Gross Margin % is calculated as gross profit divided by its revenue. Tidewater's Gross Profit for the
three
months ended in Dec. 2023 was $84 Mil. Tidewater's Revenue for the
three
months ended in Dec. 2023 was $303 Mil. Therefore, Tidewater's Gross Margin % for the quarter that ended in Dec. 2023 was 27.62%.
The historical rank and industry rank for Tidewater's Gross Margin % or its related term are showing as below:
TDW'
s Gross Margin % Range Over the Past 10 Years
Min: -2.04 Med: 18.96 Max: 31.77
Current: 26.61
During the past 13 years, the highestGross Margin % of Tidewater was 31.77%. The lowest was -2.04%. And the median was 18.96%.
TDW's Gross Margin % is ranked worse than 52% of 925
companies
in the Oil & Gas industry
Industry Median: 27.82
vs TDW: 26.61
Tidewater had a gross margin of 27.62% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Tidewater was 0.00% per year.
Tidewater Gross Margin % Historical Data
The historical data trend for Tidewater'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 Tidewater's Gross Margin %
For the Oil & Gas Equipment & Services subindustry, Tidewater'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.
Tidewater's Gross Margin % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Tidewater's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tidewater'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.
Tidewater (NYSE:TDW) 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
Tidewater had a gross margin of 27.62% for the quarter that ended in Dec. 2023 => 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.
Tidewater Gross Margin % Related Terms
Thank you for viewing the detailed overview of Tidewater's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tidewater Inc provides offshore service vessels and marine support services to the global offshore energy industry through the operation of a diversified fleet of marine service vessels. The company's vessels and associated vessel services provide support for all phases of offshore exploration, field development, and production. These services include towing of, and anchor handling for, mobile offshore drilling units; transporting supplies and remotely operated vehicle operations and a variety of specialized services. The company operates in the following principal geographical areas the Americas, Asia Pacific, Middle East, Europe/Mediterranean, and West Africa. The majority of its revenue is derived from West Africa.
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