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ITC (NSE:ITC) Profitability Rank : 10 (As of Dec. 2023)


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What is ITC Profitability Rank?

ITC has the Profitability Rank of 10. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

ITC's Operating Margin % for the quarter that ended in Dec. 2023 was 33.82%. As of today, ITC's Piotroski F-Score is 6.


Competitive Comparison of ITC's Profitability Rank

For the Tobacco subindustry, ITC's Profitability Rank, along with its competitors' market caps and Profitability Rank 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.


ITC's Profitability Rank Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, ITC's Profitability Rank distribution charts can be found below:

* The bar in red indicates where ITC's Profitability Rank falls into.



ITC Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

ITC has the Profitability Rank of 10. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

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.

ITC's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=60443.7 / 178727.1
=33.82 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

ITC has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

ITC Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -2.1%.

4. Consistency of the profitability

5. Predictability Rank


ITC Profitability Rank Related Terms

Thank you for viewing the detailed overview of ITC's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


ITC (NSE:ITC) Business Description

Traded in Other Exchanges
Address
37 Jawaharlal Nehru Road, Virginia House, Kolkata, WB, IND, 700 071
ITC Ltd is an Indian conglomerate that primarily operates in the consumer goods space, particularly cigarettes. The company operates in four main business segments: Fast Moving Consumer Goods; Hotels; Paperboards, Paper, and Packaging; and Agri-Business. Roughly three-quarters of the company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.

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