Switch to:
Petroleo Brasileiro SA Petrobras (NYSE:PBR)
Gross Margin
29.87% (As of Mar. 2016)

Gross Margin is calculated as gross profit divided by its revenue. Petroleo Brasileiro SA Petrobras's gross profit for the three months ended in Mar. 2016 was $5,373 Mil. Petroleo Brasileiro SA Petrobras's revenue for the three months ended in Mar. 2016 was $17,989 Mil. Therefore, Petroleo Brasileiro SA Petrobras's Gross Margin for the quarter that ended in Mar. 2016 was 29.87%.

Warning Sign:

Petroleo Brasileiro SA Petrobras gross margin has been in long term decline. The average rate of decline per year is -6.1%.

PBR' s Gross Margin Range Over the Past 10 Years
Min: 23.47   Max: 46.39
Current: 30.56

23.47
46.39

During the past 13 years, the highest Gross Margin of Petroleo Brasileiro SA Petrobras was 46.39%. The lowest was 23.47%. And the median was 35.06%.

PBR's Gross Margin is ranked higher than
60% of the 73 Companies
in the Global Oil & Gas Integrated industry.

( Industry Median: 27.52 vs. PBR: 30.56 )

Petroleo Brasileiro SA Petrobras had a gross margin of 29.87% for the quarter that ended in Mar. 2016 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Petroleo Brasileiro SA Petrobras was -6.10% per year.


Definition

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

Petroleo Brasileiro SA Petrobras'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 )
=29829 / 97314
=(Revenue - Cost of Goods Sold) / Revenue
=(97314 - 67485) / 97314
=30.65 %

Petroleo Brasileiro SA Petrobras's Gross Margin for the quarter that ended in Mar. 2016 is calculated as

Gross Margin (Q: Mar. 2016 )=Gross Profit (Q: Mar. 2016 ) / Revenue (Q: Mar. 2016 )
=5373 / 17989
=(Revenue - Cost of Goods Sold) / Revenue
=(17989 - 12616) / 17989
=29.87 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.


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

Petroleo Brasileiro SA Petrobras had a gross margin of 29.87% for the quarter that ended in Mar. 2016 => 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.


Related Terms

Operating Margin, Cost of Goods Sold, Gross Profit, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Petroleo Brasileiro SA Petrobras Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Gross Margin 43.3443.2538.3846.3939.4631.7425.3823.4723.7930.65

Petroleo Brasileiro SA Petrobras Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
Gross Margin 20.4623.5022.8723.1325.8930.1431.9828.8831.5529.87
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK