Continental AG (Continental AG) Gross Margin % : 21.16% (As of Dec. 2023)

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What is Continental AG Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Continental AG's Gross Profit for the three months ended in Dec. 2023 was $2,411 Mil. Continental AG's Revenue for the three months ended in Dec. 2023 was $11,394 Mil. Therefore, Continental AG's Gross Margin % for the quarter that ended in Dec. 2023 was 21.16%.

Warning Sign:

Continental AG gross margin has been in long-term decline. The average rate of decline per year is -4.1%.

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

CTTAY' s Gross Margin % Range Over the Past 10 Years
Min: 19.24 Med: 24.41 Max: 26.55
Current: 21.27

During the past 13 years, the highest Gross Margin % of Continental AG was 26.55%. The lowest was 19.24%. And the median was 24.41%.

CTTAY's Gross Margin % is ranked better than
56.83% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs CTTAY: 21.27

Continental AG had a gross margin of 21.16% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Continental AG was -4.10% per year.

Continental AG Gross Margin % Historical Data

The historical data trend for Continental AG'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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Continental AG Gross Margin % Chart

Continental AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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23.80

23.52

22.92

19.24

21.26

Continental AG 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															19.27	22.02	21.27	20.61	21.16

Competitive Comparison of Continental AG's Gross Margin %

For the Auto Parts subindustry, Continental AG'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.

Continental AG's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Continental AG's Gross Margin % distribution charts can be found below:

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

Continental AG Gross Margin % Calculation

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

Continental AG'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 )
	=	9605.2	/	45169.575
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(45169.575 - 35564.341)	/	45169.575
	=	21.26 %

Continental AG'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 )
	=	2410.9	/	11394.002
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(11394.002 - 8983.097)	/	11394.002
	=	21.16 %

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.

Continental AG (OTCPK:CTTAY) 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

Continental AG had a gross margin of 21.16% 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.

Continental AG Gross Margin % Related Terms

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Continental AG (Continental AG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Continental AG (OTCPK:CTTAY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CTTAF:USA CTT:Romania CON:Italy CONd:UK 0LQ1:UK CON:Germany

Address

Vahrenwalder Strasse 9, Hanover, NI, DEU, 30165

Website

https://www.continental.com

Continental is a global auto supplier and tiremaker. Operating segments include the automotive group (electrical architecture and networking, autonomous mobility, safety and motion, smart mobility, and user experience), tires, and ContiTech which uses rubber in industrial and automotive components and systems. Last year, automotive group revenue was around 48% of the total, tire was 35%, ContiTech was 16%, and contract manufacturing for Vitesco was 1%. Top five customers include Ford, Mercedes-Benz, the Renault-Nissan-Mitsubishi alliance, Stellantis, and Volkswagen, representing about 32% of total revenue. Europe, at 47% of total revenue, is the companies largest market, followed by North America at 27%, Asia (mostly China) at 22%, and 4% in other regions.