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Nortel Inversora (BUE:NORT6) Gross Margin % : 87.50% (As of Sep. 2017)


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What is Nortel Inversora Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Nortel Inversora's Gross Profit for the three months ended in Sep. 2017 was ARS14,648 Mil. Nortel Inversora's Revenue for the three months ended in Sep. 2017 was ARS16,741 Mil. Therefore, Nortel Inversora's Gross Margin % for the quarter that ended in Sep. 2017 was 87.50%.

Warning Sign:

Nortel Inversora SA gross margin has been in long term decline. The average rate of decline per year is -1.2%.


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

BUE:NORT6' s Gross Margin % Range Over the Past 10 Years
Min: 45.2   Med: 85.58   Max: 91.81
Current: 88.31


During the past 13 years, the highest Gross Margin % of Nortel Inversora was 91.81%. The lowest was 45.20%. And the median was 85.58%.

BUE:NORT6's Gross Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 49.08 vs BUE:NORT6: 88.31

Nortel Inversora had a gross margin of 87.50% for the quarter that ended in Sep. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Nortel Inversora was -1.20% per year.


Nortel Inversora Gross Margin % Historical Data

The historical data trend for Nortel Inversora'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.

Nortel Inversora Gross Margin % Chart

Nortel Inversora Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 89.33 86.04 84.79 85.57 85.58

Nortel Inversora Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 85.86 86.77 90.21 88.69 87.50

Competitive Comparison of Nortel Inversora's Gross Margin %

For the Telecom Services subindustry, Nortel Inversora'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.


Nortel Inversora's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Nortel Inversora's Gross Margin % distribution charts can be found below:

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



Nortel Inversora Gross Margin % Calculation

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

Nortel Inversora's Gross Margin for the fiscal year that ended in Dec. 2016 is calculated as

Gross Margin % (A: Dec. 2016 )=Gross Profit (A: Dec. 2016 ) / Revenue (A: Dec. 2016 )
=45635 / 53322
=(Revenue - Cost of Goods Sold) / Revenue
=(53322 - 7687) / 53322
=85.58 %

Nortel Inversora's Gross Margin for the quarter that ended in Sep. 2017 is calculated as


Gross Margin % (Q: Sep. 2017 )=Gross Profit (Q: Sep. 2017 ) / Revenue (Q: Sep. 2017 )
=14648 / 16741
=(Revenue - Cost of Goods Sold) / Revenue
=(16741 - 2093) / 16741
=87.50 %

* 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.


Nortel Inversora  (BUE:NORT6) 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

Nortel Inversora had a gross margin of 87.50% for the quarter that ended in Sep. 2017 => 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.


Nortel Inversora Gross Margin % Related Terms

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Nortel Inversora (BUE:NORT6) Business Description

Traded in Other Exchanges
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Address
Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.

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