Gross Margin % is calculated as gross profit divided by its revenue. TechnipFMC's Gross Profit for the
three
months ended in Dec. 2023 was $356 Mil. TechnipFMC's Revenue for the
three
months ended in Dec. 2023 was $2,078 Mil. Therefore, TechnipFMC's Gross Margin % for the quarter that ended in Dec. 2023 was 17.15%.
Warning Sign:
TechnipFMC PLC gross margin has been in long-term decline. The average rate of decline per year is -2.1%.
The historical rank and industry rank for TechnipFMC's Gross Margin % or its related term are showing as below:
FTI'
s Gross Margin % Range Over the Past 10 Years
Min: 10.64 Med: 14.9 Max: 18.16
Current: 16.28
During the past 13 years, the highestGross Margin % of TechnipFMC was 18.16%. The lowest was 10.64%. And the median was 14.90%.
FTI's Gross Margin % is ranked worse than 65.33% of 923
companies
in the Oil & Gas industry
Industry Median: 27.87
vs FTI: 16.28
TechnipFMC had a gross margin of 17.15% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for TechnipFMC was -2.10% per year.
TechnipFMC Gross Margin % Historical Data
The historical data trend for TechnipFMC'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 Equipment & Services subindustry, TechnipFMC'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.
TechnipFMC Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, TechnipFMC's Gross Margin % distribution charts can be found below:
* The bar in red indicates where TechnipFMC'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.
TechnipFMC (NYSE:FTI) 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
TechnipFMC had a gross margin of 17.15% for the quarter that ended in Dec. 2023 => No sustainable 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.
TechnipFMC Gross Margin % Related Terms
Thank you for viewing the detailed overview of TechnipFMC's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
TechnipFMC is the largest pure-play offshore service provider, offering integrated deep-water offshore oil and gas development solutions that span the full spectrum of subsea equipment and subsea engineering and construction services. The company also provides various surface equipment used with onshore oil and gas wells. TechnipFMC originated with the 2017 merger of predecessor companies Technip and FMC Technologies.
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