Southwest Gas Holdings (Southwest Gas Holdings) Gross Margin % : 19.82% (As of Dec. 2023)

View and export this data going back to 1979. Start your Free Trial

What is Southwest Gas Holdings Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Southwest Gas Holdings's Gross Profit for the three months ended in Dec. 2023 was $271 Mil. Southwest Gas Holdings's Revenue for the three months ended in Dec. 2023 was $1,368 Mil. Therefore, Southwest Gas Holdings's Gross Margin % for the quarter that ended in Dec. 2023 was 19.82%.

Warning Sign:

Southwest Gas Holdings Inc gross margin has been in long-term decline. The average rate of decline per year is -4.6%.

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

SWX' s Gross Margin % Range Over the Past 10 Years
Min: 18.76 Med: 24.15 Max: 27.56
Current: 18.76

During the past 13 years, the highest Gross Margin % of Southwest Gas Holdings was 27.56%. The lowest was 18.76%. And the median was 24.15%.

SWX's Gross Margin % is ranked worse than
69.58% of 503 companies
in the Utilities - Regulated industry
Industry Median: 28.6 vs SWX: 18.76

Southwest Gas Holdings had a gross margin of 19.82% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Southwest Gas Holdings was -4.60% per year.

Southwest Gas Holdings Gross Margin % Historical Data

The historical data trend for Southwest Gas Holdings'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.

Southwest Gas Holdings Gross Margin % Chart

Southwest Gas Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

Get a 7-Day Free Trial

23.63

24.81

22.31

20.06

18.76

Southwest Gas Holdings 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															21.99	21.40	16.86	15.98	19.82

Competitive Comparison of Southwest Gas Holdings's Gross Margin %

For the Utilities - Regulated Gas subindustry, Southwest Gas Holdings'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.

Southwest Gas Holdings's Gross Margin % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Southwest Gas Holdings's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Southwest Gas Holdings's Gross Margin % falls into.

Southwest Gas Holdings Gross Margin % Calculation

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

Southwest Gas Holdings'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 )
	=	1019.2	/	5433.972
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(5433.972 - 4414.753)	/	5433.972
	=	18.76 %

Southwest Gas Holdings'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 )
	=	271.1	/	1367.531
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1367.531 - 1096.469)	/	1367.531
	=	19.82 %

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.

Southwest Gas Holdings (NYSE:SWX) 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

Southwest Gas Holdings had a gross margin of 19.82% 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.

Southwest Gas Holdings Gross Margin % Related Terms

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

Southwest Gas Holdings (Southwest Gas Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Southwest Gas Holdings Inc (NYSE:SWX) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

SZR:Germany

Address

8360 South Durango Drive, Post Office Box 98510, Las Vegas, NV, USA, 89193-8510

Website

https://www.swgasholdings.com

Southwest Gas Holdings Inc is a utility company primarily engaged in the purchasing, distributing, and transporting of natural gas in the American Southwest. The company segments its activities into natural gas operations and Utility Infrastructure Services units. The first of these encompasses the company's core natural gas business as one of the largest distributors in the states of Arizona and Nevada. The natural gas operations division is responsible for roughly half of Southwest Gas' total revenue through the sale of natural gas to mainly residential and small commercial customers. The Utility Infrastructure Services segment generates the other half of the company's total revenue from the underground piping contractor services that its subsidiary, Centuri Construction Group, provides.

Executives

Paul M Daily	officer: Executive Officer	C/O SOUTHWEST GAS HOLDINGS, INC., 5241 SPRING MOUNTAIN ROAD, LAS VEGAS NV 89150
Carl C Icahn	10 percent owner	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160
Robert J Stefani	officer: SVP/Chief Financial Officer	8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Icahn Partners Lp	10 percent owner	16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Icahn Partners Master Fund Lp	10 percent owner	16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Randall P. Gabe	officer: SVP/Chief Administrative OFC	8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Amy L. Timperley	officer: SVP/Chief Reg. & Fin. Planning	8360 S. DURANGO DRIVE, LAS VEGAS NV 89113
Ruby Sharma	director	24 ARNOLD DRIVE, PRINCETON JCT. NJ 08550
Jose A Cardenas	director	8360 S. DURANGO DR., LAS VEGAS NV 89113
Boyd S. Nelson	officer: VP/Strategy & Inv Relations	8360 S. DURANGO DR., LAS VEGAS NV 89113
Thomas E. Moran	officer: VP/General Counsel/Corp. Sec	SOUTHWEST GAS HOLDINGS, INC., 8360 SOUTH DURANGO DRIVE, LAS VEGAS NV 89113
Julie M. Williams	officer: SVP/Chief Operations Officer	8360 S. DURANGO DR., LAS VEGAS NV 89113
Lori L Colvin	officer: VP/Controller/CAO	8360 S. DURANGO DR., LAS VEGAS NV 89113
Eric Debonis	officer: SVP/Operations	8360 S. DURANGO DR., LAS VEGAS NV 89113
Andrew Teno	director	C/O FIR TREE INC., 55 WEST 46TH STREET, 29TH FLOOR, NEW YORK NY 10036