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Devon Energy (Devon Energy) Gross Margin %

: 39.64% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. Devon Energy's Gross Profit for the three months ended in Dec. 2023 was $1,643 Mil. Devon Energy's Revenue for the three months ended in Dec. 2023 was $4,145 Mil. Therefore, Devon Energy's Gross Margin % for the quarter that ended in Dec. 2023 was 39.64%.


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

DVN' s Gross Margin % Range Over the Past 10 Years
Min: 1.7   Med: 21.12   Max: 45.47
Current: 35.18


During the past 13 years, the highest Gross Margin % of Devon Energy was 45.47%. The lowest was 1.70%. And the median was 21.12%.

DVN's Gross Margin % is ranked better than
59.2% of 924 companies
in the Oil & Gas industry
Industry Median: 27.905 vs DVN: 35.18

Devon Energy had a gross margin of 39.64% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Devon Energy was 22.50% per year.


Devon Energy Gross Margin % Historical Data

The historical data trend for Devon Energy'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 11.48 [6] => 8.12 [7] => 30.14 [8] => 43.66 [9] => 35.17 )
Devon Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.48 8.12 30.14 43.66 35.17

Devon Energy Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % 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 Premium Member Only Premium Member Only Premium Member Only 40.20 36.88 30.28 33.06 39.64

Competitive Comparison

For the Oil & Gas E&P subindustry, Devon Energy'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.


Devon Energy Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Devon Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Devon Energy's Gross Margin % falls into.



Devon Energy Gross Margin % Calculation

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

Devon Energy'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 )
=5367 / 15258
=(Revenue - Cost of Goods Sold) / Revenue
=(15258 - 9891) / 15258
=35.17 %

Devon Energy'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 )
=1643 / 4145
=(Revenue - Cost of Goods Sold) / Revenue
=(4145 - 2502) / 4145
=39.64 %

* 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.


Devon Energy  (NYSE:DVN) 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

Devon Energy had a gross margin of 39.64% 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.


Devon Energy Gross Margin % Related Terms

Thank you for viewing the detailed overview of Devon Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Devon Energy (Devon Energy) Business Description

Address
333 West Sheridan Avenue, Oklahoma, OK, USA, 73102-5015
Devon Energy, based in Oklahoma City, is one of the largest independent exploration and production companies in North America. The firm's asset base is spread throughout onshore North America and includes exposure to the Delaware, STACK, Eagle Ford, Powder River Basin, and Bakken plays. At year-end 2022, Devon's proved reserves totaled 1.8 billion barrels of oil equivalent, and net production that year was 611 thousand boe/d, of which oil and natural gas liquids made up 73% of production, with natural gas accounting for the remainder.
Executives
Dennis C Cameron officer: EVP and General Counsel DEVON ENERGY, 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Clay M Gaspar officer: EVP and COO 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Richard E Muncrief director, officer: President and CEO 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
John E Bethancourt director 6001 BOLLINGER CANYON ROAD, SAN RAMON CA 94583
Michael N Mears director ONE WILLIAMS CENTER, MD 28-1, TULSA OK 74172
Gennifer F. Kelly director 1702 COMMERCE WAY, BRENTWOOD TN 37027
Valerie Williams director C/O OMNICOM GROUP INC., 280 PARK AVENUE, NEW YORK NY 10017
Ann G Fox director 2001 KIRBY DRIVE, SUITE 200, HOUSTON TX 77019
Kelt Kindick director DEVON ENERGY CORP, 333 W SHERIDAN AVE, OKLAHOMA CITY OK 73102
Jeffrey L Ritenour officer: EVP & CHIEF FINANCIAL OFFICER 333 W. SHERIDAN AVENUE, OKLAHOMA CITY OK 73102
Jeremy D. Humphers officer: SVP Chief Accounting Officer 333 WEST SHERIDAN AVENUE, OKLAHOMA CITY OK 73102-5015
Tana K Cashion officer: SVP Human Resources and Admin 333 W. SHERIDAN AVENUE, OKLAHOMA CITY OK 73102
Felix Investments Holdings Ii, Llc director, 10 percent owner 1530 16TH STREET, SUITE 500, DENVER CO 80202
Encap Energy Capital Fund X, L.p. director, 10 percent owner 9651 KATY FREEWAY, SUITE 600, HOUSTON TX 77024
Karl F Kurz director DEVON ENERGY CORP., 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102

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