.5B62.6B65.8B
Other Liab20.2B19.3B19.2B21.3B24.4B25.7B
Long Term Debt39.9B35.7B38.4B35.0B40.3B22.1B
Net Receivables3.8B4.1B4.5B3.8B4.4B2.5B
Good Will43.3B43.2B48.0B41.1B47.3B25.4B
Property Plant Equipment5.5B5.1B5.0B4.9B4.4B3.9B
Other Assets2.1B2.5B2.7B2.5B2.9B2.0B
Treasury Stock(5.2B)(5.3B)(5.2B)(5.1B)(4.6B)(4.8B)
Net Tangible Assets(55.0B)(52.8B)(48.5B)(53.7B)(48.3B)(50.8B)
Short Long Term Debt3.9B3.9B4.3B4.2B3.8B3.6B
Long Term Debt Total37.8B39.9B35.7B38.7B44.5B37.2B

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When determining whether British American Tobacco offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of British Amer's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of British American Tobacco Stock. Outlined below are crucial reports that will aid in making a well-informed decision on British American Tobacco Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in British American Tobacco. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.
You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Is Tobacco space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of British Amer. If investors know British will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about British Amer listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.138
Dividend Share
2.332
Earnings Share
(7.93)
Revenue Per Share
2.3524
Quarterly Revenue Growth
(0.08)
The market value of British American Tobacco is measured differently than its book value, which is the value of British that is recorded on the company's balance sheet. Investors also form their own opinion of British Amer's value that differs from its market value or its book value, called intrinsic value, which is British Amer's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because British Amer's market value can be influenced by many factors that don't directly affect British Amer's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between British Amer's value and its price as these two are different measures arrived at by different means. Investors typically determine if British Amer is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British Amer's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.