Gross Margin % is calculated as gross profit divided by its revenue. Chevron's Gross Profit for the
three
months ended in Dec. 2023 was $14,202 Mil. Chevron's Revenue for the
three
months ended in Dec. 2023 was $48,933 Mil. Therefore, Chevron's Gross Margin % for the quarter that ended in Dec. 2023 was 29.02%.
The historical rank and industry rank for Chevron's Gross Margin % or its related term are showing as below:
CVX'
s Gross Margin % Range Over the Past 10 Years
Min: 21.83 Med: 29.29 Max: 31.94
Current: 30.67
During the past 13 years, the highestGross Margin % of Chevron was 31.94%. The lowest was 21.83%. And the median was 29.29%.
CVX's Gross Margin % is ranked better than 53.74% of 923
companies
in the Oil & Gas industry
Industry Median: 27.87
vs CVX: 30.67
Chevron had a gross margin of 29.02% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chevron was 4.90% per year.
Chevron Gross Margin % Historical Data
The historical data trend for Chevron'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.
For the Oil & Gas Integrated subindustry, Chevron'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.
Chevron Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, Chevron's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chevron's Gross Margin % falls into.
* 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.
Chevron (NYSE:CVX) 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
Chevron had a gross margin of 29.02% 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.
Chevron Gross Margin % Related Terms
Thank you for viewing the detailed overview of Chevron's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chevron is an integrated energy company with exploration, production, and refining operations worldwide. It is the second-largest oil company in the United States with production of 3.0 million of barrels of oil equivalent a day, including 7.7 million cubic feet a day of natural gas and 1.7 million of barrels of liquids a day. Production activities take place in North America, South America, Europe, Africa, Asia, and Australia. Its refineries are in the U.S. and Asia for total refining capacity of 1.8 million barrels of oil a day. Proven reserves at year-end 2022 stood at 11.2 billion barrels of oil equivalent, including 6.1 billion barrels of liquids and 30.9 trillion cubic feet of natural gas.
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