Shell (SHEL) Gross Margin %

: 7.57% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Shell's Gross Profit for the three months ended in Dec. 2023 was $5,959 Mil. Shell's Revenue for the three months ended in Dec. 2023 was $78,732 Mil. Therefore, Shell's Gross Margin % for the quarter that ended in Dec. 2023 was 7.57%.

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

SHEL' s Gross Margin % Range Over the Past 10 Years
Min: -7.2 Med: 10.06 Max: 20.66
Current: 14.99

During the past 13 years, the highest Gross Margin % of Shell was 20.66%. The lowest was -7.20%. And the median was 10.06%.

SHEL's Gross Margin % is ranked worse than
68.36% of 923 companies
in the Oil & Gas industry
Industry Median: 27.87 vs SHEL: 14.99

Shell had a gross margin of 7.57% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Shell was 0.00% per year.

Shell Gross Margin % Historical Data

The historical data trend for Shell'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.

Shell Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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10.66

-7.20

13.71

20.66

14.91

Shell Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															21.85	19.74	12.30	19.53	7.57

Competitive Comparison

For the Oil & Gas Integrated subindustry, Shell'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.

Shell Gross Margin % Distribution

For the Oil & Gas industry and Energy sector, Shell's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Shell's Gross Margin % falls into.

Shell Gross Margin % Calculation

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

Shell'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 )
	=	47207	/	316620
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(316620 - 269413)	/	316620
	=	14.91 %

Shell'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 )
	=	5959	/	78732
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(78732 - 72773)	/	78732
	=	7.57 %

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.

Shell (NYSE:SHEL) 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

Shell had a gross margin of 7.57% 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.

Shell Gross Margin % Related Terms

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Shell (SHEL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Shell PLC (NYSE:SHEL) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

RYDAF:USA SHELL:Netherlands SHEL:Mexico SHELl:UK SHEL:UK R6C0:Germany R6C0:Germany R6C0:Germany SHEL:Argentina

Address

Shell Centre, London, GBR, SE1 7NA

Website

https://www.shell.com

Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% of which consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.