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Empire District Electric Co (Empire District Electric Co) Gross Margin % : 57.87% (As of Sep. 2016)


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What is Empire District Electric Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Empire District Electric Co's Gross Profit for the three months ended in Sep. 2016 was $101.5 Mil. Empire District Electric Co's Revenue for the three months ended in Sep. 2016 was $175.4 Mil. Therefore, Empire District Electric Co's Gross Margin % for the quarter that ended in Sep. 2016 was 57.87%.


The historical rank and industry rank for Empire District Electric Co's Gross Margin % or its related term are showing as below:


EDE's Gross Margin % is not ranked *
in the Utilities - Regulated industry.
Industry Median: 28.6
* Ranked among companies with meaningful Gross Margin % only.

Empire District Electric Co had a gross margin of 57.87% for the quarter that ended in Sep. 2016 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Empire District Electric Co was 0.00% per year.


Empire District Electric Co Gross Margin % Historical Data

The historical data trend for Empire District Electric Co'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.

Empire District Electric Co Gross Margin % Chart

Empire District Electric Co Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.53 47.60 41.55 38.75 41.97

Empire District Electric Co Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Gross Margin % Get a 7-Day Free Trial 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 55.49 13.65 51.59 72.02 57.87

Competitive Comparison of Empire District Electric Co's Gross Margin %

For the Utilities - Regulated Electric subindustry, Empire District Electric Co'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.


Empire District Electric Co's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Empire District Electric Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Empire District Electric Co's Gross Margin % falls into.



Empire District Electric Co Gross Margin % Calculation

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

Empire District Electric Co's Gross Margin for the fiscal year that ended in Dec. 2015 is calculated as

Gross Margin % (A: Dec. 2015 )=Gross Profit (A: Dec. 2015 ) / Revenue (A: Dec. 2015 )
=254.1 / 605.573
=(Revenue - Cost of Goods Sold) / Revenue
=(605.573 - 351.435) / 605.573
=41.97 %

Empire District Electric Co's Gross Margin for the quarter that ended in Sep. 2016 is calculated as


Gross Margin % (Q: Sep. 2016 )=Gross Profit (Q: Sep. 2016 ) / Revenue (Q: Sep. 2016 )
=101.5 / 175.354
=(Revenue - Cost of Goods Sold) / Revenue
=(175.354 - 73.88) / 175.354
=57.87 %

* 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.


Empire District Electric Co  (NYSE:EDE) 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

Empire District Electric Co had a gross margin of 57.87% for the quarter that ended in Sep. 2016 => 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.


Empire District Electric Co Gross Margin % Related Terms

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


Empire District Electric Co (Empire District Electric Co) Business Description

Traded in Other Exchanges
N/A
Address
Empire District Electric Co is a Kansas corporation organized in 1909. The Company is an operating public utility engaged in the generation, purchase, transmission, distribution and sale of electricity in parts of Missouri, Kansas, Oklahoma and Arkansas. The Company operates its businesses as three segments; Electric, Gas and Other. The Company also provides water service to three towns in Missouri. The Company, along with its subsidiary The Empire District Gas Company, is engaged in the distribution of natural gas in Missouri. The Other segment consists of fiber optics business. As of December 31, 2013 the Company's electric operations serve approximately 168,800 customers and gas operations serve approximately 44,000 customers. The territory served by electric operations embraces an area of about 10,000 square miles, located principally in southwestern Missouri, and also includes smaller areas in southeastern Kansas, northeastern Oklahoma and northwestern Arkansas. The Company supplies electric service at retail to 119 incorporated communities as of December 31, 2013, and to various unincorporated areas and at wholesale to four municipally owned distribution systems. The Company operates under franchises having original terms of twenty years or longer in the incorporated communities. The three largest classes of on-system customers are residential, commercial and industrial. The largest single on-system wholesale customer is the city of Monett, Missouri. The Company currently supplements its on-system generating capacity with purchases of capacity and energy from other sources in order to meet the demands of its customers and the capacity margins applicable under current pooling agreements and National Electric Reliability Council rules. The generating facilities consist of three coal-fired generating plants, two natural gas generating plants and one hydroelectric generating plant. The Company's gas operations serve customers in northwest, north central and west central Missouri. As of December 31, 2013, gas operations served approximately 44,000 customers. The Company provides natural gas distribution to 48 communities and 377 transportation customers as of December 31, 2013. At December 31, 2013 the principal gas utility properties of the Company consisted of approximately 87 miles of transmission mains and approximately 1,160 miles of distribution mains. The three pipelines that serve the Company's gas customers are Southern Star Central Gas Pipeline, Panhandle Eastern Pipe Line Company and ANR Pipeline Company. The Company is subject to the jurisdiction of the Missouri Public Service Commission (MPSC), the State Corporation Commission of the State of Kansas (KCC), the Corporation Commission of Oklahoma (OCC) and the Arkansas Public Service Commission (APSC) with respect to services and facilities, rates and charges, regulatory accounting, valuation of property, depreciation and various other matters.
Executives
Herbert J Schmidt director 1950 LAKE RIDGE DRIVE, THE VILLAGES FL 32162
Ross C Hartley director P O BOX 477 TENTON VILLAGE WY 83025
Thomas M Ohlmacher director P O BOX 1400, RAPID CITY SD 57709-1400
Bonnie Cruickshank Lind director 3460 PRESTON RIDGE ROAD, ALPHARETTA GA 30005
Francis E Jeffries director 800 SCUDDERS HILL ROAD, PLAINSBORO NJ 08536