Gross Margin % is calculated as gross profit divided by its revenue. Sinclair's Gross Profit for the
three
months ended in Dec. 2023 was $377 Mil. Sinclair's Revenue for the
three
months ended in Dec. 2023 was $826 Mil. Therefore, Sinclair's Gross Margin % for the quarter that ended in Dec. 2023 was 45.64%.
Warning Sign:
Sinclair Inc gross margin has been in long-term decline. The average rate of decline per year is -5.5%.
The historical rank and industry rank for Sinclair's Gross Margin % or its related term are showing as below:
SBGI'
s Gross Margin % Range Over the Past 10 Years
Min: 29.12 Med: 55.99 Max: 63.56
Current: 47.03
During the past 13 years, the highestGross Margin % of Sinclair was 63.56%. The lowest was 29.12%. And the median was 55.99%.
SBGI's Gross Margin % is ranked better than 63.66% of 963
companies
in the Media - Diversified industry
Industry Median: 38.52
vs SBGI: 47.03
Sinclair had a gross margin of 45.64% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Sinclair was -5.50% per year.
Sinclair Gross Margin % Historical Data
The historical data trend for Sinclair'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.
Competitive Comparison of Sinclair's Gross Margin %
For the Entertainment subindustry, Sinclair'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.
Sinclair's Gross Margin % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sinclair's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sinclair'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.
Sinclair (NAS:SBGI) 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
Sinclair had a gross margin of 45.64% 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.
Sinclair Gross Margin % Related Terms
Thank you for viewing the detailed overview of Sinclair's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sinclair Broadcast Group is the second-largest television station operator in the U.S., with 185 stations in 86 markets. Of the firm's roughly 600 channels, 150 are affiliated with the four national broadcasters—Fox, ABC, CBS, and NBC—with over 80 other channels on networks aligned with The CW (Nexstar) and MyNetworkTV (Fox). The firm also owns the Tennis Channel and four multicast networks. Via the 2019 purchase of the Fox regional sports networks from Disney, Sinclair is now the largest owner of Diamond Sports, which operates regional sports networks. Diamond Sports sought bankruptcy protection in early 2023.
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