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Caribbean Utilities Co (Caribbean Utilities Co) Gross Margin % : 35.66% (As of Dec. 2023)


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What is Caribbean Utilities Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Caribbean Utilities Co's Gross Profit for the three months ended in Dec. 2023 was $26.6 Mil. Caribbean Utilities Co's Revenue for the three months ended in Dec. 2023 was $74.7 Mil. Therefore, Caribbean Utilities Co's Gross Margin % for the quarter that ended in Dec. 2023 was 35.66%.

Warning Sign:

Caribbean Utilities Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -2.8%.


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

CUPUF' s Gross Margin % Range Over the Past 10 Years
Min: 27.82   Med: 39.92   Max: 46.54
Current: 36.51


During the past 13 years, the highest Gross Margin % of Caribbean Utilities Co was 46.54%. The lowest was 27.82%. And the median was 39.92%.

CUPUF's Gross Margin % is ranked better than
65.27% of 501 companies
in the Utilities - Regulated industry
Industry Median: 28.81 vs CUPUF: 36.51

Caribbean Utilities Co had a gross margin of 35.66% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Caribbean Utilities Co was -2.80% per year.


Caribbean Utilities Co Gross Margin % Historical Data

The historical data trend for Caribbean Utilities Co'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.

* Premium members only.

Caribbean Utilities Co Gross Margin % Chart

Caribbean Utilities Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.20 46.54 43.77 33.82 36.51

Caribbean Utilities Co Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.86 31.17 39.16 40.10 35.66

Competitive Comparison of Caribbean Utilities Co's Gross Margin %

For the Utilities - Regulated Electric subindustry, Caribbean Utilities Co'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.


Caribbean Utilities Co's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Caribbean Utilities Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Caribbean Utilities Co's Gross Margin % falls into.



Caribbean Utilities Co Gross Margin % Calculation

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

Caribbean Utilities Co's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=104.9 / 287.225
=(Revenue - Cost of Goods Sold) / Revenue
=(287.225 - 182.351) / 287.225
=36.51 %

Caribbean Utilities Co's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=26.6 / 74.703
=(Revenue - Cost of Goods Sold) / Revenue
=(74.703 - 48.065) / 74.703
=35.66 %

* 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.

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.


Caribbean Utilities Co  (OTCPK:CUPUF) 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

Caribbean Utilities Co had a gross margin of 35.66% for the quarter that ended in Dec. 2023 => Competition eroding margins


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.


Caribbean Utilities Co Gross Margin % Related Terms

Thank you for viewing the detailed overview of Caribbean Utilities Co's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Caribbean Utilities Co (Caribbean Utilities Co) Business Description

Traded in Other Exchanges
Address
457 North Sound Road, P.O. Box 38, Grand Cayman, CYM, KY1-1101
Caribbean Utilities Co Ltd is the sole supplier of electricity on Grand Cayman with a total installed generating capacity of 166 MW, nine transformer substations, approximately 552 miles of land-based high voltage transmission and distribution lines and 15 miles of high-voltage submarine cable. The Company uses diesel generation to produce electricity for Grand Cayman.

Caribbean Utilities Co (Caribbean Utilities Co) Headlines