Switch to:
Grupo Aeroportuario del Sureste SAB de CV (NYSE:ASR)
Gross Margin
70.11% (As of Sep. 2014)

Gross Margin is calculated as gross profit divided by its revenue. Grupo Aeroportuario del Sureste SAB de CV's gross profit for the three months ended in Sep. 2014 was $76.5 Mil. Grupo Aeroportuario del Sureste SAB de CV's revenue for the three months ended in Sep. 2014 was $109.1 Mil. Therefore, Grupo Aeroportuario del Sureste SAB de CV's Gross Margin for the quarter that ended in Sep. 2014 was 70.11%.

Warning Sign:

Grupo Aeroportuario del Sureste SAB de CV gross margin has been in long term decline. The average rate of decline per year is -3.4%.

ASR' s 10-Year Gross Margin Range
Min: 52.96   Max: 76.7
Current: 71.54

52.96
76.7

During the past 13 years, the highest Gross Margin of Grupo Aeroportuario del Sureste SAB de CV was 76.70%. The lowest was 52.96%. And the median was 73.66%.

ASR's Gross Marginis ranked lower than
100% of the Companies
in the Global Airports & Air Services industry.

( Industry Median: vs. ASR: 71.54 )

Grupo Aeroportuario del Sureste SAB de CV had a gross margin of 70.11% for the quarter that ended in Sep. 2014 => Durable competitive advantage

The 3-Year average Growth Rate of Gross Margin for Grupo Aeroportuario del Sureste SAB de CV was -3.40% per year.


Definition

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

Grupo Aeroportuario del Sureste SAB de CV's Gross Margin for the fiscal year that ended in Dec. 2013 is calculated as

Gross Margin (A: Dec. 2013 )=Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 )
=292.3 / 411.895779761
=(Revenue - Cost of Goods Sold) / Revenue
=(411.895779761 - 119.630388746) / 411.895779761
=70.96 %

Grupo Aeroportuario del Sureste SAB de CV's Gross Margin for the quarter that ended in Sep. 2014 is calculated as

Gross Margin (Q: Sep. 2014 )=Gross Profit (Q: Sep. 2014 ) / Revenue (Q: Sep. 2014 )
=76.5 / 109.050113135
=(Revenue - Cost of Goods Sold) / Revenue
=(109.050113135 - 32.5965354798) / 109.050113135
=70.11 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Grupo Aeroportuario del Sureste SAB de CV had a gross margin of 70.11% for the quarter that ended in Sep. 2014 => Durable 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Grupo Aeroportuario del Sureste SAB de CV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross Margin 76.3574.0172.3173.3174.4374.8260.1064.5952.9670.96

Grupo Aeroportuario del Sureste SAB de CV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Gross Margin 68.7067.563.0577.6473.9272.3360.9579.6776.4170.11
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK