Gross Margin % is calculated as gross profit divided by its revenue. Consolidated Edison's Gross Profit for the
three
months ended in Dec. 2023 was $1,738 Mil. Consolidated Edison's Revenue for the
three
months ended in Dec. 2023 was $3,444 Mil. Therefore, Consolidated Edison's Gross Margin % for the quarter that ended in Dec. 2023 was 50.46%.
The historical rank and industry rank for Consolidated Edison's Gross Margin % or its related term are showing as below:
ED'
s Gross Margin % Range Over the Past 10 Years
Min: 39.57 Med: 50.53 Max: 58.38
Current: 50.5
During the past 13 years, the highestGross Margin % of Consolidated Edison was 58.38%. The lowest was 39.57%. And the median was 50.53%.
ED's Gross Margin % is ranked better than 82.5% of 503
companies
in the Utilities - Regulated industry
Industry Median: 28.6
vs ED: 50.50
Consolidated Edison had a gross margin of 50.46% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Consolidated Edison was -0.90% per year.
Consolidated Edison Gross Margin % Historical Data
The historical data trend for Consolidated Edison'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.
Competitive Comparison of Consolidated Edison's Gross Margin %
For the Utilities - Regulated Electric subindustry, Consolidated Edison'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.
Consolidated Edison's Gross Margin % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Consolidated Edison's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Consolidated Edison'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.
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
Consolidated Edison had a gross margin of 50.46% for the quarter that ended in Dec. 2023 => 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.
Consolidated Edison Gross Margin % Related Terms
Thank you for viewing the detailed overview of Consolidated Edison's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Consolidated Edison (Consolidated Edison) Business Description
Con Ed is a holding company for Consolidated Edison of New York, or CECONY, and Orange & Rockland, or O&R. These utilities provide steam, natural gas, and electricity to customers in southeastern New York—including New York City—and small parts of New Jersey. The two utilities generate nearly all of Con Ed's earnings following the sale of its clean energy business to RWE in early 2023.
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