Drax Group (Drax Group) Gross Margin % : 27.43% (As of Dec. 2023)

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What is Drax Group Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Drax Group's Gross Profit for the six months ended in Dec. 2023 was $1,401 Mil. Drax Group's Revenue for the six months ended in Dec. 2023 was $5,107 Mil. Therefore, Drax Group's Gross Margin % for the quarter that ended in Dec. 2023 was 27.43%.

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

DRXGY' s Gross Margin % Range Over the Past 10 Years
Min: 9.99 Med: 15.14 Max: 24.04
Current: 24.04

During the past 13 years, the highest Gross Margin % of Drax Group was 24.04%. The lowest was 9.99%. And the median was 15.14%.

DRXGY's Gross Margin % is ranked worse than
64.38% of 393 companies
in the Utilities - Independent Power Producers industry
Industry Median: 34.68 vs DRXGY: 24.04

Drax Group had a gross margin of 27.43% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Drax Group was 5.60% per year.

Drax Group Gross Margin % Historical Data

The historical data trend for Drax Group'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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Drax Group Gross Margin % Chart

Drax Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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15.16

17.10

17.52

13.16

24.04

Drax Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															17.18	17.33	9.65	20.70	27.43

Competitive Comparison of Drax Group's Gross Margin %

For the Utilities - Renewable subindustry, Drax Group'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.

Drax Group's Gross Margin % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Drax Group's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Drax Group's Gross Margin % falls into.

Drax Group Gross Margin % Calculation

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

Drax Group'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 )
	=	2472.9	/	10285.19
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(10285.19 - 7812.279)	/	10285.19
	=	24.04 %

Drax Group'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 )
	=	1400.9	/	5107.468
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5107.468 - 3706.582)	/	5107.468
	=	27.43 %

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.

Drax Group (OTCPK:DRXGY) 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

Drax Group had a gross margin of 27.43% 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.

Drax Group Gross Margin % Related Terms

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Drax Group (Drax Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Drax Group PLC (OTCPK:DRXGY) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DRXGF:USA DRXl:UK DRX:UK D9F2:Germany

Address

Drax Power Station, Selby, North Yorkshire, GBR, YO8 8PH

Website

http://www.drax.com

Drax Group PLC is a UK-based renewable energy company engaged in renewable power generation, the production of sustainable biomass and the sale of renewable electricity to businesses. It operates a generation portfolio of sustainable biomass, hydro-electric and pumped hydro storage assets across four sites in England and Scotland. The company also operates a global bioenergy supply business with manufacturing facilities at around 13 sites in the United States and Canada, producing compressed wood pellets for its own use and for customers in Europe and Asia.