Alcoa (AAPRB.PFD) Gross Margin % : 19.11% (As of Sep. 2016)

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What is Alcoa Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Alcoa's Gross Profit for the three months ended in Sep. 2016 was $996.00 Mil. Alcoa's Revenue for the three months ended in Sep. 2016 was $5,213.00 Mil. Therefore, Alcoa's Gross Margin % for the quarter that ended in Sep. 2016 was 19.11%.

The historical rank and industry rank for Alcoa's Gross Margin % or its related term are showing as below:

AAPRB.PFD' s Gross Margin % Range Over the Past 10 Years
Min: 8.34 Med: 18.1 Max: 23.24
Current: 18.46

During the past 13 years, the highest Gross Margin % of Alcoa was 23.24%. The lowest was 8.34%. And the median was 18.10%.

AAPRB.PFD's Gross Margin % is not ranked
in the Metals & Mining industry.
Industry Median: 19.4 vs AAPRB.PFD: 18.46

Alcoa had a gross margin of 19.11% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Alcoa was 2.60% per year.

Alcoa Gross Margin % Historical Data

The historical data trend for Alcoa's Gross Margin % can be seen below:

* 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.

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Alcoa Gross Margin % Chart

Alcoa Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Gross Margin %

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17.92

13.92

16.26

19.95

19.81

Alcoa Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Gross Margin %	Get a 7-Day Free Trial															18.19	16.03	18.31	20.38	19.11

Competitive Comparison of Alcoa's Gross Margin %

For the Aluminum subindustry, Alcoa's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.

Alcoa's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Alcoa's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Alcoa's Gross Margin % falls into.

Alcoa Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Alcoa's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )	=	Gross Profit (A: Dec. 2015 )	/	Revenue (A: Dec. 2015 )
	=	4465	/	22534
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(22534 - 18069)	/	22534
	=	19.81 %

Alcoa's Gross Margin for the quarter that ended in Sep. 2016 is calculated as

Gross Margin % (Q: Sep. 2016 )	=	Gross Profit (Q: Sep. 2016 )	/	Revenue (Q: Sep. 2016 )
	=	996	/	5213
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5213 - 4217)	/	5213
	=	19.11 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Alcoa (NYSE:AAPRB.PFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Alcoa had a gross margin of 19.11% for the quarter that ended in Sep. 2016 => No sustainable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Alcoa Gross Margin % Related Terms

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Alcoa (AAPRB.PFD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Alcoa Inc (NYSE:AAPRB.PFD) » Definitions » Gross Margin %

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Address

Website

https://www.arconic.com

Arconic Inc, formerly known as Alcoa Inc was first incorporated as the Pittsburgh Reduction Company on October 1, 1888. The Company is engaged in manufacturing and engineering lightweight metals. Its products include aluminum, titanium, and nickel, used in aerospace, automotive, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications. The Company is also engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its active participation in all aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. It has investments and operating activities in, among others, Australia, Brazil, China, Guinea, Iceland, Russia, and Saudi Arabia. The Company operates in segments including Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. The Company's Global Rolled Products segment represents its midstream operations. The Engineered Products and Solutions segment represents a portion of the Company's downstream operations. Its downstream portfolio includes two segments Engineered Products and Solutions and Transportation and Construction Solutions. The Engineered Products and Solutions consist of Alcoa Titanium & Engineered Products; Alcoa Fastening Systems & Rings; Alcoa Forgings and Extrusions; and Alcoa Power and Propulsion. The Company's Transportation and Construction Solutions segment represents a portion of its downstream operations. The raw materials used includes bauxite, alloying materials, caustic soda, alumina, electricity, aluminum fluoride, fuel oil, calcined petroleum coke, lime (CaO), cathode blocks, natural gas, electricity, liquid pitch, natural gas, titanium alloys, titanium sponge and resin. The Company's trademark products include Howmet metal castings, Huck fasteners, Kawneer building panels and Dura-Bright wheels with easy-clean surface treatments.