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:
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