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NorthWestern Energy Group (NorthWestern Energy Group) Gross Margin %

: 56.51% (As of Dec. 2023)
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Gross Margin % is calculated as gross profit divided by its revenue. NorthWestern Energy Group's Gross Profit for the three months ended in Dec. 2023 was $201 Mil. NorthWestern Energy Group's Revenue for the three months ended in Dec. 2023 was $356 Mil. Therefore, NorthWestern Energy Group's Gross Margin % for the quarter that ended in Dec. 2023 was 56.51%.

Warning Sign:

NorthWestern Energy Group Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.


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

NWE' s Gross Margin % Range Over the Past 10 Years
Min: 51.72   Med: 59.03   Max: 77.11
Current: 54.94


During the past 13 years, the highest Gross Margin % of NorthWestern Energy Group was 77.11%. The lowest was 51.72%. And the median was 59.03%.

NWE's Gross Margin % is ranked better than
86.48% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs NWE: 54.94

NorthWestern Energy Group had a gross margin of 56.51% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for NorthWestern Energy Group was -5.90% per year.


NorthWestern Energy Group Gross Margin % Historical Data

The historical data trend for NorthWestern Energy 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.

* Premium members only.

NorthWestern Energy Group 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 58.10 57.52 53.81 51.72 54.94

NorthWestern Energy Group 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 49.76 51.30 57.86 55.72 56.51

Competitive Comparison

For the Utilities - Diversified subindustry, NorthWestern Energy 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.


NorthWestern Energy Group Gross Margin % Distribution

For the Utilities - Regulated industry and Utilities sector, NorthWestern Energy Group's Gross Margin % distribution charts can be found below:

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



NorthWestern Energy Group Gross Margin % Calculation

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

NorthWestern Energy 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 )
=781.4 / 1422.143
=(Revenue - Cost of Goods Sold) / Revenue
=(1422.143 - 640.786) / 1422.143
=54.94 %

NorthWestern Energy 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 )
=201.2 / 356.009
=(Revenue - Cost of Goods Sold) / Revenue
=(356.009 - 154.832) / 356.009
=56.51 %

* 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.


NorthWestern Energy Group  (NAS:NWE) 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

NorthWestern Energy Group had a gross margin of 56.51% 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.


NorthWestern Energy Group Gross Margin % Related Terms

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


NorthWestern Energy Group (NorthWestern Energy Group) Business Description

Traded in Other Exchanges
Address
3010 West 69th Street, Sioux Falls, SD, USA, 57108
NorthWestern Energy Group Inc provides electricity and natural gas services in the Upper Midwest and Northwest of the U.S. in the states of Montana, South Dakota, Nebraska, and Yellowstone National Park. The company's primary segments include Electric utility operations, which include the generation, purchase, transmission, and distribution of electricity, and Natural Gas utility operations, which include the production, purchase, transmission, storage, and distribution of natural gas. The company uses thermal, wind, hydro, or renewable energy in varying quantities, depending on the location of the facilities, to generate power. The company derives the majority of retail electric utility revenue from commercial and residential sales.
Executives
Bleau Lafave officer: VP Asset Mgmt & Bus Dvlpmt 3010 W. 69TH STREET, SIOUX FALLS SD 57108
Sherina M. Edwards director 1201 NETWORK CENTRE DRIVE, EFFINGHAM IL 62401
Jan Robert Horsfall director
Britt E Ide director 345 BOBWHITE COURT, SUITE 200, BOISE ID 83706
Cynthia Fang officer: Vice President - Regulatory 208 N. MONTANA AVE., SUITE 200, HELENA MT 59601
Shannon Heim officer: Vice President and GC 208 N. MONTANA AVE., SUITE 200, HELENA MT 59601
Bobbi L Schroeppel officer: VP Cust. Care & Communications 125 S. DAKOTA AVENUE, SIOUX FALLS SD 57104
Brian B Bird officer: VP, CFO & Treasurer 125 S DAKOTA AVE, SIOUX FALLS SD 57104
Michael R Cashell officer: Vice President - Transmission 40 EAST BROADWAY STREET, BUTTE MT 59701
Robert C Rowe director, officer: President & CEO 3010 WEST 69TH STREET, SIOUX FALLS SD 57108
Jason Merkel officer: VP - Distribution 1313 NORTH LAST CHANCE GULCH, HELENA MT 59601
Kent T Larson director 3010 W. 69TH STREET, SIOUX FALLS SD 57108
Curtis T Pohl officer: Vice President - Distribution 125 S. DAKOTA AVENUE, SIOUX FALLS SD 57104
Anthony Thomas Clark director 3010 W 69TH STREET, SIOUX FALLS SD 57108
H. Grahame Heather officer: VP & General Counsel 209 N. MONTANA AVENUE, SUITE 205, HELENA MT 59601