Aug 14, 2013

Tobacco Products Have Some Pretty Fat Profit Margins
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Written by : Tom George| 0 | Fashion

cigarette margins

Ever wonder how cigarette companies can still be in business despite all those seemingly crippling excise taxes and legal settlements? 

 A chart from Morgan Stanley helps explain.

It shows which packaged consumer goods enjoy the highest operating margins — or the ratio of operating income to overall sales.

This is a function of how much you can sell a good for versus how much that good costs to produce including any fixed costs.At the top of the food chain: moist, smokeless tobacco (aka dip or chew) at 61%, followed by cigarettes at 41%.Check it out: Morgan Stanley

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Tom George

Founder and CEO of Internet Billboards. A futurist and serial entrepreneur, as well as a professional fitness trainer, martial artist, and business strategist. Helped to develop inbound advertising. An avid content curator who enjoys finding those digital gems out there in cyberspace and sharing them with others.
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Content Curator

Tom George

Founder and CEO of Internet Billboards. A futurist and serial entrepreneur, as well as a professional fitness trainer, martial artist, and business strategist. Helped to develop inbound advertising. An avid content curator who enjoys finding those digital gems out there in cyberspace and sharing them with others.

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